ASX Release Friday 28 October 2016
ASX Code: SAU
Korean core drilling and rock sampling deliver peak gold result of 27.8g/t Au
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Assay results have been returned from Government-backed Korean Resources Corporation (KORES) funded core drilling at Kochang East, part of the Kochang Project in South Korea.
Shares Issued: 46.4m Directors
Greg Boulton AM (Chairman) Simon Mitchell (MD) Michael Billing
David Turvey
Head Office Southern Gold Ltd Level 1, 8 Beulah Rd
Norwood SA 5067
Telephone: (08) 8368 8888
Facsimile: (08) 8363 0697 [email protected]com.au www.southerngold.com.auABN: 30 107 424 519
Postal Address Southern Gold Ltd PO Box 255
Kent Town SA 5071
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Drilling results confirm the main mineralised structure near surface and it remains open down dip and along strike. Peak result was 0.2m @ 5.97g/t Au and 16.4g/t Ag from 160m downhole in KCDD0002.
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Assay results for surface rock samples from Kochang have returned significant gold (Au), silver (Ag), lead (Pb) and zinc (Zn) mineralisation. Peak result was 27.8g/t Au and 29.4g/t Ag in KRS200092.
Assay results for first round core drilling and rock samples at Kochang
Australian gold producer, Southern Gold Ltd ("Southern Gold") is pleased to advise that is has received assay results from the first round of KORES co-funded drilling from Kochang East, part of the Company's newly acquired Kochang Project in South Korea, located about 250km southeast of the capital Seoul (Figure 1). Southern Gold considers the broader Kochang Project consists of multiple zones, being: Kochang Gold Mine (KCAu), Kochang Silver Mine (KCAg), Kochang East (KCE), Kochang NW (KCNW), and Kochang Gap (KCGap). Results are summarised in the Significant Intercepts table below (Table 1), and photos (Plate 1).
Figure 1: Location of key projects in South Korea with Kochang highlighted.
Table 1: Significant Intercepts from Kochang East drilling. Photos of highlighted samples in Plate 1.
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Core Drilling
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Hole ID
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From (m)
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Interval (m)
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Au (g/t)
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Ag (g/t)
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Pb (%)
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Zn (%)
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KCDD0001
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82.0
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0.5
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1.9
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17.5
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0.19
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0.65
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KCDD0002
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63.4
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0.35
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1.96
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11.13
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0.38
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0.26
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and
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160.0
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0.2
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5.97
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16.4
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0.71
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0.31
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KCDD0003
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161.0
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0.3
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0.49
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1.7
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0.12
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0.07
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KCDD0004
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33.0
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0.2
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1.23
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2.9
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0.18
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0.24
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and
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54.73
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0.57
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2.18
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12.68
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0.32
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1.38
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See Appendix 1 for further collar and drillhole information.
Significant assay results of reconnaissance rock samples from Kochang (Figure 2) have also been received. These results represent old mullock piles in and around old mine workings (adits), and thus give an indication as to the potential grade of ore when the mine was operational. Results are summarised in the Significant Assays table below (Table 2), and photos (Plate 2).
Table 2: Significant Assays from Kochang rock samples. Photos of highlighted samples in Plate 2.
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Rock Samples
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Rock ID
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Prospect
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Area (map ref.)
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Au (g/t)
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Ag (g/t)
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Pb (%)
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Zn (%)
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KRS200085
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Kochang
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KCE
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20.0
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180
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2.05
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9.04
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KRS200086
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Kochang
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KCE
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3.43
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49.6
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0.42
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0.03
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KRS200087
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Kochang
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KCE
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2.29
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23.6
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0.13
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0.06
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KRS200088
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Kochang
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KCE
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9.63
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55.8
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0.24
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0.02
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KRS200090
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Kochang
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KCE
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16.8
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170
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0.94
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0.34
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KRS200091
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Kochang
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KCE
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20.0
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27.8
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0.29
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0.03
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KRS200092
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Kochang
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KCE
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27.8
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29.4
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0.21
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0.03
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KRS200093
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Kochang
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KCE
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5.45
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11.3
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0.06
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0.95
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KRS200094
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Kochang
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KCE
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8.45
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44.4
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0.03
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2.73
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KRS200095
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Kochang
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KCE
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0.76
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25.3
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0.05
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1.4
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KRS200096
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Kochang
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KCE
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7.53
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95.1
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0.4
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0.08
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KRS200097
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Kochang
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KCE
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1.34
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11.8
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0.07
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2.03
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KRS200098
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Kochang
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KCE
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1.26
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36.6
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0.36
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0.11
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KRS200102
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Kochang
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KCE
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3.68
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36.8
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0.2
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0.04
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KRS200104
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Kochang
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KCNW
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0.37
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40.6
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0.05
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0.09
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KRS200109
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Kochang
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KCNW
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0.07
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36.8
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0.09
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0.11
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First round drilling and rock sample results at Kochang
As part of receiving KORES drilling grants, drilling locations have to be approved by KORES. Southern Gold's initial focus has been on the former Kochang Gold Mine, showing the most significant historical workings, as well as highest gold assay results from historical face sampling (Figure 2). Figure 2 further highlights where KORES has approved drilling at the Kochang Project, compared to areas that Southern Gold considers the most prospective areas, which do not have KORES funding support for drilling.
The assays shown in Table 1 and initial review in 3D confirm all drill-holes have hit the projected mineralised structure near surface, and that down dip potential remains below old workings (i.e. not previously mined out). Grade variability along strike is expected (see Figure 2, underground face samples at Kochang East are lower than those at Kochang Gold Mine), whereas the waste dump rock samples are selective and may give an indication as to the grades of material likely sourced from within the main mineralised structure and mined in the past (Table 2).
The drilling conducted to date confirms the north-east extension of the mineralised structure and the rock chips confirm the tenor of grade possible in mineralised lode zones. Southern Gold is highly encouraged by these results and outcomes and looks forward to planning future work programs to further test the Kochang Project, including exploring outside of KORES approved drilling grant areas, and looking at opening up historical underground workings.
For example, a prime target of future work will be to test down dip/plunge from very high gold values encountered in the lowest level of the Kochang Gold Mine where a 150m length of drive was face sampled and returned results between 20g/t and 122g/t Au (Figure 3). These sorts of high grade zones will be a priority target for future drilling or underground sampling.
Update of second round drilling at Kochang
KORES granted a second round of drilling for 380m at Kochang NW (Sanpo Mine - see Figure 2), funding 70% of direct drilling costs (see ASX release 5th Sept. 2016). Drilling has been completed and is now subject to inspection by KORES prior to Southern Gold selecting samples for assay.
Results from this programme are expected in 4-6 weeks time.
Southern Gold Managing Directors, Mr. Simon Mitchell:
"While the gold grade tenor of mineralisation intersected in the drilling in the north east sector of Kochang has been lower than what we are seeing in surface rocks, the overall geological picture is starting to come together. In the past month we have started detailed mapping of the area and some of the surface rocks have returned some pretty spectacular assays, with significantly elevated gold, silver, lead and zinc results.
"There is a bigger picture at Kochang that we are only just starting to piece together and our initial impression is that mineralisation is more widespread across the district than previously thought, although we still have some way to go in understanding the detailed distribution of high grade material. Once we get underground access, this understanding should move forward significantly."
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Plate 1: Core photos of peak assay results from drilling at Kochang East
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KCDD0002 from 63.4m top, 63.6m below: 0.35m @ 1.96g/t Au and 11.93g/t Ag
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KCDD0002 from 160m: 0.2m @ 5.97g/t Au and 16.24g/t Ag
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