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Market:	ASX
Sector:	Gold Mining
EPIC:	SAU
Latest Price:	0.04 (0.00%)
52-week High:	0.10
52-week Low:	0.04
Market Cap:	9.94M

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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 old Bulong gold camp shows some new life

Wednesday, December 09, 2009 by Ross Louthean, Mineweb.net

Southern Gold Ltd (ASX: SAU) said today that it had received more outstanding drill intersections at its Bulong prospect in Western Australia as a follow up to an earlier hole that produced a wide intersection of medium grade gold.

The new drill hits at Bulong included 66 metres grading 2.9 grams/tonne gold, 42m @ 2.7 g/t and 43m @ 3.4 g/t gold.

The company said it was now targeting mineralised extensions at the Cannon and Monument prospects at Bulong.

Managing director Stephen Biggins said geophysical data suggests that Cannon may connect with the nearby Pinner prospect and may also link with the Homerton and Monument prospects.

The latest drilling will take in RC drilling at Cannon and the identified 550 metre long Monument prospect including a target 50m away which is held as a joint venture.

The new programme 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.

While several companies have held ground at Bulong in recent years there have been only limited positive results from generally less aggressive prospecting. The first hope of a renaissance came with a mid 1980s plan to re-open the Queen

Margaret underground gold mine, but this faded with a market slump and a lacklustre gold price.

Then in the 1990s Bulong was one of the three focal points in Western Australia for ambitious pressure oxidation processing of nickel-cobalt laterites but the Bulong project was shortlived, and its costly processing plant was converted by Lionore International - before it was taken over by Norilsk Nickel -- for treating lower grade nickel sulphides.

Mineweb is a web-based international mining publication focusing on mining financial and corporate news and comment.

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