Proactiveinvestors United Kingdom Southern Gold Ltd https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Southern Gold Ltd RSS feed en Sun, 19 May 2019 09:33:36 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Strategic shift sees Southern Gold Ltd focus its attention on Korea opportunities ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12928/strategic-shift-sees-southern-gold-ltd-focus-its-attention-on-korea-opportunities-12928.html Tue, 09 Apr 2019 14:11:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/12928/strategic-shift-sees-southern-gold-ltd-focus-its-attention-on-korea-opportunities-12928.html <![CDATA[News - Southern Gold hunts next Hishikari mine in South Korea as Bluebird JV matures ]]> https://www.proactiveinvestors.co.uk/companies/news/215664/southern-gold-hunts-next-hishikari-mine-in-south-korea-as-bluebird-jv-matures-215664.html Southern Gold Limited (ASX:SAU) is focused on precious metals project development and exploration in South Korea where it has projects with higher-valued joint venture partner Bluebird Merchant Ventures Ltd (LON:BMV).

The partners have joint 50-50 stakes in the potentially company-making large Gubong Gold Project and the nearer-term, smaller Kochang Gold Project.

READ: Southern Gold has major epithermal gold targets in South Korea, and the potential for near-term production

Southern Gold’s other projects in South Korea are wholly owned and include prospective greenfields projects in underexplored territory.

The company also has the Cannon Gold Project 30 kilometres of Kalgoorlie-Boulder in the Goldfields region of Western Australia where the Diggers & Dealers Mining Forum is held each year.

South Australia-based Southern Gold now owns all of the Cannon project after picking up a lease and mining rights from former JV partner Northern Star Resources’ (ASX:NST) (FRA:NS7) (OTCMKTS:NESRF).

Also in the Kalgoorlie area, Southern Gold has the Cowarna Gold Project and the Glandore Gold Project it is farming into as part of a JV with Aruma Resources Ltd (ASX:AAJ).

Southern Gold withdrew from the Heron Resources (ASX:HRR) (FRA:HR7) JV and opted this quarter not to take up an option to buy Transfind Extended Gold Project from prospectors.

The company continues to hold the buy option.

Cannon project cash value to be accessed

Southern Gold managing director Simon Mitchell told Proactive Investors the company was looking at a number of solutions for its primary West Australian asset.

Mitchell said, “We’re looking to monetise the Cannon asset and we’ve certainly over time been reducing our exposure to Australia and now most of our operational people are really focused on the South Korean side of things.

“There’s quite a bit of value in Cannon as a potential mine. It’s not likely to be Southern Gold that will be the miner, it’ll be somebody else.

“We’re in the process of looking at options for bringing somebody into either mine it on our behalf or to purchase it from us or, in one way or the other, we will release some cash value from that (asset) over the short term.”

Bluebird JV the way forward

South Korea and the Bluebird JV is Southern Gold’s operational focus.

Mitchell said, “In South Korea, we do have indeed the Bluebird joint venture and that is the most likely near-term cashflow source and it’s likely to be a near-term gold pour by the end of this year, according to (Bluebird’s) targets.”

London-listed Bluebird is on record stating this year as being its target for first gold production.

“It’s targeting first gold pour by the end of this year. Even if it takes them a little bit longer than that, that’s still pretty rapid and a great outcome.”

Mitchell expects first gold pour at Kachong, with Gubong to follow.

Gubong a potential “company maker”

The aim for the larger of Southern Gold’s Bluebird projects, Gubong, is to mine high-grade gold.

Partners Bluebird and Southern Gold hope to extract metals with a simple process, such as a gravity or vat leach, with low capital intensity, and hope to achieve cash flow as early as possible.

Mitchell said, “Bluebird is working on two principal projects, Gubong and Kochang, and they’re two quite contrasting projects.

“Gubong is by far the larger and will represent the larger challenge to reactivate because it’s going to take a lot of effort to reopen and dewater and really extract the potential from there.

“But it’s actually got huge company-making potential in the medium term.”

A regional trend at the project is more than 5 kilometres long, and exploration target range is 1.2-2.3 million tonnes grading 6-8 g/t gold containing 230,000-580,000 ounces of gold.

The target range only relates to a small part of the project site, Vein No 6 at Gubong South.

Kochang to make South Korean operations self-funding

Mitchell told Proactive he expected the joint venture would produce first gold at Kochang, then shift efforts to Gubong.

He said, “Kochang is a much smaller project, but it’s much easier to access (and) we’ve got full underground access even today.

“Here the veins are narrow but the grades are higher and, because the access is so easy, we can get rolling there very quickly.

“Kochang is likely to be the first project where we get first gold pour and it really is the entree, if you will, to the larger meal which is Gubong.”

Kochang cash flow will turn Southern Gold’s South Korean operations into a self-funded business.

Mitchell said, “We’ll get the cash flow going at Kochang as soon as we can and then that will mean that our operations are at least self-funded in-country from that point onwards.

“And (then) we can look at various options at Gubong, which will be a much bigger thing to do in the medium term.”

South Korean prospectivity

South Korea is prospective territory for Southern Gold which has compiled a skilled team to assist with its efforts, included famed explorers that were involved with the Indochina Goldfields (Ivanhoe Mines) efforts of the 1990s.

On the team is technical adviser Doug Kirwin, who is sold on the value of South Korea, and SK consultants Dr Chris Bowden and Craig Panther.

Other assets the company holds in South Korea have new discovery potential and include the Weolyu and Deokon gold-silver projects and the Beopseongpo, Neungju and Hampyeong gold projects.

Mitchell notes the prospectivity of South Korea, saying “Because the country has been shut down for so long and there hasn’t really been any exploration companies with technical capability in the area of epithermal geology, there’s been a rediscovery of all these opportunities in southwestern Korea.

“We’re basically stumbling along a part of the world where we’re discovering new projects which have never really been properly assessed.

“It’s a little bit like coming across a new mineral district with huge potential and we’re the only game in town, right?

“We’re really the only group that is looking at it, and so we’re pegging projects and starting to work on systems that have never really been properly assessed.”

The company believes there’s potential for a big discovery, like Sumitomo Metal Mining Co, Ltd’s (TYO:5713) (FRA:S19) (OTCMKTS:SMMYY) 8 million ounce Hishikari gold mine in Isa, Kagoshima, in southwestern Japan.

“What we are looking for another Hishikari … the longest running, highest grade gold mine in the world.

“We think that there’s certain geological parallels to what you see in southwestern Japan as what you see in southwestern Korea.

“You can never guarantee these things in our business but as far as we can, we believe that we have a situation which means that the probability of discovery is much higher than normal because of the cultural and geological context that we have in southern Korea.

