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Southern Gold identifies high-grade gold and multiple vein zones at Neungju project

The company’s Korean team will hold discussions with local landowners to enable drilling to begin as soon as possible at the project.

Southern Gold Limited - Southern Gold has obtained high-grade gold results and identified multiple vein zones at the Neungju Project
Drilling at Lotus North within the Beopseongpo project in South Korea

Southern Gold Ltd (ASX:SAU) has received high-grade gold assays from surface rock chip and float sampling as part of a detailed mapping exercise at the Neungju project in South Korea.

The new assays returned a peak of 31.8 g/t gold and 6.6 g/t silver in sub-crop and 13.4 g/t gold and 13.1 g/t silver in float.

This field program also resulted in the identification of five epithermal veined zones, ranging from 2-100 metres wide with interpreted combined strike continuity of 1-kilometre

Following the initial first pass work previously reported last year, five corridors of sheeted and network vein development have been tentatively mapped within the area: Naesin, Oesin, Yeppeuda, Lee Spur and Jidong vein corridors.  

All five vein corridors have returned samples of more than 1 g/t gold.

Managing director Simon Mitchell said: “These latest high-grade gold results continue to validate our project generation work that has been undertaken to date in South Korea.

“We are building a significant and very high-quality ‘drill ready’ portfolio while continuing to make new gold mineralised discoveries with each completed field program.

“Our 100%-owned Neungju project target area has now expanded with these latest results and in an area which, to our knowledge, has never been previously drilled.

“Southern Gold’s technical team continues to believe that there is more to be found at district scale at Neungju into the medium term, but for now the project is added to our ‘drill ready’ list.”

An intensive sampling program was completed at Neungju with more than 130 new samples being taken and submitted for analysis.

Two outcrop rock chip and three float samples returned high-grade results with the peak outcrop rock chip sample returning 31.8 g/t gold and 6.6 g/t silver.

The results of completed, semi-detailed geological mapping and surface sampling to date indicates that Neungju has the potential for the discovery of a large, potentially highly gold-silver mineralised low-sulphidation epithermal deposit.

The project requires further field exploration to reveal its true extent, however, the potential exists for the discovery of further vein sets between those already mapped, especially along the northern flank of the dacitic to rhyodacitic wedge.

Next steps

The company is drilling at Beopseongpo and is planning to drill at the Deokon Golden Surprise trend once local landowners and other stakeholders have been fully informed of developments.

Neungju project is about 280 kilometres south of Seoul in Yeongdong Province and around 180 kilometres SSW of the major city of Daejeon, where Southern Gold operations are based.

Quick facts: Southern Gold Limited

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Market Cap: $20 m

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