Southern Gold starts deep diamond drilling at Weolyu as it looks to add to South Korean drill pipeline for 2021

Proactive Investors Monday, 14 September 2020
Southern Gold Ltd (ASX:SAU) has received regulatory approvals for a diamond drilling program at the Weolyu and Dokcheon projects in South Korea. A suitable access track for a small rig has been built and drilling is underway at Weolyu. The Weolyu program is expected to take about two months to drill and following this, it is likely more drilling will be completed at the Aphae and Dokcheon projects. Drill pipeline for 2021 Southern Gold managing director Simon Mitchell said: “It is great that the drill rig will be back turning at Weolyu – a program that has been much anticipated by our technical crew – which is one of our main targets. “This, combined with the unfolding geological story at Aphae and a drill-ready program waiting at Dokcheon, represent some high-quality drill targets and a very full program for the balance of 2020. “Just around the corner are the autumn months where we are already planning to utilise our local South Korean geological team for follow up mapping and sampling work to enable some new projects to be added to our drill pipeline for 2021.” Five holes at Weolyu At Weolyu, the drill plan involves five holes for a designed 1,610 metres to test a 150-metre strike section of the Surprise/Moonlight Vein trend and the projected Mystery Vein in its footwall. The drill pad location will enable a series of fanned holes to test the Surprise-Moonlight and Mystery vein systems with a series of pierce points in each from about 100 metres to 200 metres vertically below surface. The program aim is to: ➢ Determine whether the grade increases with depth, as expected based on the high-level epithermal textures observed on surface; and ➢ Define the scale potential (strike length and elevation) of the known shoots in the underground workings, to establish an exploration target framework. Aphae drilling Remaining pending assays from the maiden Aphae program show a peak intersection of 0.94 metres at 5.07 g/t gold and 26 g/t silver from 129.16 metres downhole within polymetallic sulphidic-silica veining from the hanging wall margin of the deeper smectite-illite alteration zone. The breccia interval intersected further up the hole returned lower grade mineralisation of 1.38 metres at 0.22 g/t and 9 g/t silver from 48.62 metres downhole. Both intersections distinctly correlate with low magnetic susceptibility readings, interpreted to represent magnetite destruction through alteration, which should be able to be mapped along strike with the upcoming planned ground magnetic survey. The second phase of drilling is being planned in conjunction with the assistance of the petrological analysis currently being completed. Dokcheon drill program The drill program at Dokcheon is ready to begin after or concurrently with the Weolyu and Aphae Phase 2 programs. An initial 760-metre, four drill-hole diamond program is planned to test the Cheongyong Vein at the Dokcheon project, about 15 kilometres east-southeast of the Mokpo port and city in southern Jeolla. Janghwal Southern Gold has also lodged tenure applications for the Janghwal project. The Janghwal epithermal vein system, discovered through field reconnaissance in 2017, has not had the attention since, as the tenure was previously held by another party. It lies within prospective silica-illite/adularia-clay altered rhyolitic to rhyodacitic flow-dome lavas and pyroclastics, around 13 kilometres east-southeast of the Eunsan gold-silver mine. An initial float sampling from 2017 generated weakly gold anomalous values, with a peak gold assay value of 0.96 g/t gold without anomalous accompanying silver or base metals. This is the same trend as the highly gold-silver mineralised vein systems exploited further to the west at Eunsan and Moisan. Follow up reconnaissance sampling and mapping is planned to be completed prior to drilling. Deokon Drilling An update on Deokon drilling will be provided once all assays are returned from the drill program at Shin Hill, which was completed in July. There has been some delay in the receipt of the assays due to international freight logistics and high volumes of packages as a result of the impacts of COVID-19. Gubong and Kochang JV sale In a separate statement, the company provided an update on the sale of its joint venture interests involving the Gubong and Kochang projects in Korea, to Bluebird Merchant Ventures PLC (LON:BMV). As both parties have been unable to agree on a price, an expert will be appointed to determine the price and both parties are legally bound to accept this price. The expert will have 30 days from the date of appointment to make the price determination and the sale of the JV interests must be completed within 60 days.

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