“We are looking for another Hishikari. Even if we find a baby Hishikari, we will be extremely happy.”

London listing planned

Investors operating out of London and European investment markets are noting the opportunity South Korea poses.

Southern Gold has fielded significant enquiries from people based in the global financial centre since the company indicated it was exploring options for a London listing.

Mitchell said, “We’ll certainly be looking at it very seriously and we hope to be out to talk about some opportunities … hopefully in the next few weeks or so.

“No exaggeration, I’ve probably had more interest from the brokers in London in three months than I’ve had in Australia in three years in terms of my presentation about the Korean projects.

“There’s a genuine appetite and understanding in London about the potential that we have in Korea and a certain appetite to get behind it.”

As Mitchell likes to say, watch this space.

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Sun, 03 Mar 2019 20:55:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215664/southern-gold-hunts-next-hishikari-mine-in-south-korea-as-bluebird-jv-matures-215664.html
<![CDATA[News - Southern Gold has major epithermal gold targets in South Korea, and the potential for near-term production too ]]> https://www.proactiveinvestors.co.uk/companies/news/213057/southern-gold-has-major-epithermal-gold-targets-in-south-korea-and-the-potential-for-near-term-production-too-213057.html UK investors may shortly have a new way to gain exposure to emerging opportunities in the gold space in South Korea.

Southern Gold (ASX:SAU) is considering a standard listing on the main board of the London stock exchange with a view to tapping into a deeper pool of liquidity, and perhaps also of boosting the rating.

“We’ll get a better valuation in London,” says managing director Simon Mitchell.

He can state this with confidence because Southern Gold’s partner on two South Korean assets is Bluebird Merchant Ventures (LON:BMV), which has been listed in London for a few years now, and which is currently worth nearly £5.5mln.

The market capitalisation of Southern Gold, by contrast, rings in at A$8.4mln, or £4.7mln, even though it has a much broader portfolio of assets.

“Bluebird has earned into our Gubong project, and at Kochang they’re earning in,” explains Mitchell. “And based on these two assets they have a market capitalisation somewhat higher than ours, even though we have more assets in Korea, and we have near-term production in Australia.”

So what’s up with the Australian market, that seems to discount the valuation of Southern Gold so much? After all, Bluebird’s rating isn’t overly punchy itself.

One explanation Mitchell offers is size.

With the gold price roaring away in Aussie dollar terms, some gold mining companies are much in demand, but investors are still being very selective.

“In the Australian gold space the mid-cap producers are hot,” says Mitchell, “but the juniors are still struggling.”

To some extent too, South Korea is a bit of an unknown quantity to the mining investment community, although there is a strong history of mining there. In London, the ratings are currently more generous and Bluebird has blazed a story-telling trail in terms of getting South Korea understood in the investment community.

The crucial message, both from Southern Gold and from Bluebird, is that there will be cash flow from the South Korean assets within two years.

Initially, says Mitchell, this will be “modest in scale and in build.”

But, he adds, there are some first class epithermal gold targets in South-West Korea, many of which were looked over by Ivanhoe, before all Ivanhoe eyes were irresistibly drawn to Mongolia.

Under the expert guidance of Doug Kirwin, Southern Gold’s senior geologist, Mitchell believes the company has the capacity to deliver some major new discoveries.

“Doug’s found several world-class deposits,” says Mitchell. He was with the Ivanhoe team in South Korea.

Now, the thinking is that the geology of the south west of Korea shows considerable parallels to the geology in the south west of Japan, where there are some world class epithermal deposits.

In particular, says Mitchell, the South Korean targets are analogous to the ultra high grade Hishikari mine, which has showed an average grade of over 40 grams per tonne over the life of the mine.

Of particular interest to Southern Gold are the 3.8 kilometre Beopseongpo target, the multiple vein system at Deokon, and the Weolyu gold silver and germanium project, all in the south west or central part of the country, and all 100%-owned by Southern Gold.

In support of exploration on these major targets will be upcoming cashflow from the joint ventured mines of Gubong and Kochang to the north and north-east respectively, with feasibility studies on both due out shortly.

In addition, there should soon be a contribution too from Southern Gold’s Cannon mine in Western Australia.

This project already has a track record of small-scale production and cash generation, although it’s currently on hiatus as it transitions to underground mining.

At the moment the underground resource is still fairly small, but it’s not been drilled extensively and Mitchell says he expects mineralisation to keep on going down as the company mines towards it.

“We’re quietly confident, subject to drilling that this thing will keep going,” he says.

As it stands the mining costs are reckoned likely to ring in at around US$800 per ounce, so the margins on offer ought to be substantial.

Clearly, Southern Gold will need to undergo a substantial capital raising exercise if it ever wants to develop one of its major South Korean epithermal projects. But for the time being, it looks attractive enough as a play on South Korean exploration and small-scale development, supported by upcoming cash flow to keep the lights on from Australia.

That’s just the sort of model that London investors have traditionally appreciated, so expect the UK welcome to be warm.

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Tue, 22 Jan 2019 10:29:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/213057/southern-gold-has-major-epithermal-gold-targets-in-south-korea-and-the-potential-for-near-term-production-too-213057.html
<![CDATA[Media files - Southern Gold hopeful of going underground at Cannon in 2019 ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11345/southern-gold-hopeful-of-going-underground-at-cannon-in-2019-11345.html Wed, 28 Nov 2018 11:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11345/southern-gold-hopeful-of-going-underground-at-cannon-in-2019-11345.html <![CDATA[News - Southern Gold Ltd develops a taste for South Korean gold ]]> https://www.proactiveinvestors.co.uk/companies/news/162302/southern-gold-ltd-develops-a-taste-for-south-korean-gold-69700.html Southern Gold Ltd (ASX:SAU) has executed a binding agreement to acquire a Singaporean registered company that owns 44 granted tenements across 17 project areas in South Korea.

The Kalgoorlie Cannon Gold mine producer, will pay $116,000 cash, assume $70,000 in liabilities and 6.3 million shares in Southern worth about $2.1 million.

While there is a portfolio of 17 project areas in South Korea, 6 projects stand out.

One of the projects, Weolyu, is in a district yet to see a single drill hole, but where rock float sampling at surface returned 17.6 g/t gold and 820 g/t silver. Clearly, this is a priority drill target.

Even better, the quest has the support of government-backed Korean Resources Corporation (KORES) for drilling.

At least four of six highest priority targets will be drilled within 18 months with first drilling within two months.

The Gubong project is situated in an area which hosts the 2nd largest gold mine in Korea with more than 400,000 ounces of gold produced.

