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Bulong Project
Advanced Gold Exploration Project
Cannon Prospect
Southern Gold is continuing to focus on the rapidly developing picture of its Cannon gold discovery within the company’s Bulong South Project, centred approximately 30 km south east of Kalgoorlie in Western Australia.
Southern Gold’s drilling has already discovered gold at Monument, Pinner and Homerton prospects as well as nickel sulphides at the Euston Prospect, but the high grades of near surface gold mineralisation has led to the prioritising the understanding of the gold lodes at Cannon.
The Cannon Prospect is the first of several gold occurrences in the central mining lease (M25/333) and the greater Bulong South Project to be drill tested in detail. Southern Gold has conducted four RC drilling programs targeting the Cannon Prospect since the discovery of the George’s Reward – Cannon mineralisation in 2008.
RC drilling from December 2009 at the Cannon Prospect has produced Southern Gold's best drill intersection of 15m at 9.55 grams per tonne gold from 138m drill depth in hole BSRC078. This intersection was a further 100m southwest along strike from the nearest prior intersection (BSRC010 43m @ 3.4g/t gold - a hole drilled in the tenement boundary area).
The last two campaigns from February and June 2010 have yielded excellent gold grades in both the near-surface lodes under the Cannon gold-in-soil anomaly and in the deeper lodes of Cannon-George’s Reward. Results from the fourth RC drilling campaign at the Cannon Prospect now confirm the prospect as a new gold discovery from surface
Extensional drilling traverses between the Cannon gold in soil anomaly and the Cannon – George’s Reward lodes have returned 26m @4.07 g/t gold from 82m, including 8m @7.04 g/t gold from 83 metres and 6m @6.39 g/t gold from 99m in BSRC108.
Approaching the Cannon – George’s Reward lodes drilling returned 16m @3.24 g/t gold from 83 metres including 9m @5.33 g/t gold from 86 metres in BSRC103, and 32m @2.14 g/t gold from 128 metres including 11m @4.09 g/t gold from 140m in BSRC104 (see Table 1).
Interpretation of recently acquired 'SAM' geophysics data suggests that the gold mineralisation at Cannon lies within a larger southwesterly trending structure that connects to the Pinner Prospect and potentially further southwest to the Homerton and Monument Prospects. It is also interpreted that a cross-cutting set of northwesterly structures, that parallel the Monument trend, may improve the grades of the gold mineralisation along the southwest structure.
On the 24th March 2010 Northern Mining announced an "Inferred resource estimate 375,000 tonnes @ 1.89g/t au for 22,850 oz au. Mineralisation close to surface, open at depth and long strike." for Georges Reward. The Cannon Prospect is contiguous with Georges Reward.
(refer ASX announcements for details)
Regional Exploration
The recent discovery of near surface gold at Cannon has reinforced our conviction that the Bulong terrain has been under explored for gold prompting the expansion of our exploration footprint. We believe our planned regional exploration programs will discover and delineate further prospective areas.
The coverage of the entire tenement package with close spaced auger soil sampling in first half of 2010 has delineated the new targets of Temple, Morden, Goldhawk, Mudchute and Balham, building an inventory of closely located high quality gold prospects.
Additionally soil sampling over the historical Railway prospect (in JV with Heron Resources) exhibits gold-in soil occurring over a 2 km strike length with a maximum 200m width.
Historical drilling conducted during the 1990’s missed the centre peak of the gold-in-soil anomalism defined by Southern Gold’s detailed augering program conducted in April 2010.
These gold-in-soil anomalies are to be further investigated with an aircore drilling campaign scheduled for the second half of 2010.
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Challenger Area Project