RC/Diamond Drilling Commences at Southern Gold’s Bulong South Project
Southern Gold’s Share Purchase Plan Closes Today, 3 December 2010
- RC/Diamond drilling programme underway at Bulong South
- RAB results expected later this month/early Jan from recent drilling along the Cannon Trend and on 3 regional targets at Bulong South
- RC/Diamond drilling programme underway in Cambodia
- Share Purchase Plan Offer closes today, 3 December 2010
BULONG SOUTH PROJECT
RC/Diamond Drilling Programme
Southern Gold Limited ("Southern Gold" "the Company") (ASX:SAU) is pleased to advise that an reverse circulation (RC) and diamond drilling programme has commenced at the Bulong South Project, located 35km south east of Kalgoorlie.
The RC and diamond drilling will target extensions to the Cannon Resource and continuity of the mineralised intersections achieved earlier in 2010 (including 15m @ 9.55g/t Au) and will also provide valuable drill core data. RC samples and diamond drill core will be sent to laboratories to conduct standard assays and also initial geotechnical and metallurgical test work, with results expected in the new year.
RAB Drilling Programme (Bulong South Project)
Samples,from the recent RAB drilling programme at Bulong South, which tested gold soil geochemical anomalies along the Cannon trend targets 3 regional targets, are being prepared and sent to the laboratory for testing. Results expected in late December/early January.
CAMBODIA
Kratie South Project
Access to the Kratie South Project (Preak Khlong and O'Khtung Tenements) commenced on 27 November 2010 (using one bulldozer). Locating and preparation of the 20102011 proposed drillholes has commenced. This RC/diamond drilling programme is expected to commence in mid
December 2010 and continue through to end of January 2011.
Snoul Project
Field clearances, access tracks, drill pad preparation, camp setup and drilling commenced at the
Anchor prospect on the Snoul tenement on 26 November 2010.
Gold mineralisation at the Anchor Prospect is associated with quartz/sulphide veins hosted in silicified metasediments and intrusive diorite. Southern Gold believes a cluster of intrusives at the Snoul Project within a 10km x 10km area of the Anchor Prospect is prospective for intrusive related epithermal gold vein systems.
It is anticipated that drilling of the Anchor prospect will take approximately two weeks. Australian company, ALS laboratories is currently establishing a sample preparation laboratory in Phnom Penh, Cambodia. This will allow sample preparation of Southern Gold drill samples to be completed in Cambodia and will reduce transport costs and improve the turnaround time for assay results.
Share Purchase Plan Closing Date Today, Friday 3 December 2010
Southern Gold is currently offering a Share Purchase Plan to eligible shareholders (Offer). The Offer is scheduled to close today at 5pm (Adelaide Time) Friday 3 December 2010.
The Share Purchase Plan is an offer by Southern Gold Limited to all eligible shareholders at the record date of 5pm (Adelaide Time) Wednesday 10 November 2010.The new shares will be issued at 6.8 cents per share which is the same issue price as the recent placement to sophisticated and professional investors, raising ~ $3 million.
The SPP funds, together with monies raised from the previously announced share placement, will ensure that Southern Gold remains well funded to actively progress exploration at the Bulong South Project and to a lesser amount, progress exploration across its other gold projects. This is where systematic exploration has the greatest potential to discover economic gold deposits and thereby increase shareholder value.
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