Announcement

Beopseongpo Drilling - Major Epithermal System Confirmed

10 December 2019

Maiden Diamond Drilling at Beopseongpo confirms major epithermal system

• Broad zones of low sulphidation epithermal multi-phase veining intersected within intensely altered basement rocks

• Polyphasal quartz vein textures indicative of incremental dilation, pulsed fluid flow and localised flash boiling, all critical indicators or requirements for precious metals deposition

• Peak intersection was 0.96m @ 5.7g/t gold from 36.45m at ‘Hand of Faith’

• Planning for a second program is underway to test deeper into the system where much higher grades are expected

• ‘Golden Palm’ target to be drill tested in coming weeks

Beopseongpo drilling program

Southern Gold is pleased to announce the results from the first pass scout program at Beopseongpo at the ‘Lotus North’ and ‘Hand of Faith’ Prospects. With all assay results from the maiden drilling program being received, significant intersections above 1g/t Au were from the ‘Hand of Faith’ target and include:

• 1.00m @ 1.48g/t Au from 9.40m in hole BPDD005 (True width)

• 0.96m @ 5.70g/t Au from 36.45m in hole BPDD006 (Est. 0.67m True width)

• 1.05m @ 1.17g/t Au from 46.68m in hole BPDD007 (True width)

These drilling intercepts are highly encouraging from the very small strike section of veining (<100 m strike extent of one vein system) drilled to date. This equates to less than five percent of the total outcrop, subcrop and float train-inferred strike of vein systems mapped at Beopseongpo project area.

Most importantly, the quartz vein textures intersected are typical of the upper-most levels of Low Sulfidation vein systems, less than 50 metres below the palaeowater table. This means the main potential for high grade precious metal mineralization is preserved and interpreted to be between one hundred and five hundred metres below the paleo-water table, which has yet to be drilled (Brathwaite and Christie, 2000). Now that the veins have been intersected, they can easily be targeted down dip in the next program at Hand of Faith.

Southern Gold Managing Director, Mr. Simon Mitchell: “We are pleased to have successfully executed the maiden drill program at Beopseongpo and confirm the large vein widths at Hand of Faith. The results and vein textures are typical of high level low-sulfidation systems and we intend to target these at depth where high grade mineralisation is much more likely in a second phase program next year. Beopseongpo has all the right technical characteristics of a large-scale epithermal system and will require several drill programs to fully test the multiple targets in the extensively veined area.”

To read the complete announcement please download the pdf below:

Beopseongpo Drilling Major Epithermal System