Announcement

Project Generation Building Portfolio in South Korea

04 September 2018

Project Generation strategy continues to build a very valuable portfolio of high-grade gold-silver projects in South Korea

Highlights

  • Project Generation strategy continues to capitalise on numerous exciting commercial opportunities across a wide spectrum of prospective epithermal systems across southern South Korea.

  • Southern Gold now has one of the most strategic tenure positions of any foreign company active in South Korea covering a surface area of approximately 150km2.

  • Southern Gold’s strategic posture reflects our geological understanding of mineralised epithermal systems and the striking analogue with world-class deposits discovered and mined in southern Japan such as Hishikari (see Figure 1).

  • New tenement granted at the Neungju gold-silver epithermal target with recent sampling across multiple vein corridors returned grades up to 20.3g/t Au and 13g/t Ag.

  • Follow-up sampling on quartz veining over 1km long at the historic Sonbul gold mine, an existing Southern Gold tenement, returned grades up to 18.0g/t Au and 270g/t Ag.

  • Neungju is the fourth new project acquired so far in 2018 with first drilling of these new assets scheduled before the end of the year.

Southern Gold Managing Director, Mr. Simon Mitchell: “Our strategic aim with the Project Generation strategy is not to ‘land grab’ for the sake of it but to build a quality portfolio of targets with demonstrable mineralisation on or close to surface with the potential for the discovery of a Tier 1 gold deposit. We only add a project to our portfolio if there is a net improvement in the overall quality of our holdings and the project has the potential for economic exploitation. Under this successful strategy, a significant amount of value has been added to the Southern Gold portfolio in South Korea in the past 12 months.”

“I believe Southern Gold now has the largest tenure position of any foreign exploration company active in South Korea. Tenure is difficult to secure in South Korea and we have now been successful in acquiring 4 additional projects over the course of 2018, including Beopseongpo, Deokon, Aphae and now Neungju. This suite of projects in the Republic of Korea is a potential game-changer for Southern Gold and, subject to securing access and regulatory approvals, we look forward to commencing drilling activity on these new projects by the end of the year.”

To read the complete announcement please download the pdf below:

Project Generation Building Portfolio in South Korea