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Southern Gold’s discovery could be just around the corner: RM Research

The company is acquiring a large position in one of the most prospective regions for epithermal gold mineralisation in South Korea.

Southern Gold Limited - Southern Gold’s discovery could be just around the corner: RM Research
Diamond drilling is underway at Beopseongpo and scheduled to commence at Deokon and Weolyu this month

Southern Gold Limited (ASX:SAU) is a pure South Korean gold play which is set to acquire a very large position in one of the most prospective regions in the country.

RM Research has maintained its speculative buy recommendation on SAU after a four-day site visit to the company’s key gold exploration projects in South Korea - Deokon, Weolyu and Beopseongpo.

Following is an extract from RM Research’s update on SAU:

Site visit highlights gold potential

  • A four day site (18-22/9/2019) visit to SAU’s South Korean key gold exploration projects (Deokon, Weolyu & Beopseongpo) confirmed the outstanding high-grade epithermal AuAg potential of the Ogcheon belt that is host to numerous operating and historic gold mines.
  • Infrastructure (grid power, sealed highways and proximity to major regional centres) is excellent and RMR anticipates developing in this mining friendly jurisdiction to face few unforeseen hurdles other than the usual technical issues.
  • There has been minimal modern exploration on most prospects and we anticipate a rapid rate of discovery. With only weeks of fieldwork at Deokon, for example, the SAU technical team has already discovered outcropping ore Au-Ag mineralisation associated with steeply dipping epithermal veins striking for over 500 metres.

South Korea...best mining jurisdiction in Asia?

  • Ranked 7th for economic freedom and 4th in the world for ease of doing business, South Korea is truly a first world jurisdiction.
  • While South Korea has transitioned to first world businesses (technology) and left mining behind to a large extent, RMR sees a significant opportunity for the deployment of state of the art exploration methods in this highly prospective belt.

First Mover Advantage

  • SAU is set to establish a large footprint in South Korea with few other explorers (including Peninsula Mines Ltd, ASX: PSM) active in country. RMR believes the next 12 months will see a significant increase in SAU’s ground position leaving the door open for multiple joint venture opportunities.

Near-Term Price Catalysts

  • Diamond drilling is underway at Beopseongpo and scheduled to commence at Deokon, Weolyu this month with approximately 3-4,000 metres spread across the projects. Given reconnaissance and drilling results to date, RMR anticipate a successful campaign.

Action and Recommendation

  • RMR is maintaining its speculative buy on this highly leveraged explorer that is in the process of picking the eyes out of the most prospective South Korean exploration terrane. Backed by a highly capable exploration team RMR considers a Company making discovery could be just around the corner. ACCUMULATE below 25 cents.

Quick facts: Southern Gold Limited

Price: 0.115 AUD

Market: ASX
Market Cap: $18.4 m

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