Southern Gold Ltd (ASX: SAU) has announced new bonanza grade outcrop and float assays from the April-June 2019 field program at its 100%-owned Deokon Project in South Korea.
The company reported that new assays from the field program returned a peak of 32.4g/t gold and 1,095g/t silver in outcrop and 53.9g/t gold and 6,240g/t silver in float.
The company announced that two veined zones, Bonanza and Thorn have been identified, 4m-20m wide 500m apart with interpreted continuity and open along strike. SAU noted that visible native silver and electrum were evident in hand specimens.
Southern Gold said that maiden diamond drilling will commence as soon as possible.
The Deokon project is located 200km south of Seoul in the Yeongdong Province and approximately 100km SSW of the major city of Daejeon, central-southwest of South Korea.
Golden Surprise trend unveiled after April-June fieldwork
The company reported that the field work completed in April to June at Deokon project has located the outcrop representing the source of the bonanza grade gold-silver float sample that was reported earlier.
This newly identified outcrop has now been named the ‘Bonanza Zone’. The company said that it has identical vein textures, alteration, and abundant visible silver sulfosalts, native silver and what is likely silver rich electrum.
SAU said that another new area of extensive outcrop, the ‘Thorn Zone’, has been located 500m to the north of the Bonanza Zone.
Combined, the two zones represent a mineralised vein corridor of more than 500m that remains open in both directions, and now collectively named the ‘Golden Surprise Trend’.
Golden Surprise trend is a mineralised vein corridor with an approximate width of 60m and a strike extent of at least 500m based upon geological mapping and is not closed off in either direction.
Sampling program completed
The company reported that an intensive sampling program was completed at Deokon. Work to date included systematic field traversing, extensive rock sampling and 1:5000 geological mapping.
SAU said that over 112 new samples were taken and submitted for analysis. The company reported that the process succeeded in highlighting multiple untested vein systems in addition to historical mine workings.
The company concluded that the Deokon project represents a high-quality Au-Ag fertile epithermal mineralisation system with multiple vein zone targets identified across several square kilometres of project area.
Southern Gold reported that 11 outcrop rock chip and five float samples returned high grade gold-silver results.
The company announced that the peak outcrop rock chip sample at ‘Bonanza Vein Zone’ was 32.4g/t Au and 1,095g/t Ag, while the peak outcrop sample at ‘Thorn Vein Zone’ returned 34.3g/t Au and 69.2g/t Ag.
Peak results of 53.9g/t gold and 6,240g/t silver and 35.1g/t gold and 3,270g/t silver were returned from the ‘Bonanza Zone’ within the Golden Surprise trend.
The company said that follow-up mapping and sampling work on the Golden Surprise trend, and Shin Hill North, was undertaken in June to continue building the understanding of the Deokon mineralised systems.
The company reported that the Southern Gold Korean team is currently in discussions with local landowners to enable drilling to commence as soon as practicable.
The company said that is anticipating to commence drilling at Beopseongpo very shortly, but will look to drill at the Deokon Golden Surprise Trend once local landowners and other stakeholders have been fully informed of developments.
Southern Gold expressed hope to commence drilling at the target at some stage over the coming months.
Southern Gold Managing Director, Mr. Simon Mitchell said: “These very high-grade results vindicate the project generation work that has been undertaken to date in South Korea.
Our 100% owned Deokon Project is shaping up incredibly well with bonanza grade gold and silver on surface in an area which, to our knowledge, has never been previously drilled.
It’s not often you can walk up to outcrop and identify visible native silver in hand specimen! This adds a whole new meaning to the often-used term ‘walk-up drill target’.
Deokon, as a high-quality project opportunity, underscores the enormous exploration potential of South Korea.”