Announcement

Tenements Granted at Deokon - South Korea

06 August 2018

Bonanza grade gold-silver in tenements granted to Southern Gold in South Korea

HIGHLIGHTS

  • Bonanza grade gold-silver in two new tenements granted 100% to Southern Gold at the historic Deokon Gold Mine, central-southwest South Korea.
  • Grades up to: 13.3 g/t Au & 2,130 g/t Ag (mullock); 9.23 g/t Au & 1,080 g/t Ag (mullock); and, 4.0 g/t Au & 681 g/t Ag (outcrop) returned from recent rock chip and grab sampling of in-situ vein and mullock.
  • Historical underground channel sampling peak results include: 0.5m @ 59.3 g/t Au & 8,879 g/t Ag; 0.6m @ 29.3 g/t Au & 3,820 g/t Ag; and, 0.6m @ 28.5 g/t Au & 7,485 g/t Ag.
  • Historical drilling is sparse and poorly targeted. Mineralisation remains open along strike and down-dip of historically mined high to bonanza grade gold and silver.
  • First pass field mapping and sampling by Southern Gold has, in addition to confirming mineralised zones, identified large zones of intense alteration that remain untested.
  • “Walk-up” drill target to be tested in the next few months.

Tenure granted over historic Deokon Gold Mine

Southern Gold Limited is pleased to announce the granting of Exploration Rights for the Deokon Project hosting two historical gold-silver mines in central-southwest of South Korea (Figure 1). Detailed ground work early in 2018 by Southern Gold identified Deokon as one of several very prospective epithermal gold-silver targets where there is the potential for a mineralised system much greater in size than what was historically recognised.

Sampling by Southern Gold of mullock (waste from previous mining) adjacent to and on exposed veining within adits at the Deokon Main Mine and Shin Adit prospects returned nine (9) samples over 1g/t Au and a peak of 13.3 g/t gold and 2,130 g/t silver (Table 1 and Photos A to D). Two historically exploited vein trends have been defined that constitute early drill targets.

Southern Gold Managing Director, Mr Simon Mitchell: “Deokon represents a Tier 1 exploration target for Southern Gold with large footprint, spectacular gold-silver grades and easy drill and development access. It is also part of the early stages of our Project Generation work and, if the broader Deokon system is as good as we anticipate, we are confident that we will add more similar high potential projects to our portfolio. With some of these samples going 6 gold ounces equivalent to the tonne, it doesn’t take a lot of tonnes to achieve a very profitable deposit. Deokon is therefore a very important and valuable addition to our asset base.”

To read the complete announcement please download the pdf below:

Tenements Granted at Deokon South Korea