Quarterly Activities Report
30 June 2018
Southern Gold and Northern Star remain in discussions as to how the Cannon Gold Mine fits within Northern Star’s ongoing project schedule under the ‘right-to-mine’ agreement. An update will be provided in the near term.
Transfind South RC drilling in May returned very high-grade gold intercepts including 1m @ 133.7 g/t Au, 2m @ 24.95 g/t Au, and 1m @ 11.3 g/t Au and identifying the project as a new priority target.
Cowarna April RC drilling results at the Pryde and Logan targets, returned assay results confirming the presence of gold mineralised zones. Best intersections at the Logan target COWRC003 8m @ 1.05g/t Au, and at the Pryde target COWRC010 2m @ 1.51g/t Au.
Monument South drilling returned no anomalous gold despite alteration and sulphide being present.
Development Partner, Bluebird Merchant Ventures, collected 500+ channel and grab samples at the Kochang Gold Project. Best samples returned were; 0.24m @ 65.8g/t Gold & 170 g/t Silver and 0.18m @ 69.2 g/t Gold & 80 g/t Silver from the 245 Level.
BMV has also continued to dewater the flagship Gubong Gold Project expanding this to two sites.
First pass scout diamond drilling program completed at Hampyeong Gold Project in May/June with 3 holes completed for 276m drilled. Best result was in HPDD003 that returned 0.95m @ 5.33g/t gold & 4.9g/t silver from 32.6m and 0.7m @ 2.47 g/t gold & 5.0 g/t silver from 119m.
Southern Gold is close to finalizing a review of its corporate strategy, including the continued operations in two jurisdiction given the level of funding requirements for both.
The Managing Director has been marketing into offshore jurisdictions and seeking investors from alternative funding sources, such as South Korean ‘High Net Worth / Sophisticated’ investors.
Southern Gold also commenced a process whereby several potential corporate investors were invited to conduct due diligence on the South Korean assets with a view to financing exploration costs going forward.
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