Announcement

Weolyu High Grade Au-Ag confirmed

29 January 2019

High grade gold-silver zones confirmed at Weolyu South Project, South Korea

  • Additional infill channel samples taken from in-situ epithermal vein system within small-scale historic mine.

  • Significant intercepts include 0.4m @ 32.8g/t gold and 764g/t silver, 0.45m @ 30.0g/t gold and 1,280g/t silver, and 0.55m @ 28.9g/t gold and 1,350g/t silver.

  • Re-assay of Weolyu samples has resulted in 30% increase in previously reported gold grades after quality control checks.

Underground infill channel sampling completed

Southern Gold has completed the second phase of systematic underground channel sampling at its 100% owned Weolyu South gold-silver project in central South Korea (Figure 1). The sampling was designed to infill and extend previous results and as a quality assurance (“QAQC”) program checking on assaying protocols. Previous underground sampling results were reported in ASX release “High grade gold and silver results from new work on historic South Korean mine” on 20 December 2017.

In this new phase of work a total of 18 new channel sample lines were taken as infill or extensional samples and a further 29 lines were re-assayed for 34 samples, from coarse rejects retained from the first round of sampling in 2017. New samples were collected from three horizons along the historical drives (Figures 2 & 3).

The results from the new channel lines are highlight in Table 1, with re-assaying of the original samples tabulated in Table 2 with old and new values. These newly reported results have continued to produce excellent gold and silver grades associated with the three currently defined high grade zones or shoots.

A review into sample preparation and assaying results was conducted as part of a general QAQC review through a third-party laboratory following indications of statistical variance in the original analysis. This review returned a significant variance on all sample fire assay gold results including an average 30% increase in gold grades from the Weolyu samples, a significant uplift which has an impact on economic potential with a clear high-grade gold-silver zone showing greater consistency.

Southern Gold Managing Director, Mr. Simon Mitchell: “Weolyu is Southern Golds premier exploration target and continues to impress with its very high grade gold and silver tenor from high quality drill-equivalent channel samples at close to true width on the vein. This underground channel sampling is on only one vein system while we have identified multiple epithermal quartz veins on surface, most of which remain untested by drilling. The Company plans to drill the down plunge extension of this very high-grade gold-silver system and the other untested epithermal quartz vein systems in the coming year.”

To read the complete announcement please download the pdf below:

Weolyu High Grade Au Ag confirmed