Announcement

Underground Results at Kochang, South Korea

24 May 2018

Significant gold assay results from underground channel sampling by Bluebird Merchant Ventures at Kochang project, South Korea

An exciting new underground channel sampling program has been completed by Southern Gold’s development partner, Bluebird Merchant Ventures, at the Kochang Gold Project in South Korea.

  • A total of 1,331 meters of vein was sampled at 5-meter intervals with 425 channel samples and 100 grab samples collected.

  • Best channel samples returned were 0.24m @ 65.8g/t Au and 170 g/t Ag and 0.18m @ 69.2 g/t Au and 80 g/t Ag from the 245 Level (Table 1)

  • Hydrothermal quartz veining and brecciation was mapped and sampled over 700m strike length within old workings and sampling was conducted over 2 levels of the 4 main levels that comprise the historical workings.

  • Average grade along the 9 development drives from channels sampling was 5.9 g/t Au and 31 g/t Ag with average vein width of 0.42m (Table 2).

  • Partially stoped panels were observed with in-situ stockpiles being sampled with best assays from grab samples of 17.4g/t Au and 165 g/t Ag and 13.5g/t Au and 36g/t Ag on the 245 Level (Table 3).
  • Bluebird Merchant Ventures Moves Forward at Kochang

    Southern Gold Ltd (“Southern Gold”) advises that its development partner, London Stock Exchange listed Bluebird Merchant Ventures Ltd (“Bluebird”), has completed its initial sampling program of the Kochang Gold Project in the Republic of Korea (Figure 1 and Photo 1).

    Bluebird is currently investing a total of US$1 million in the advancement of the historic Gubong and Kochang Gold Mines and earn 50% project equity principally by defining a development framework to advance the projects on a capital cost of less than US$10 million. See Southern Gold ASX release dated 27 March 2017 for further details.

    Managing Director, Mr Simon Mitchell: “We are very pleased to report the underground sampling results from the Kochang Gold Project which were completed by our development partner Bluebird Merchant Ventures. Bluebird has done a great job of confirming the scale and distribution of the mineralisation at Kochang and this work forms a very effective base from which to advance the project towards production.”

    “While there remains much work to be done before we get to that point, we are very pleased with the grade tenor, the consistent nature of the mineralisation along the drives and the fact the system is open in multiple directions. This all reinforces the economic potential of the project which will be the subject of further studies.”

    To read the full announcement please download the pdf below:

    Underground Results at Kochang South Korea