Southern Gold Ltd (ASX:SAU) (FRA:UH4) is going all-in on its unique one-country mining strategy, with drilling for gold and silver ongoing at seven projects across South Korea.
The company’s stated focus is to discover high-grade gold and silver deposits in South Korea, deploying a team of local Koreans targeting epithermal gold-silver – precious metals formed from hydrothermal fluids at shallow levels in the Earth’s crust.
It is actively exploring seven projects in South Korea, all well south of Seoul: Aphae, Weolyu, Deokon, Beopseongpo, Hampyeong, Dokcheon and Neungj.
On top of these, it has also made three new discoveries - Janghwal, Geum Mar and Daeam Valley - with initial assessments revealing that all three hold significant potential ahead of scout drilling to be undertaken in the first half of this year.
Current drilling program
Southern Gold is actively drilling at Aphae, conducting second-round drilling after a successful first round completed last year.
In the maiden drilling program, Southern Gold confirmed broad near-surface gold-mineralised breccia rocks and high-grade gold, with results highlighted by:
- 0.21 metres at 107.5 g/t gold and 166 g/t silver;
- 0.17 metres at 15.9 g/t gold and 23.7 g/t silver;
- 1-metre at 5.07 g/t gold and 13.8 g/t silver;
- 0.86 metres at 5.49 g/t gold and 59 g/t silver; and
- 0.18 metres at 5.92 g/t gold and 99 g/t silver.
Late last year, following these results, Southern Gold also conducted an innovative drone-based magnetic survey at Aphae, which unveiled a magnetic low trend along strike of first-round drilling, interpreted to be a continuation of the mineralised structure.
Excitement at Geum Mar and Deokon
In a new presentation this week, Southern Gold highlighted the exciting potential at Geum Mar and Deokon projects - no previous drilling has been undertaken at either target.
Deokon has two new targets, Nettle and Thistle, with a peak outcrop sample returning 8.56 g/t gold and 9,260 g/t silver at Nettle, while at Geum Mar a new vein outcrop has been discovered at Golden Horse returning 3.88 g/t gold with a nearby float sample of 24 g/t gold.
Sales interest
Southern Gold is also looking to offload its Gubong and Kochang joint venture with Bluebird Merchant Ventures Ltd (LON:BMV) - in November Bluebird elected to purchase it from Southern Gold in full, but the window for purchase has lapsed.
The company is ready and willing to complete the sale and purchase of its JV interests and in late January BMV emailed a letter outlining, in general terms, alternative means by which the sale and purchase may be settled.
Southern Gold intends to consider these proposals and to maintain an open dialogue with BMV to see whether an acceptable agreement may be reached, telling investors that it expects to complete the sale by the end of June.
- Daniel Paproth