Southern Gold Ltd (ASX:SAU) (FRA:UH4) substantial holder Ilwella Pty Ltd has increased its stake in the company to 16.29% from 12.28%.
This follows three share purchases made this year and valued at $35,566.63, $16,519.22 and $900,000 respectively.
Sydney-based Ilwella and associated entities now hold 36.7 million shares in the South Korean explorer.
Deokon Project advances
The company has been advancing its Deokon project in South Korea along strike of mineralised zones, resulting in the discovery of the Thistle and Nettle zones as well as the extension of the Golden Surprise trend to a strike length of at least one kilometre.
A soil sampling grid over the trend has revealed a strong gold-silver-arsenic anomaly at Nettle, which potentially indicates the presence of an intersecting structural position of the north-northwest Golden Surprise trend with a north northeast trend.
The best result was 1.77 metres at 0.99 g/t gold and 73 g/t silver, with low-grade mineralisation occurring over wide (up to 5 metres) intervals.
This is highly encouraging, given that it is interpreted to be high in the epithermal system, based on the chalcedonic vein textures and argillic alteration assemblage.