Southern’s portfolio of projects in Korea has an indicative exploration target range of up to 1.5 million ounces of gold at grades possibley between 6 g/t and 12 g/t gold.

So there are prospective greenfield epithermal gold targets on offer in an under-explored area.

The company is planning to undertake a $1.2 million cornerstone placement to three shareholders of the vendor Asiatic Gold Ltd at $0.35 per share, an 18% premium to its 20-day volume weighted average price.

Southern Gold has has produced 12,074 ounces of gold to date at the Cannon Gold Mine.

Mining partner Metals X (ASX:MLX)  was contracted to carry out all mining, haulage, and processing activities at the site. The ore is processed at Metals X's Jubilee mill facility, located 35 kilometres southwest.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 08 Jul 2016 14:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/162302/southern-gold-ltd-develops-a-taste-for-south-korean-gold-69700.html
<![CDATA[News - Southern Gold Ltd eyes additional near-term production potential ]]> https://www.proactiveinvestors.co.uk/companies/news/162301/southern-gold-ltd-eyes-additional-near-term-production-potential-68334.html Southern Gold Ltd (ASX:SAU) has completed the drawdown of a $1 million convertible debt facility from high net worth investors to advance the Cannon and Glandore projects in Western Australia.

The $1 million facility is available as a single drawdown with an 8% interest rate, 2% arrangement fee and repayable by 30 June 2017.

The debt is unsecured but is nominally backed by the issuance of call options with an average strike price of $0.36 per share, expiring on 30 June 2017.

If exercised prior to full debt repayment, proceeds from the options are to be applied to repayment of the loan.

After the drawdown, Southern Gold’s cash position is around $1.56 million.

Southern Gold will use the funds to start diamond drilling at the Cannon Gold Mine, with the intention of extending JORC resources below the open pit, in preparation for potential underground mining.

The company is actively mining at the Cannon Gold Mine where a total 9,978 ounces of gold have been recovered as of the end of January 2016.

Southern Gold will also undertake reverse circulation drilling to advance the portfolio of JORC resource targets at the new Glandore Project, 12 kilometres to the east of Cannon Mine.

The shares of Southern Gold has increased by about 35% since the beginning of 2016.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Thu, 28 Apr 2016 16:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/162301/southern-gold-ltd-eyes-additional-near-term-production-potential-68334.html
<![CDATA[News - Southern Gold Ltd to divulge material acquisition ]]> https://www.proactiveinvestors.co.uk/companies/news/162300/southern-gold-ltd-to-divulge-material-acquisition-67862.html Southern Gold Ltd (ASX:SAU) will outline a material acquisition this week, with the ASX granting the company a trading halt to prepare.

No other details have yet been revealed.

Earlier in the month the company executed a binding term sheet for the provision of a $1,000,000 convertible debt facility.

At the end of last week, Southern Gold said that this facility, combined with the Metals X Ltd (ASX:MLX) loan available under the Supplementary Deed to the Contracting and Financing Agreement for Cannon Resources, and cash flow from the Cannon Mine itself, means the company is fully-funded to advance its projects for the next several years.

Cash flow from the Cannon Mine is expected at the end of 2016 well before the debt repayment date of 30 June 2017.

The halt will remain in place until the opening of trade on Wednesday 6th April 2016, or earlier if an announcement is made to the market.



Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Mon, 04 Apr 2016 17:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/162300/southern-gold-ltd-to-divulge-material-acquisition-67862.html
<![CDATA[News - Southern Gold is Australia's newest producer ]]> https://www.proactiveinvestors.co.uk/companies/news/162299/southern-gold-is-australias-newest-producer-65548.html Southern Gold (ASX:SAU) holds the mantle as Australia's newest gold producer from its wholly-owned Cannon Gold Mine, located 35 kilometres east of Kalgoorlie in Western Australia.

The company is on track to generate between $12 million and $15 million of cash in next 18 months.

Mining is at an open pit, with the potential for underground in future years. Drilling is currently looking to extend mine life.

Over 16,000 tonnes of ore was processed at 2.42g/t gold in the first 6 days of the initial treatment campaign, shipping 1125 ounces following a recovery of 89%.

The open pit mine is being financed and operated by development partner Metals X (ASX:MLX) in a profit share arrangement, which after costs are split 50 / 50.

Cannon ore is being processed through Metals X’s Jubilee Mill, 35 kilometres from Cannon by haul road.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 12 Nov 2015 14:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/162299/southern-gold-is-australias-newest-producer-65548.html
<![CDATA[News - Southern Gold and Metals X to benefit from enlarged Cannon gold mine ]]> https://www.proactiveinvestors.co.uk/companies/news/162298/southern-gold-and-metals-x-to-benefit-from-enlarged-cannon-gold-mine-65411.html Southern Gold (ASX:SAU) and Metals X (ASX:MLX) are expected to enjoy about a 270% increase in gold production at the jointly owned Cannon operation in Western Australia after the companies agreed on a pit enlargement scheme.

The project’s “big pit” scenario is planned to combine Southern Gold’s Cannon holdings with Metals X’s recently acquired Georges Reward deposit, allowing for recovery of 48,952 ounces of gold over 19 months at all-in sustaining costs of A$1,130 per ounce.

The operation’s 50:50 profit arrangement between Metals X and Southern Gold will remain in place.

The project’s net cash margin taking into account all costs, including capital, is currently estimated around about $425-$475 per ounce at a gold price of $1575-$1625 per ounce. On an unhedged current pricing basis, this implies a base case cashflow to Southern Gold of around $11-$12 million over the next 12-18 months with plenty of potential upside.

Metals X has also undertaken to provide Southern Gold with a quasi-put option exercisable at Southern Gold’s election whereby a guaranteed price on the first 30,000 ounces of gold production is fixed at a A$25-per-ounce discount to the spot price.

“This is a win-win result for both companies,” Metals X CEO Peter Cook said.

“Metals X is playing banker, using its balance sheet and infrastructure to effect the best result.”

For Southern Gold, the deal unlocks additional high-margin, high-grade gold ore at no cost and with special accommodation by Metals X to assist with working capital and risk management.

Under the agreement, the two companies will share the mining and processing risk, allowing for a maximum outcome at the mine as it phases into a position where it can be considered for underground operations.

Cannon is only 30 kilometres from Kalgoorlie and holds reserves of 56,847 ounces of gold.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 03 Nov 2015 18:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/162298/southern-gold-and-metals-x-to-benefit-from-enlarged-cannon-gold-mine-65411.html
<![CDATA[News - Southern Gold raises funds for gold drilling ]]> https://www.proactiveinvestors.co.uk/companies/news/162297/southern-gold-raises-funds-for-gold-drilling--61318.html Southern Gold (ASX:SAU) has raised $1.05 million through a private placement to fund drilling at the Bulong Gold Project near Kalgoorlie, Western Australia.

