Quarterly Activities Report 31 March 2018
- Agreement was reached in January with Westgold to advance the Cannon underground project. A $1.5 million cash payment was made in exchange for a 5 year right-to-mine to be followed by production payments starting at $160/oz for the first 15,000oz gold and $180/oz thereafter.
- Westgold Resources subsequently sold its wholly-owned subsidiary HBJ Minerals Pty Ltd to Northern Star Ltd with the Cannon Right-to-Mine remaining in place with the transfer of ownership. Northern Star will provide an updated Cannon development schedule in the coming quarter.
- A series of RC drill programs totalling over 3,600m has commenced in March and will conclude in Mid-April targeting the Pryde and Logan Banded Iron Formation (BIF) targets at the Cowarna project, a bio-geochemical anomaly at Monument South and the Transfind Extend Project at Glandore.
- These programmes follow up on significant rock chip samples from the Cowarna Project with 3.78 g/t Au and 1.52 g/t at the Nightcrawler prospect and 8.93 g/t and 1.59 g/t at the Transfind Extended project.
- In March, Southern Gold’s joint venture partner, Bluebird Merchant Ventures (BMV), has re-opened the Kochang mine and commenced underground survey, mapping and sampling.
- BMV has also commenced dewatering at the flagship Gubong Gold Project that will allow metallurgical test work to complete the feasibility study that is now underway.
- The South Korean portfolio continues to grow and add value with several new tenements granted, including:
- Aphae (100% SAU, Muan 109): Historic gold mine production of 115kg of gold, with recent mine mullock samples grading 6.08g/t Au. “Walk-up” drill target to be tested in the coming field season.
- Hampyeong (100% SAU, Naju 136): Newly discovered kilometre-scale epithermal quartz veins, including the Nabi and Saseun Vein Zones grading up to 13.4g/t Au, 27.70g/t Ag. “Walk-up” drill targets to be tested in the next 2-3 months in an area that has never been drilled.
- Project Generation ongoing, identifying and adding highly prospective targets to the portfolio that are typically drill-ready (e.g. Aphae).
- An second phase underground sampling program at the Weolyu Project has been planned and will start in the coming field season.
To read the full announcement please download the pdf below: