Southern Gold Extends Golden Surprise Au-Ag Trend In South Korea

Confirms New Discoveries At Deokon Project

A high level of recent field activity by Southern Gold (ASX:SAU) has advanced the Deokon Project (100% SAU) in South Korea along strike of known mineralised zones.

 This has resulted in the discovery of the Thistle and Nettle zones, which has extended the Golden Surprise Trend to a strike length of at least one kilometre.

A soil sampling grid over the trend has revealed a strong Au-Ag-As anomaly at Nettle, which potentially indicates the presence of an intersecting structural position of the NNW Golden Surprise trend with a NNE trend.

In addition, a series of four channel saw lines using a hand- held brick saw were taken across the outcrop at the Nettle Zone, where a previous outcrop rock chip sample returned 8.56g/t gold and 8,940g/t silver (re-assay of previously announced result of 9,260g/t silver).

Drill testing is planned straight away once regulatory approvals are gained, likely in late April.

The soil sampling programme was designed to follow up the orientation program completed in late 2020. A total of 221 samples were collected along the Golden Surprise Trend and was completed over the Bonanza North, Thorn, Thistle and Nettle zones. Sampling was completed at 25m spacing on 25m and 50m spaced lines.

 Bulk samples were taken of the B-horizon and sieved in the laboratory to <6 mesh (~3mm). The program clearly identifies a coincident Au-As trend along the Golden Surprise trend and also a coincident Au-Ag-As anomaly at Thorn and Nettle zones. This programme revealed the intersecting structural position of the NNW Golden Surprise trend with a NNE trend at Nettle, which is a compelling structural position and drill target.

In addition, channel saw samples were taken across the Nettle outcrop. DKCH_001 to 004 were taken perpendicularly across hydraulically brecciated, quartz ±sulphide veined and silica-illite-adularia-pyrite altered rhyolitic tuff outcrop.

The outcrop is approximately 9 x 9m in dimensions where veining within the structural zone exposed is sheeted and of moderate to low vein density. Minor amounts of carbonaceous volcanogenic sediments are apparent, and it is interpreted that the outcrop is near the contact of the overlying felsic tuff and the underlying volcanogenic sediments. The highest grades were reported on the footwall margin of the structure (western edge) before it disappeared below cover.

Peak result was 1.77m @ 0.99g/t Au and 73g/t Ag , with low-grade mineralisation occurring over wide (up to 5m) 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.

Managing Director, Simon Mitchell, said Deokon has been a growth project since the initial tenements were granted in 2018. Deokon represents a typical ‘case-study’ methodology into how a South Korean Project can evolve, which is outlined below. Southern Gold was initially drawn to the area based on historical mine workings, high silver grades and the prospective geological location, coupled with what was noted in the historical data compilation and analysis. Initial reconnaissance sampling was then completed which verified the prospectivity of the area.

“Southern Gold takes the approach of high-quality, effective drilling programs. If the initial scout drilling does not reveal the right textures or potential for epithermal mineralisation, then the focus and energy will move onto other areas or Projects,” Mr Mitchell said.

“Therefore, each Project in South Korea can be thought of as a ‘Prospect’ in an Australian exploration context. Southern Gold continually evaluates and ranks each target in the portfolio based on new work and results and is agile enough in-country to work on multiple exploration programs (surface, soils, drilling) in multiple areas at the same time or one after another.”

“We have persevered with the Golden Surprise trend at Deokon as we are uncovering widespread gold and silver mineralisation on surface, both in rocks and soils, on kilometre scale. We look forward to drilling the Nettle zone to see if we have the right structure and lithological trap that will give us a chance of discovering an economic deposit. Our greenfields play in South Korea remains a very exciting one.”