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Southern Gold raising up to $2.3 million to advance South Korean gold-silver opportunities

South Korea is a relatively unknown jurisdiction with a long history of gold mining that has seen very little modern exploration or recent mine development.
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Potential for near-term high-grade gold-silver deposit discoveries

Southern Gold Ltd (ASX:SAU) is undertaking a non-renounceable pro-rata entitlement offer to raise up to $2,294,174 via the issue up to 20,856,124 shares.

Eligible shareholders will be offered shares at an issue price of 11 cents each and on the basis of one new share for every three shares held at the record date on June 21, 2019.

In addition, a free attaching option, exercisable at 18 cents per share at any time until expiry on December 31, 2021 will be issued on the basis of one option for every two new shares issued.

Southern will use the funds raised from the new issue towards exploration in South Korea and to fund its joint venture contributions.

 

The company recently defined a substantial epithermal gold target over a 5.7 square kilometre area at the Beopseongpo Gold Project in South Korea.

READ: Southern Gold defines major epithermal gold target at South Korean project

Recent fieldwork has identified five major veined zones with width in excess of 20 metres and combined strike length in excess of 2,570 metres.

All five vein zones - Golden Palm, Lotus North and South, Hand of Faith, Phoenix and Enigma - returned weak to moderate anomalous gold and silver values with peaks of 31.9 g/t gold and 23.5 g/t silver.

READ: Southern Gold begins 2019 field work at South Korean gold projects

The company is also advancing several prospects within its wider Deokon Gold Project in South Korea.

Follow-up on a new mineralised area at Deokon has returned up to 78.6 g/t gold and 13,000 g/t silver in a float sample, extending the potential to the east.

Sample from the Deokon gold-silver project in South Korea

Southern will also drill at Weolyu, a historical small-scale silver-gold-germanium mine with very high grade silver which is indicative of a high-grade mineralised system.

Project pyramid

The company is also in a 50/50 joint venture with Bluebird Merchant Ventures Ltd (LON:BMV), aiming to reopen old high-grade gold mines in South Korea.

The companies are targeting first gold pour in 2020 with development costs backed by near term cash from the sale of Southern’s Australian assets.

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Southern Gold Ltd Timeline

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