Announcement

Quarterly Activities Report - December 2018

31 January 2019

Quarterly Activities Report 31 December 2018

Highlights

South Korea

  • 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.

Western Australia

  • 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.

Corporate

  • 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.

To read the full announcement please download the pdf below:

Quarterly activites Report December 2018