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Market:	ASX
Sector:	Gold Mining
EPIC:	SAU
Latest Price:	0.04 (7.32% )
52-week High:	0.10
52-week Low:	0.04
Market Cap:	10.66M

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Southern Gold

Southern Gold (ASX:SAU) is focussed on gold, nickel and base metal exploration in Australia and Cambodia.

Southern Gold expands drill campaign at Bulong South Project

Tuesday, December 08, 2009

Southern Gold (ASX: SAU) has announced an expanded drill campaign to extend the recent large gold intersection stretching 66 metres at the Company’s wholly‐owned Bulong South Project, located 30km southeast of Kalgoorlie in Western Australia.

The 2,000 metre Reverse Circulation schedule on the developing Cannon‐Georges Reward gold targets follows outstanding gold drill intersections of 66m @ 2.9 g/t, 42m @ 2.7g/t and 43m @ 3.4 g/t gold from the recent joint funded drilling program on a Bulong South tenement boundary common to Southern Gold and Northern Mining (ASX:NMI).

The new program will involve at least 12 holes to depths of up to 200m metres with some holes less than 50m metres from the joint funded 66 metre long discovery intersection. First assay results are expected by early January 2010.

The drilling aims particularly to define the extent of mineralisation on Southern Gold’s 100% owned Cannon Prospect immediately south of the joint venture boundary drilling, and has been planned with the benefit of the detailed drill data obtained in the joint funded drilling program.

Interpretation of recently acquired ‘SAM’ geophysics data suggests that the gold mineralisation at Cannon lies on a southwesterly trending structure that connects to the Pinner prospect and potentially further southwest to the Homerton and Monument prospects.

It is also interpreted that a cross‐cutting set of northwesterly structures, that parallel the Monument trend, may improve the grades of gold mineralisation along the southwest structure.

In addition to the Cannon schedule, RC drilling is planned for the 550‐metre long Monument prospect where earlier drill programs by Southern Gold intersected good gold intervals (BSRC072 14m @ 2.11g/t).

This work also revealed geological continuity of the southeasterly trending mineralised shear zone to what was previously thought as isolated and discontinuous mineralisation. This additional new program will confirm the continuation of gold grades at depth and will explore for extensions along strike beyond current drilling.

Drilling at Cannon and Monument will provide early directional controls on the substantial gold bearing structures at Bulong South and which will also be explored by surface geochemistry, RAB drilling and further RC and diamond drilling early in 2010.

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