Quarterly Activities Report 31 December 2018
- Weolyu South Au-Ag Project follow up underground channel sampling was completed in November returning significant intercepts including 0.4m @ 32.8 g/t gold and 764 g/t silver, 0.45m @ 30.0 g/t gold and 1,280 g/t silver, and 0.55m @ 28.9 g/t gold and 1,350 g/t silver.
- Deokon Au-Ag Project underground channel sampling conducted at the Shin adit returned significant intercepts including 0.35m @ 12.6 g/t gold and 509 g/t silver, 0.25m @ 12.3 g/t gold and 1,290 g/t silver, and 0.4m @ 9.26 g/t gold and 1,165 g/t silver.
- Southern Gold project generation and development activities to focus on Weolyu and Jeolla Districts targeting epithermal-style Au-Ag mineralisation. There is significant potential to discover very valuable precious metal deposits in these regions.
- Southern Gold acquires the Georges Reward Mining Lease (M25/357) from Northern Star in a new strategic agreement announced in December.
- Southern Gold preparing a new gold resource to include the Georges Reward zone and prepared in accordance with the JORC Code.
- Discussions have commenced with interested parties with the capability to release value from the Cannon gold mine. The asset represents a very good potential cash flow source for 2019.
- Southern Gold withdrew from the Heron Joint Venture with tenements to be transferred to Ardea Resources.
- Southern Gold established the operating companies in South Korea to enable management of the 50/50 Joint Venture (JV) with Bluebird Merchant Ventures. This included ~A$280,000 Foreign Direct Investment seed funding (required under South Korean foreign investment rules) and represents Southern Gold’s contribution to the JV until at least April 2019.
- Program of expenditure minimisation implemented to position the business with lower corporate overheads going forward.
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