Heungdeok Gold Project

The Heungdeok Project is located in the Yeongdong District, which historically hosts a number of gold mines in South Korea. Heungdeok is an historic underground mine that exploited a number of parallel quartz veins but was closed in 1961 with historical reports indicating an average grade of 13g/t Au from the deposit.

Previous historical work by KMPC and KORES suggest 271,000 ounces of gold remaining in-situ at Heungdeok (see “Foreign Estimates” table below). A number of small-scale adits are apparent at surface, and historical maps and reports suggest that underground development was limited with development drives down 2 to 3 levels only. No previous drilling has occurred at Heungdeok.

History

The region boasts a high number of gold occurrences and numerous quartz vein outcrops. The gold grade tenor in the region is high with historical gold grades in the 15-25g/t Au range reported for Heungdeok and the nearby Samwhanghak historic mines. Historic mining exploited quartz veins with an average width of 0.5 to 1.5m width at Heungdeok where 4 parallel quartz reefs were exploited and these have been mapped along 300 metres of strike. An additional 4 parallel veins have also been identified.

The broader Yeongdong District hosts a number of brownfields exploration opportunities, including Heungdeok, that, if resources were proven up, would be within trucking distance of a potential central milling facility.

Foreign Estimates of Resources: Heungdeok

Recent Exploration

Very little surface exploration has taken place at Heungdeok in the past 30-40 years. There has been no drilling and only limited access to very poorly developed underground workings. In the present day open stopes are evident and a substantial amount of mullock is on surface between the low lying hills.

With multiple veins, historical high grade gold mining and district wide mineralisation evident, Southern Gold believes Heungdeok represents a good greenfields style target to be tested in the medium term once site access is achieved.