Sign up Australia
Proactive Investors - Run By Investors For Investors

Southern Gold Ltd develops a taste for South Korean gold

Southern Gold Ltd develops a taste for South Korean gold

Southern Gold Ltd (ASX:SAU) has executed a binding agreement to acquire a Singaporean registered company that owns 44 granted tenements across 17 project areas in South Korea.

The Kalgoorlie Cannon Gold mine producer, will pay $116,000 cash, assume $70,000 in liabilities and 6.3 million shares in Southern worth about $2.1 million.

While there is a portfolio of 17 project areas in South Korea, 6 projects stand out.

One of the projects, Weolyu, is in a district yet to see a single drill hole, but where rock float sampling at surface returned 17.6 g/t gold and 820 g/t silver. Clearly, this is a priority drill target.

Even better, the quest has the support of government-backed Korean Resources Corporation (KORES) for drilling.

At least four of six highest priority targets will be drilled within 18 months with first drilling within two months.

The Gubong project is situated in an area which hosts the 2nd largest gold mine in Korea with more than 400,000 ounces of gold produced.

Southern’s portfolio of projects in Korea has an indicative exploration target range of up to 1.5 million ounces of gold at grades possibley between 6 g/t and 12 g/t gold.

So there are prospective greenfield epithermal gold targets on offer in an under-explored area.

The company is planning to undertake a $1.2 million cornerstone placement to three shareholders of the vendor Asiatic Gold Ltd at $0.35 per share, an 18% premium to its 20-day volume weighted average price.

Southern Gold has has produced 12,074 ounces of gold to date at the Cannon Gold Mine.

Mining partner Metals X (ASX:MLX)  was contracted to carry out all mining, haulage, and processing activities at the site. The ore is processed at Metals X's Jubilee mill facility, located 35 kilometres southwest.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

View full SAU profile View Profile

Southern Gold Ltd Timeline

Related Articles

cement mixer
June 04 2018
Pozzolan, and CS in particular, have become the most important area for the group
Picture of Emmerson's managing director and mining team
January 28 2018
Deposits in the Macquarie Volcanic Arc are often part of much larger systems.
October 03 2018
The company has a 33% interest in highly-rated German potash assets, 7.3 million Lithium Australia NL (ASX:LIT) shares and prospective greensands tenure in Western Australia.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use