The oversubscribed placement of 105 million shares priced at $0.01 each was made to sophisticated investors.

Proceeds will also be used to commence first pass exploration at the Cowarna Project, pay regulatory and tenement conditions.

With this capital raising completed, all of Southern Gold’s near term capital requirements can be met and allows the company to reach positive cash flow from the Cannon Gold Resource by the end of the year.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 18 Mar 2015 16:30:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/162297/southern-gold-raises-funds-for-gold-drilling--61318.html
<![CDATA[News - Southern Gold appoints Simon Mitchell as managing director ]]> https://www.proactiveinvestors.co.uk/companies/news/162296/southern-gold-appoints-simon-mitchell-as-managing-director-60385.html Southern Gold (ASX:SAU) has now appointed Simon Mitchell as managing director, as the company looks to develop the Cannon Project under an agreement with Metals X (ASX:MLM).

Earlier in the month the company announced a 50% increase to the Cannon Project’s forecast free surplus cash flow as grade control and sterilisation drilling commences.

Cannon is located 30 kilometres from Kalgoorlie in Western Australia, and is therefore in a region well supported by existing infrastructure and experienced workforce.

At the time the company said that the project’s PFS free cash flow forecast value reaches A$18.5 million as A$ gold price hits A$1500/oz.

These economics would have improved further in recent weeks, with gold now valued at over A$1600 an ounce.

Southern Gold secured finance for the project in November 2014 through an agreement with Metals X, who will finance and manage all services required for mining, haulage and treatment of ore from the Cannon deposit, for a 50:50 profit share.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 29 Jan 2015 16:30:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/162296/southern-gold-appoints-simon-mitchell-as-managing-director-60385.html
<![CDATA[News - Southern Gold to continue development of Cannon Gold with Metals X ]]> https://www.proactiveinvestors.co.uk/companies/news/162295/southern-gold-to-continue-development-of-cannon-gold-with-metals-x-57287.html Southern Gold (ASX:SAU) will proceed with developing its Cannon Gold Project near Kalgoorlie, Western Australia, with Metals X (ASX:MLX) after Silver Lake Resources (ASX:SLR) waive its pre-emptive right.

This will provide it with a clear pathway to make the transition from gold explorer to gold producer.

Southern Gold will now work with Metals X to finalise a binding Mine Finance and Profit Sharing Agreement.

The original non-binding term sheet had proposed a mine finance and profit sharing agreement to develop and mine the Cannon gold deposit.

Metals X will manage all services required for mining, haulage and treatment of ore from Cannon in accordance with approved budgets and programs.

Operating activities will be charged on an at-cost, open-book basis for the duration of open pit mining and/or underground mining.

Metals X will also provide Southern Gold with a loan facility for $500,000 to fund pre-development costs and regulatory approvals.

Pre-Feasibility Studies had estimated that Cannon could produce 68,200 ounces of gold over a mine life of 36 months and generating free cash flow of $12.4 million.

The project is located 30 kilometres east of Kalgoorlie and includes 30 priority anomalies identified from regional geochemical auger program conducted over the eastern area of the Bulong Gold Project. Six of these have been prioritised.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 02 Sep 2014 08:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/162295/southern-gold-to-continue-development-of-cannon-gold-with-metals-x-57287.html
<![CDATA[News - Southern Gold extends pre-emptive right decision for Cannon Gold project ]]> https://www.proactiveinvestors.co.uk/companies/news/162294/southern-gold-extends-pre-emptive-right-decision-for-cannon-gold-project-57105.html Southern Gold (ASX:SAU) and Silver Lake Resources (ASX:SLR) have agreed to extend the pre-emptive right held by SLR over the Cannon Gold Project near Kalgoorlie, Western Australia, to 29 August 2014.

This allows SLR to complete a thorough review before making a decision to exercise its right to match or match better any third party offer to purchase, treat or sell ore or dore.

The pre-emptive right was trigged after SAU signed a non-binding term sheet with Metals X Limited (ASX:MLX) to finance, mine and process ore from the Cannon deposit.   

This will see Metals X manage all services required for mining, haulage and treatment of ore in accordance with approved budgets and programs.

Operating activities will be charged on an at-cost, open-book basis for the duration of open pit mining and/or underground mining.

SLR can elect to enter into an agreement with SAU on the same terms or provide a set of alternative terms and conditions which are of the same kind of transaction and on equivalent terms as proposed under the Metals X term sheet.

If it elects to waive its pre-emptive right, then Metals X and Southern Gold will finalise a binding Mine Finance and Profit Sharing Agreement to fully document the proposed transaction, based on the agreed terms set out in the term sheet.

Metals X will also provide SAU with a loan facility for $500,000 to fund pre-development costs.

Pre-Feasibility Studies had estimated that Cannon could produce 68,200 ounces of gold over a mine life of 36 months.

The project is located 30 kilometres east of Kalgoorlie and includes 30 priority anomalies identified from regional geochemical auger program conducted over the eastern area of the Bulong Gold Project. Six of these have been prioritised.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 22 Aug 2014 16:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/162294/southern-gold-extends-pre-emptive-right-decision-for-cannon-gold-project-57105.html
<![CDATA[News - Southern Gold forecasts free cash flows to rise by 50% at Cannon gold project, Western Australia ]]> https://www.proactiveinvestors.co.uk/companies/news/162293/southern-gold-forecasts-free-cash-flows-to-rise-by-50-at-cannon-gold-project-western-australia-52799.html Southern Gold (ASX:SAU) has taken another important step towards development of its Cannon Gold Resource, 30 kilometres south-east of Kalgoorlie, Western Australia.

Optimising the 2103 pre-feasibility study, which incorporated industry-wide cost reductions and optimised haulage routes, has resulted in lower forecast operating costs and significantly improved forecast free cash flows.

The key outcome of these changes is a reduction in operating costs to $964 per ounce of gold.

Based on the current mine plan and the reduction in the cost inputs, the forecast free surplus cash flow has jumped over 50%, from $8.02 million to an estimated $12.4 million.

Infrastructure costs remain low at $13.6 million, comprising mainly the 11.7 million underground mine development.

Reductions in operating costs have the added potential to lower the economic cut-off grade of the mine development, possibly increasing the 68,200 ounces of gold established as mineable by the pre-feasibility study.

Project permitting remains on track with the Project Management Plan and Abstraction Licence recently approved, and Cannon's Mining Proposal is in the final stages of preparation.

