Join our daily newsletter At The Bell to receive exclusive market insights
- Southern Gold (SAU) is up more than 55 per cent this morning after drilling continues at the Beopseongpo Project in South Korea
- Drilling is continuing at the Hand of Faith prospect which is the primary area of focus
- A second rig is planned to be sent to the Spider Zone prospect and drilling is expected to begin in 2-3 weeks
- Southern Gold has also identified a new project area called Golden Horse
- This area has extensive quartz veining and sulphide mineralisation
- Southern Gold is currently up a significant 55.6 per cent with shares trading for 14 cents each
Southern Gold (SAU) is up more than 55 per cent this morning after drilling continues at the Beopseongpo Project in South Korea.
Drilling is continuing at the project as planned, with the Hand of Faith target being the primary focus of drilling at this stage.
Diamond drill hole BPDD011 has just been completed for 202.4 metres. The rig has moved to the next hole, BPDD012, and drilling has begun.
Drilling is progressing at a rate of approximately 20-25 metres per day with recoveries of more than 95 per cent.
The program is approximately 1200 metres and will take 4-6 weeks to complete.
Hole BPDD011 intersected a deeper intersection of what has been previously identified as sulphide epithermal veining.
This hole is being logged and sampled and the assay results are expected in mid-April.
A second rig is currently in the process of being mobilised to Beopseongpo and is expected at the Spider Zone with drilling to begin in 2-3 weeks.
This is several months earlier than planned and reflects the work done by the Korean team in terms of securing site access approvals with the drilling contractor.
Southern Gold also identified a new project area called Geum-Mar, which means Golden Horse in Korean.
This project is a historic metal quarry that is now abandoned which has extensive limonite-kaolinite alteration and extensive quartz veining.
Sulphide mineralisation has also been identified.
This area has now been covered by Southern Gold tenements and assay results from surface sampling are expected in 2-3 weeks.
“The team has been operating very effectively on the ground with good drilling progress at the Hand of Faith target at Beopseongpo, with a further drill rig to commence drilling at the Spider Zone shortly and our project generation team uncovering a new and exciting area called Golden Horse,” Managing Director Simon Mitchell commented.
“This is just the start of what should be a very exciting 2020 as we ramp up things in country. We await with interest assay results from Geum-Mar in the coming weeks and from the drilling a little later,” he added.
Southern Gold is currently up a significant 55.6 per cent in mid-morning trade with shares trading for 14 cents apiece at 11:27 am AEDT.
