Weolyu Gold & Silver Project

The Weolyu Project is an historic underground mine that exploited epithermal style gold-silver (+germanium) mineralisation on several structures. The bulk of historical mining occurred on the north side of the river, referred to as Weolyu North. The south side of the river is referred to as Weolyu South, and is some 200m+ higher in elevation than Weolyu North.

Recent Exploration

Previous workers drill tested Weolyu North in 2015, as well as completing reconnaissance work on Weolyu South. New discoveries of classic high-level low sulfidation epithermal quartz veining in this area renewed a push to further investigate the southern zone. The boulders initially discovered at Weolyu South and the recognition of the vein textures as indicative of high level epithermal systems (themselves commonly only weakly mineralised) was highly encouraging.

Weolyu continues to progress forward in an exciting manner. Based on Southern Gold’s experienced team and success in discovery of epithermal systems, it was understood that veins with these textures imply that ore grade mineralisation is at depth, and, at this level, rarely carry ore grade (and thus can be rejected as not prospective if not understood as high level epithermal veins), thus further driving follow-up exploration. This lead to the discovery of classic low-sulfidation banded epithermal veining that returned up to 17g/t Au & 800g/t Ag (ca. 1oz/t Au.equiv).

Subsequent to this, underground cavers investigated small adits and underground workings accessed via an inclined shaft at Weolyu South, and this confirmed that banded epithermal veining remains in the walls near subsurface. This then further drove the need to do detailed follow-up work by a world expert contractor in epithermal systems, which has resulted in the recognition of numerous veins in the area (see ASX Release: 12th December 2016).

Future Plans

Southern Gold is highly encouraged by the results that have been achieved at Weolyu. Significant depth and strike potential on high grade epithermal veins of meter scale widths is significant and this style of mineralisation is typically amenable to selective underground mining.

Further detailed surface mapping by the expert consultant is scheduled for March 2017 and drilling is planned for the first half of 2017 after the winter. Southern Gold is also investigating options to achieve safe underground access at the project and the possibility of creating an underground chamber for flexible drill orientation.