Stand Out Exploration Results from Bulong South Gold Project, WA.
- Best RC drill results from 12 holes include:
- 22 m @ 10.05g/t Au (from 105m depth)
- 11m @ 9.75g/t Au (from 166m depth)
- 5m @ 12.26g/t Au (from 170m depth); and
- 4m @ 15.73g/t Au (from 103m depth)
- High grade gold mineralisation has been intersected outside the current Cannon Gold Resource envelope. The results show:
- a more consistent and broader extent to the high grade zone of the existing
Cannon Gold Resource than originally estimated;
- the resource remains open down dip
- To date, the current vertical depth of Cannon Gold Resource envelope remains relatively shallow, extending from surface to only 180m depth.
- Results provide encouragement for a future upgrade and increase to the existing
Cannon Gold Resource.
- Upcoming drill programmes will target the continuity of the higher grade mineralisation and test for extensions to the system as outlined so far.
Bulong South Gold Project, Western Australia High Grade RC Drill Results
Southern Gold Limited ("Southern Gold" or "the Company") (ASX: SAU) is pleased to announce that assay results, from its 100% Bulong South Gold Project (35 km south east of Kalgoorlie), confirm that the recent infill and extensional RC drill programme at the Cannon Gold Deposit has successfully identified a westerly dip extension of high grade gold mineralisation and also provided positive infill data to increase and improve resource definition.
Of primary significance are the results received from 4 holes drilled approximately 2030 metres to the west of the currently defined Cannon Gold Resource (Figure 1 in the ASX announcement).
The high grade portions of these 4 drill hole intersections include:
- 22m at 10.05g/t gold
- 11m at 9.75g/t gold
- 5m at 12.26g/t gold
- 4m at 15.73g/t gold
These 4 drill holes intersected high grade gold mineralisation, over an approximate strike length of 100 metres. Previously this high grade zone was interpreted as a narrow shoot, but the recent drill hole data shows consistent intersections of high grade gold mineralisation, suggesting a more persistent and broader extent to the high grade zone (Figure 2 in the ASX announcement).
The latter three of these four drill intersections fall within broad (up to 35m) mineralised gold zones. In addition to the extension of the high grade zone, assay results from the infill drill holes show further significant gold grades within the Cannon Gold Resource [see Table 1 of the ASX announcement].
This drill programme has effectively and efficiently achieved its objectives of:
1. Testing the westerly down dip extension of the high grade zone in the Cannon Gold Resource, targeting an increase in the existing JORC compliant Resource;
2. Providing infill drill data to assist with the revision of the JORC compliant Resource estimate, to bring more tonnage into the Indicated category from the broader spaced Inferred category; and
3. Collecting samples for preliminary metallurgical and geotechnical test work.
The results received are part of an RC/Diamond drilling programme consisting of 12 RC holes (totalling 1809m), 2 RC holes with diamond tails (totalling 321m) and 1 diamond core hole which was drilled from surface to 90m. Results from the 12 RC holes have been received (Figure 1 of the ASX announcement), while results are pending for the 3 cored holes.
Commenting on the results, Southern Gold's Managing Director Nanette Anderson stated:
"I joined Southern Gold three months ago as Managing Director, primarily on the strength of the previous Cannon results. Intersections of 15m @ 9g/t Au, 26m @ 4g/t Au and 21m @ 3.68g/t Au
I thought looked exciting. With the current round of drill results returning the best intersection to date, and providing excellent results outside of the current resource envelope, the excitement continues to build."
"In less than 18 months since the discovery of Cannon, Southern Gold has proven up a first stage resource of ~80,000oz gold (at a grade of 3.1g/t Au), the resource is open down dip and this drill programme has produced high grade results outside of the current gold resource, and shown a consistency developing within the high grade zone which is all very encouraging. All of this situated just 30km south east of Kalgoorlie (WA) and within economic haulage distance of approximately five nearby gold processing facilities (Figure 3 of the ASX announcement)."
The Cannon Gold Deposit is the first of several gold occurrences, in Bulong South Gold Project, to be RC drill tested in detail. The discovery of broad high grade gold zones at the Cannon Resource raises the importance of the recently announced RAB gold intersections that identified 5 high priority targets within the Cannon Gold trend. Upcoming drill programmes will systematically test these gold anomalies with the conviction that the area is highly prospective for the discovery of similar high grade Cannon Gold ore bodies. In addition Southern Gold will test the continuity of the higher grade mineralisation defined at the Cannon Resource and for extensions to the broader mineralising system.
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