Also of interest is the fact that SAU's largest shareholder is gold producer Silver Lake Resources (ASX:SLR), capped at $300 million.

SAU is capitalised at $5 million.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 13 Feb 2014 15:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/162293/southern-gold-forecasts-free-cash-flows-to-rise-by-50-at-cannon-gold-project-western-australia-52799.html
<![CDATA[News - Southern Gold raising up to $2 million for Western Australia gold project mining proposal ]]> https://www.proactiveinvestors.co.uk/companies/news/162292/southern-gold-raising-up-to-2-million-for-western-australia-gold-project-mining-proposal-49892.html Southern Gold (ASX: SAU) is raising up to $2 million to fund final works relating to completion of the mining proposal for its Cannon Gold deposit near Kalgoorlie, Western Australia.

Funds will also be used on initial preparation work for site development and follow up drilling of near resource targets.

The company is raising the funds through a three for eight pro-rata non-renounceable rights issue priced at $0.015 per share.

Pre-Feasibility Studies had demonstrated that Cannon could deliver positive economic returns as a toll treatment operation producing 484,000 tonnes at 4.4 grams per tonne, or 68,200 ounces of gold.

This showed that at a gold price of A$1,500 per ounce, Cannon could generate free surplus cash‐flow of A$14.15 million after royalties.

The initial mine life based on the current resource is 3 years, though potential upside exists as the Cannon Resource remains open and untested down‐dip to the west while other exploration opportunities exist within the broader Bulong gold project.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 06 Nov 2013 13:20:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/162292/southern-gold-raising-up-to-2-million-for-western-australia-gold-project-mining-proposal-49892.html
<![CDATA[News - Southern Gold maps out development plan for Western Australia gold project ]]> https://www.proactiveinvestors.co.uk/companies/news/162291/southern-gold-maps-out-development-plan-for-western-australia-gold-project-47334.html Southern Gold (ASX: SAU) has outlined a low-capital cost open pit and underground mining strategy that lays a near-term development pathway for its wholly-owned Cannon Gold Resource near Kalgoorlie, Western Australia.

The recently completed Pre‐Feasibility Study PFS) demonstrates that development of the project as a toll treatment operation delivers positive economic returns for the production of 484,000 tonnes at 4.4 grams per tonne, or 68,200 ounces of gold.

This showed that at a gold price of A$1,500 per ounce, Cannon could generate free surplus cash‐flow of A$14.15 million after royalties.

Infrastructure costs include underground mine development of A$11.7 million, road works of A$1.2 million and costs relating to site facilities and sterilisation drilling of A$0.7 million.

Forecast C1 cash operating costs of A$1051 per ounce include mining, road haulage, processing and Southern Gold direct costs.

The initial mine life based on the current resource is 3 years, though potential upside exists as the Cannon Resource remains open and untested down‐dip to the west while other exploration opportunities exist within the broader Bulong gold project.

The company is currently assessing options for financing the proposed mine development, which is aimed to commence in the first half of 2014.

Cannon is located within Mining Lease M25/333 about 30 kilometres southeast of Kalgoorlie, leaving it within economic haulage distance of several gold processing facilities.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 29 Aug 2013 17:20:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/162291/southern-gold-maps-out-development-plan-for-western-australia-gold-project-47334.html
<![CDATA[News - Southern Gold finds near surface, high grade gold at Bulang in Western Australia ]]> https://www.proactiveinvestors.co.uk/companies/news/162290/southern-gold-finds-near-surface-high-grade-gold-at-bulang-in-western-australia-45457.html Southern Gold (ASX:SAU) has intersected wide near surface gold at Pinner including 9 metres at 5.92 g/t gold from 14 metres, including 7 metres at 7.56 g/t gold, highlighting potential for additional near surface ounces.

Eleven reverse circulation holes were drilled for a total of 780 metres.

The drilling at the Bulong Gold project in Western Australia may enable the current Pinner resource base of 11,500 ounces of gold at 2.1 g/t Au to be increased as well as increase the confidence level of the resource.

The programme targeted areas of known mineralisation at Pinner and Monument and tested new targets to the east and south of Cannon.

All four targets are located within the previously defined “Cannon Trend.”

The best gold intercepts were achieved around the Pinner resource and further to the south‐west at Monument,

Arsenal and Cannon‐south prospect have not previously been RC drill‐tested and results from both the visual logs and assay data (in particular at Arsenal) suggest  similarities to both the structural and mineralisation system of the Cannon Resource.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 11 Jul 2013 14:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/162290/southern-gold-finds-near-surface-high-grade-gold-at-bulang-in-western-australia-45457.html
<![CDATA[News - Southern Gold Bulong project exploration gathers momentum ]]> https://www.proactiveinvestors.co.uk/companies/news/162289/southern-gold-bulong-project-exploration-gathers-momentum-41709.html Southern Gold (ASX:SAU) has identified 20 gold-in-soil anomalies as priority targets at its Bulong Gold project in Western Australia following results from the sub-audio magnetic data.  

Following a regional soil geochemical survey in 2012 Southern Gold had identified 30 prospective gold anomalies as prospective for gold mineralisation.

Several of these gold-in-soil anomalies were of a tenor high enough to rank as priority targets with the remaining anomalies requiring further work.

The SAM survey has provided more extensive insight into the structural architecture of the Bulong area than previously available.

Along with the resource work conducted on the Cannon Gold deposit, the SAM data has added to the understanding of the dilational structure that hosts the Cannon Gold mineralisation.

Drilling of the prioritised first round of anomalies will commence this quarter. The drill programme is planned to test Arsenal, Cannon South and Monument South, and will commence in April pending access approvals and rig availability.

Permit applications will also be submitted for drill programmes over Pinner, Cyprus, Gunnersbury and Limehouse anomalies in preparation for the following quarter.

The Bulong gold project is 30 kilometres southeast of Kalgoorlie and is Southern Gold's primary focus, where it continues to build on the project's maiden discovery, the Cannon Gold resource.

The company has started a pre-feasibility study in relation to developing the Cannon resource, where a resource based of 812,300 tonnes at 3.9 grams per tonne gold for 100,400 ounces has been identified.

The study is likely to be completed by May 2013.

Cash at the end of December quarter was at $2.32 million.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 08 Apr 2013 12:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/162289/southern-gold-bulong-project-exploration-gathers-momentum-41709.html
<![CDATA[News - Southern Gold ups Bulong Gold JV interest to 80% ]]> https://www.proactiveinvestors.co.uk/companies/news/162288/southern-gold-ups-bulong-gold-jv-interest-to-80-38124.html Southern Gold (ASX:SAU) has increased its holding at the Bulong Gold joint venture in Western Australia to 80% following fulfilment of its Stage 2 funding commitment.

