Announcement

Drill Operations Update

12 April 2017
  • Diamond drilling has commenced at the Glandore Gold Project, near Kalgoorlie, Western Australia
  • Diamond drilling commencement imminent at the Weolyu Gold-Silver Project, South Korea

Glandore Gold Project – Kalgoorlie, Western Australia

Southern Gold Ltd is pleased to advise that, after completing extensive work on heritage issues, the 2017 drilling season has commenced at the Glandore project last week. This first stage programme will see 9 diamond drill holes (of generally less than 100m depth) being drilled to confirm the tenor and distribution of historical drilling results and to collect critical geological and structural information.

This initial stage of diamond drilling should take around two weeks to complete with analytical results following in another 4 to 6 weeks.

Assuming this initial phase is successful, a more comprehensive second phase RC drilling programme will be conducted to infill the drilling coverage and enable the determination of an Indicated Resource prepared under the JORC Code.

The overall aim at Glandore is to move the project through to development in relatively compressed timeframes given the quantum of historical drilling already completed by previous workers. To that end the company has already started work in regard to environmental and heritage baseline studies and approvals.

Weolyu South Gold-Silver Project - South Korea

Drilling will also commence in 2 to 3 weeks at the Weolyu South project in South Korea. Subject to rig deployment and set up on site, the programme is ready to launch with all regulatory approvals and access agreements in place. As of today, construction of track access has begun and will enable the deployment of a track mounted diamond drill rig to the first drill pad.

This will be the first diamond drilling into the Weolyu South project that the company is aware of and is a follow up to the exciting results achieved from surface mapping in 2016. For this initial stage 1400m of diamond drilling in 5-6 drill holes is planned.

This initial stage of drilling will take around 9 weeks with results available progressively but up to 6 weeks after programme completion.

The overall aim at Weolyu South is to confirm the geological picture that is unfolding based on our surface exploration work, including intercepts of the main vein systems evident in outcrop at the Weolyu South project and where high grade gold and silver values were returned (see ASX release 12 December 2016 for details). If successful, additional diamond drilling will follow immediately after.