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Southern Gold Limited (ASX:SAU) RAB Drilling Identifies Near Resource Gold Mineralisation

RAB Drilling Identifies Near Resource Gold Mineralisation
 
5 High Priority Gold Targets Identified Along Cannon Trend
 
- 5 high priority gold exploration targets identified along the Cannon Trend, all within 1km of the Cannon Gold Resource, at 100% owned Bulong South Project
- First pass exploration drill results include 4m @ 4.37g/t Au, 12m @ 2.22 g/t Au and 14m @ 1.03 g/t Au across a number of target areas
- Results confirm the gold exploration potential indicated by previous soil sampling results
- Many drill holes ended in gold mineralisation and will be followed up further with deeper RC drilling
- Follow up RC drill programmes to test priority gold targets
- Results demonstrate Southern Gold’s near-term objective at the Bulong South Project is on track
 
Southern Gold Limited (“Southern Gold” or “the Company”) (ASX: SAU) is pleased to announce that results of the recently completed RAB drilling at its 100% Bulong South Gold Project have provided increased confidence for the delineation of new gold resources along the Cannon Trend. Drilling has delineated five high priority gold targets located immediately adjacent to Southern Gold’s 80,000oz Cannon Gold Deposit (Figure 1 of the ASX announcement)[see SAU September quarterly for details of JORC resource].
 
The five high priority gold targets within the Cannon Trend will be the focus for RC Drilling programmes targeted to commence in on coming months. Table 1 shows the significant intersections received from these high priority areas.
 
The Cannon Trend is situated approximately 35 km south east of Kalgoorlie and within economic haulage distance of approximately five nearby processing facilities operated by existing gold producers (Figure 2 of the ASX announcement).
 
The principle aim of the RAB programme (168 holes, total 5,201m) was to test significant soil anomalies along the 1km strike length of the south-westerly orientated Cannon Trend that is host to the Cannon Deposit and the Pinner, Homerton and Monument prospects. RAB drilling also completed the first drill tests of a number of regional soil anomalies.
 
The Cannon Trend was originally defined by the high gold in soil values detected by Southern Gold and encompasses the Cannon Gold Resource, Arsenal prospect, Pinner prospect, Homerton prospect and extends to the Monument prospect (Figure 1). Although previous work programmes had discovered isolated RC drill intersections of gold along the Cannon Trend, this RAB programme revealed the orientation of these gold hits and has demonstrated that the gold mineralisation is more consistent and widespread than previously understood.
 
Commenting on these results, Southern Gold’s Managing Director, Nanette Anderson, said “Southern Gold is encouraged by these results as they highlight the potential to define additional ounces around the Cannon Gold Resource and along the Cannon Trend. These results demonstrate the significant prospectivity of the Cannon Trend, and potential for the Pinner, Homerton and Monument prospects (Figure 1 of the ASX announcement) to host similar gold mineralisation to that discovered and delineated by Southern Gold at Cannon.”
 
The intersections in holes BSR191 (West Pinner) and BSR181 (South Homerton) are of particular interest because they contain significant widths of gold mineralisation (>10m @ >1.0g/t Au) and were collared in areas of the Cannon Trend that have no gold in soil anomalism. This suggests that there is greater scope for finding gold mineralisation in the Cannon Trend that has no surface expression but is discoverable by interpretation of geophysics and mapping.
 
In addition to the five high priority targets defined along the Cannon Trend, Southern Gold’s first project wide regional drilling programme intersected low levels of gold at the Arsenal prospect, the Mudchute prospect (M25/183) and at the Railway prospect (E25/250 JV with Heron Resources Ltd) (Figure 3 of the ASX announcement). Further work will be undertaken on these prospects to test the potential for higher gold grades at depth or along strike.
 
Southern Gold will commence detailed interpretive work of the 5 high priority targets in context with all geological, geochemical and geophysical data. This work will assist the positioning of follow up RC drilling of the high and regional priority targets.
 
In addition, Southern Gold looks forward to releasing assay results from the recent RC drilling programme in the coming days. 
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