With the acquisition of an additional 29% for a total of 80% tenement rights at Bulong South and Bulong East from Heron Resources, Southern Gold can build on its maiden discovery, the Cannon Gold Resource, in the Bulong Gold project area.

The potential for gold discovery in the area, which has primarily been explored for nickel, has been demonstrated vial discoveries made 10 kilometres to the south-east of Southern Gold's tenement boundary by Integra Mining, which made both the Majestic and Imperial discoveries of 280,000 ounce and 43.000 ounce gold find respectively.

Initial work completed under the Stage 1 farm in commitment identified more than 30 prospective gold targets in the Bulong East and Bulong South joint venture areas.

Based on the encouraging results obtained in the Stage 1 exploration, Southern Gold opted to meet the Stage 2 commitment that included a further $500,000 and $120,000 spending on the tenements.

Now with a 80% interest, Heron's 20% interest will be free carried through to the completion of a pre-feasibility study or $8 million cumulative expenditure.

Subsequent to the completion of a pre‐feasibility study both parties will fund the joint venture pro rata. If either party is diluted to less than a 10% interest, that interest will be converted into a 2% net smelter royalty.

Heron Resource will retain rights to nickel laterites at the Bulong East tenement.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 14 Jan 2013 11:20:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/162288/southern-gold-ups-bulong-gold-jv-interest-to-80-38124.html
<![CDATA[News - Southern Gold unearths more high grade gold at Cannon ]]> https://www.proactiveinvestors.co.uk/companies/news/162287/southern-gold-unearths-more-high-grade-gold-at-cannon-33949.html Southern Gold (ASX: SAU) has unearthed further wide, high grade zones of gold within the Cannon deposit, part of the flagship Bulong Gold Project southeast of Kalgoorlie in Western Australia, during recent drilling.

The Cannon deposit is located less than 30 kilometres east of Australia’s largest open cut gold mine, the 850,000 ounce per annum Super Pit. 

Additional results from the latest diamond and reverse circulation program continue to display wide high grade zones including 15 metres at 6.06 grams per tonne (g/t) gold from 5 metres, 2.8 metres at 14.48g/t gold from 130 metres, 9.6 metres at 16.67g/t gold from 137 metres and 7 metres at 11.51 g/t gold from 187 metres.

These new results follow Southern Gold’s highest hit yet of 1.1 metres at 192g/t gold from within a broader 4 metre zone averaging 52.98g/t gold, announced previously.

While this intersection is an outstanding result, it is the broad zone of mineralisation intersected by this and several of the other drill holes that increase the level of confidence of grade throughout the Cannon deposit.

The Cannon resource is currently estimated at 896,000 tonnes at 3.3g/t for 94,500 ounces of gold.

Eleven holes from the 35-hole drilling program intersected a minimum two zones of high grade gold mineralisation.

The drill program aimed to test extensions of the resource to the west (down dip) and to gain additional data to assist in modelling internal ore zone geometry.

Gold mineralisation intersected in two drill holes is anticipated to add to the near surface ounces in any potential mine development.

Further adding to the exploration upside, mineralisation remains open at depth to the west.

With 83% of the Cannon deposit resource already in the higher confidence Indicated category, Southern Gold’s focus is to incorporate these results with preliminary metallurgical, geotechnical and economic studies.

The results from this program will feed directly into the ongoing economic evaluation for mining and toll treatment scenarios of the Cannon deposit, placing Southern Gold firmly on track to assess potential development opportunities.


Resource upside

Southern Gold has identified four priority targets along the Cannon Trend as well as westerly extensions to the resource.

Runge has previously said the shallow, medium grade nature of the mineralisation and the proximity to toll treatment facilities suggests that the project has reasonable prospects for eventual economic extraction.


Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

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Fri, 28 Sep 2012 14:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/162287/southern-gold-unearths-more-high-grade-gold-at-cannon-33949.html
<![CDATA[News - Southern Gold in pre open pending funding program to progress Cannon Gold resource ]]> https://www.proactiveinvestors.co.uk/companies/news/162286/southern-gold-in-pre-open-pending-funding-program-to-progress-cannon-gold-resource-25979.html Southern Gold (ASX: SAU) is looking to progress the Cannon Gold resource and the continuation of the exploration program at the Bulong project in Western Australia, and today has been granted a trading halt by the ASX to arrange funding.

The Cannon Gold resource is particularly interesting, due to its strategic location 30 kilometres from Kalgoorlie, with the company recently placing 27 million shares at $0.05 to Integra Mining (ASX: IGR) to advance evaluation studies.

Integra holds around a 10% stake in Southern Gold.

At the Bulong project, discoveries from reverse circulation drilling towards the end if 2011 included; 6 metres at 9.32g/t gold from 70 metres, 3 metres at 5.69g/t gold from 66 metres, 6 metres at 2.84g/t gold from from 70 metres; and 4 metres at 3.39g/t gold from 102 metres.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Wednesday 7 March.

 

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Mon, 05 Mar 2012 10:20:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/162286/southern-gold-in-pre-open-pending-funding-program-to-progress-cannon-gold-resource-25979.html
<![CDATA[News - Southern Gold reducing Cambodian presence under deal with Mekong Minerals ]]> https://www.proactiveinvestors.co.uk/companies/news/162285/southern-gold-reducing-cambodian-presence-under-deal-with-mekong-minerals-25102.html Southern Gold (ASX:SAU) will enjoy a free carry through three years of exploration expenditure up to US$5.7 million (A$5.3 million) at its Cambodian assets under a farm-in deal with Mekong Minerals, allowing it to focus on its Bulong Gold project in Western Australia.

Under the non-binding term sheet, Brisbane-based Mekong has the exclusive right earn up to 70% stake in Southern’s wholly-owned subsidiary Southern Gold Asia (SG Asia) by spending the funds.

This includes a minimum commitment of US$1 million to be spent within the first 12 months, the interests earned in SG Asia will be earned on a pro-rata basis for each US$1 million expended.

Should Mekong earn a 70% interest in SG Asia, it will have an exclusive 6 month option to acquire the remaining 30% for US$4.5 in cash or share equivalent upon its listing on the ASX.

Southern will retain a 1.5% net smelter royalty interest.

The company’s 2011 drilling program had identified high grade gold intersections at the Gossan and Preak Khlong prospects within the Kratie South project in Cambodia.

Recent highlights include 5 metres at 8.25 grams per tonne (g/t) from 56 metres at Preak Khlong while Gossan had gold assay results of 5 metres at 5.42 g/t from 73 metres, 3 metres at 8.51 g/t from 58 metres, 2 metres at 13.49 g/t from 89 metres and 2 metres at 2.87 g/t from 55 metres.

The company had cash of A$1.2 million at the end of 2011 though it has since raised almost A$1.4 million through a placement of 26.97 million shares priced at A$0.05 each to Integra Mining (ASX:IGR).

This gives Integra a 10% stake in Southern.

Integra has also agreed to support Southern’s proposed non-renounceable pro rata rights issue to eligible shareholders aimed at raising up to A$3 million.

Funds from these raisings will be used to carry out economic evaluation studies at the Cannon Gold resource and continued exploration of Bulong.

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Thu, 09 Feb 2012 13:51:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/162285/southern-gold-reducing-cambodian-presence-under-deal-with-mekong-minerals-25102.html
<![CDATA[News - Southern Gold intercepts 6m at 9.32g/t gold, extends mineralisation at Bulong South ]]> https://www.proactiveinvestors.co.uk/companies/news/162284/southern-gold-intercepts-6m-at-932gt-gold-extends-mineralisation-at-bulong-south-21916.html Southern Gold (ASX: SAU) has intersected gold with all but one hole in its latest drilling program at the Bulong South Gold Project, with results including 6 metres at 9.32 grams per tonne (g/t) gold.

The 22 hole reverse circulation drilling program was designed to define additional gold mineralisation and identify structural trends at the Pinner and Monument prospect areas.

Drilling tested extensions along strike and down dip of the earlier intersections, and showed that the Cannon Trend has the potential to be an extensive mineralised zone.

Of the 21 holes that intersected gold, five holes intersected zones of significant grades and four holes intersected wide, low grade gold mineralisation.

Results returned from the latest program include:

-    12 metres at 0.63g/t gold from 29 metres, including 6 metres at 9.32g/t gold and 1 metre at 52.95g/t gold;
-    3 metres 5.69g/t gold from 66 metres, including 1 metre at 16.52g/t gold; and
-    10 metres at 1.52g/t gold from 102 metres, including 4 metres at 3.39g/t gold.

The western side of the Pinner anomaly is the most prospective part of the zone, with high grade gold mineralisation dipping to the west.

Results from this drilling program have identified continuity to several significant results achieved earlier this year.

They also provide structural and lithological data for Southern Gold to better interpret gold trends and high grade gold zones.

In the March quarter 2012, the company plans to undertake an infill auger sampling program and develop first pass drilling of priority targets.

Southern Gold’s 100%-owned Bulong South is located 35 kilometres south east of Kalgoorlie in Western Australia.

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Fri, 11 Nov 2011 10:32:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/162284/southern-gold-intercepts-6m-at-932gt-gold-extends-mineralisation-at-bulong-south-21916.html
<![CDATA[News - Southern Gold near surface high grade gold hits add to potential at Bulong Project ]]> https://www.proactiveinvestors.co.uk/companies/news/162283/southern-gold-near-surface-high-grade-gold-hits-add-to-potential-at-bulong-project-17259.html Southern Gold (ASX: SAU) has intersected high grade gold from the expanded reverse circulation (RC) drill program recently completed at its 100%-owned Bulong South Gold Project.

The results enhance the potential for adding to resources already in place for the Cannon Trend.

Results include:

- 5 metres at 7.9 grams per tonne g/t gold from 36 metres;
- 4 metres at 5.22 g/t gold from 2 metres; and
- 6 metres at 3.2g/t from 17 metres.

The Pinner and SW Cannon targets are now considered the highest priority gold targets as a result of the shallow gold mineralisation intersected.

Wide zones of low-grade gold mineralisation was also identified in basement rocks at the neighboring Homerton prospect including 35 metres at 0.71 g/t gold.

Importantly, the “strike rates” confirm the highly-promising exploration potential of the Cannon Trend and provides strong justification for follow-up drilling programs to define additional gold resources.

The latest intersections were designed to test gold targets previously identified by an earlier RAB (rotary air blast) drill program at project, located 35 kilometres south east of Kalgoorlie in Western Australia.

Thirty one RC drill holes (totalling 3422 metres) were completed along the Cannon Trend during April 2011.

This trend was originally defined by the high gold in soil values detected by the Company and encompasses the previously announced maiden Cannon Gold Resource, the Arsenal, Pinner, Homerton prospects and extends to the Monument prospect.

The significance of these latest RC drill results is that they have confirmed a broad gold mineralised system that extends beyond the Cannon Gold Resource to Pinner.

The company said follow-up drilling is warranted to define additional gold resources.

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Mon, 20 Jun 2011 16:47:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/162283/southern-gold-near-surface-high-grade-gold-hits-add-to-potential-at-bulong-project-17259.html
<![CDATA[News - Southern Gold old Bulong gold camp shows some new life ]]> https://www.proactiveinvestors.co.uk/companies/news/162282/southern-gold-old-bulong-gold-camp-shows-some-new-life-3708.html Southern Gold Ltd (ASX: SAU) said today that it had received more outstanding drill intersections at its Bulong prospect in Western Australia as a follow up to an earlier hole that produced a wide intersection of medium grade gold.

The new drill hits at Bulong included 66 metres grading 2.9 grams/tonne gold, 42m @ 2.7 g/t and 43m @ 3.4 g/t gold.

The company said it was now targeting mineralised extensions at the Cannon and Monument prospects at Bulong.

Managing director Stephen Biggins said geophysical data suggests that Cannon may connect with the nearby Pinner prospect and may also link with the Homerton and Monument prospects.

The latest drilling will take in RC drilling at Cannon and the identified 550 metre long Monument prospect including a target 50m away which is held as a joint venture.

The new programme will involve at least 12 holes to depths of up to 200m metres with some holes less than 50m metres from the joint funded 66 metre long discovery intersection. First assay results are expected by early January 2010.

While several companies have held ground at Bulong in recent years there have been only limited positive results from generally less aggressive prospecting. The first hope of a renaissance came with a mid 1980s plan to re-open the Queen

Margaret underground gold mine, but this faded with a market slump and a lacklustre gold price.

Then in the 1990s Bulong was one of the three focal points in Western Australia for ambitious pressure oxidation processing of nickel-cobalt laterites but the Bulong project was shortlived, and its costly processing plant was converted by Lionore International - before it was taken over by Norilsk Nickel -- for treating lower grade nickel sulphides.

Mineweb is a web-based international mining publication focusing on mining financial and corporate news and comment.

 

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Wed, 09 Dec 2009 04:52:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/162282/southern-gold-old-bulong-gold-camp-shows-some-new-life-3708.html
<![CDATA[News - Southern Gold in trading halt, significant exploration results pending ]]> https://www.proactiveinvestors.co.uk/companies/news/162281/southern-gold-in-trading-halt-significant-exploration-results-pending-3209.html Southern Gold (ASX: SAU) has requested a trading halt pending an announcement regarding "significant exploration results".

The halt is expected to be lifted by no later than before commencement of trading on Thursday 12 November.

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Tue, 10 Nov 2009 09:53:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/162281/southern-gold-in-trading-halt-significant-exploration-results-pending-3209.html
<![CDATA[News - Southern Gold ties up 51% of Challenger ]]> https://www.proactiveinvestors.co.uk/companies/news/162280/southern-gold-ties-up-51-of-challenger-2728.html Southern Gold (ASX:SAU) has met the initial expenditure obligations under the terms of its joint venture agreement with Dominion Mining (ASX:DOM) and now has a 51% stake in the Challenger Area project in the Gawler Craton region, South Australia.

The Adelaide-based gold explorer spent the required $2 million to earn the majority ownership of Challenger Area from Dominion, a gold producer at the nearby Challenger mine.

If Dominion chooses not to contribute its 49% share of exploration expenditure going forward, then Southern Gold can move to an 80% interest by sinking an additional $2 million into exploration by October 2012.

Southern Gold is currently analysing more than 50 gold anomalies within its 5,000 sq km of exploration tenements surrounding the one million ounce Challenger mine with a view to identifying targets for a planned drilling program next year.

At the more advanced Golf Bore, Mainwood, Typhoon and Monsoon JV prospects, follow-up aircore, RC and diamond drilling is also earmarked for 2010 to test continuity of mineralisation, grade and dimensions of mineralised bodies.

Other than at Golf Bore, none of these prospects has been tested below 60m depth and, according to the company, geological reinterpretation has identified possible high-grade gold mineralised structures.

Stephen Biggins managing director of Southern Gold contended that “exploration results to date around the mine exhibit the potential for significant further discoveries in this proven gold domain.”

Included in the company’s Challenger Area exploration landholdings are some wholly owned tenements.

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Thu, 01 Oct 2009 11:13:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/162280/southern-gold-ties-up-51-of-challenger-2728.html
<![CDATA[News - Southern gold to define geothermal resource in South Australia ]]> https://www.proactiveinvestors.co.uk/companies/news/162279/southern-gold-to-define-geothermal-resource-in-south-australia-1375.html Southern Gold Limited (ASX:SAU) has commenced work towards establishing a Geothermal Resource estimate within GEL 302 in South Australia. The tenement forms part of the Torrens Geothermal Project which comprises 4 GELS and 18 GELAs and covers an area of 10,000km2 over one of Australia’s largest geothermal hotspots.

Independent experts and industry consultant Hot Dry Rocks Pty Ltd (“HDR”) has been contracted to complete a geothermal resource assessment over GEL 302. The resource reported by HDR will be compliant with the Australian Code for Reporting of Exploration Results, Geothermal Resources and Geothermal Reserves (2008 edition).

High heat flows averaging 94mW/m2 are already established from temperatures and thermal conductivities for two of Southern Gold’s mineral exploration holes drilled to 1,000m depth in GEL 302.

HDR has already confirmed that the heat flows measured by Southern Gold provide an encouraging basis to progress investigations towards the commercial development of an Engineered Geothermal System (EGS).

Southern Gold has one of the largest strategic geothermal land holdings in an area that hosts growing energy markets including the world‐class Olympic Dam and Prominent Hill mines. The proposed Olympic Dam expansion is forecast to consume close to half of the State’s power supply.

The Torrens Geothermal Project is also strategically located to straddle the 275Kv and 132Kv power lines that connect Olympic Dam and Prominent Hill mines to the national power grid at Port Augusta.

The potential economics of the Torrens Geothermal Project are built around the proximity of commercially viable insulated hot rocks to high voltage power distribution infrastructure and nearby market demand.

The excellent infrastructure combined with reliable energy supplies contributes to the continued and sustained project development and production economics of the region. 

Southern Gold’s goal is to establish a commercially viable EGS in the area.

Southern Gold is considering financing and management alternatives for the future development of the Torrens Geothermal Project that will maximise its value to Southern Gold.

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Mon, 04 May 2009 08:04:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/162279/southern-gold-to-define-geothermal-resource-in-south-australia-1375.html
<![CDATA[News - Southern Gold commences drilling for gold, base metals in Cambodia ]]> https://www.proactiveinvestors.co.uk/companies/news/162278/southern-gold-commences-drilling-for-gold-base-metals-in-cambodia-0933.html Southern Gold (ASX:SAU) has advised that the Company’s maiden reverse circulation (RC) drilling campaign has commenced on its Cambodian gold and base metals tenements.

The objective of Southern Gold’s first RC drilling program in Cambodia is to confirm the scale and grade of gold and base metal mineralisation identified at surface through work undertaken over the last few field seasons by Southern Gold. Additional drill targets are expected to be prioritised as results are received from current trenching exploration programs.

The RC drilling campaign on the joint venture tenements is fully funded by the Japanese Government‐backed JOGMEC pursuant to a Joint Venture agreement whereby JOGMEC can fully fund exploration activity to a total of US$4.5 (~A$7) million over 3 years to earn a 51% interest in three tenements – Phnum Khtong (Kratie North Project), and two adjoining blocks, Preak Khlong and O’Kthung (Kratie South Project), all to the northeast of Phnom Penh. Southern Gold will fund a small drill programme on its 100% owned Anchor Prospect.

Key targets of the current programme are summarised as follows:

Oh Tron Prospect – Kratie North JV

Six RC drillholes totalling 400m are following up trench gold intersections including 32m @ 2.7g/t gold, and also targeting multiple gold, arsenic and copper anomalies over a 1,000m x 3,000m area defined by detailed soil sampling. Additional trenching activity is currently underway on this prospect area which will further define drill targets.

Central Prospect ‐ Kratie North JV

Three RC drillholes totalling 320m are targeting zinc, nickel & copper soil anomalies over an area of 2,000m x 3,000m associated with a layered mafic intrusive identified by Southern Gold’s detailed airborne magnetic surveys in 2008.

Anchor Prospect – Snoul EL (SAU 100%)

A total of 400m of RC drilling is targeting the source of significant gold trench intersections, including 32m @ 0.22 g/t gold, 8m @ 2.8g/t and 16m @ 0.8g/t.

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Mon, 02 Mar 2009 00:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/162278/southern-gold-commences-drilling-for-gold-base-metals-in-cambodia-0933.html