Bluebird RNS: Ongoing Progress at Gubong and Kochang Gold Projects
ASX Announcement 17 April 2018
Bluebird Merchant Ventures release to London Stock Exchange;
Kochang Gold Project
- Underground mapping and sampling completed
- 400 samples sent to SGS for analysis with results in 3 weeks
Gubong Gold Project
- Water treatment plant commissioned
- Metallurgy work at Gubong being progressed
Bluebird Merchant Ventures Ltd Public Release
Southern Gold Ltd (“Southern Gold”) advises that its development partner, London Stock Exchange (LSE) listed Bluebird Merchant Ventures Ltd (“Bluebird”), has released some information through the LSE information distribution platform, RNS. The information in this latest RNS is regarding Southern Gold’s Gubong and Kochang Gold Projects in South Korea where Bluebird is currently earning a 50% equity interest. The RNS can be seen on their website at:
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BMV/13604840.html
The results or statements in this RNS have not been verified by the Southern Gold board as at the time of writing.
Bluebird is currently investing a total of US$1 million in the advancement of the historic Gubong and Kochang Gold Mines principally by defining a development framework to advance the projects on a capital cost of less than US$10 million. The report and development framework are due to be submitted to Southern Gold in mid-2018. See Southern Gold ASX release dated 27 March 2017 for further details.
WA gold operations and exploration update
ASX Announcement 10 April 2018
Gold miner, Southern Gold, provides the following update on its WA gold mining, development and exploration projects located east and southeast of Kalgoorlie.
Cannon Gold Mine
- Initial mining and payment schedules to Southern Gold for new Cannon underground gold mine not impacted by change in ownership of HBJ Resources’ Cannon Right-to-Mine agreement
- In March, Westgold Resources sold its wholly-owned HBJ subsidiary to Northern Star, with the Cannon Right-to-Mine obligations remaining in place with the transfer of ownership
- An updated Cannon development schedule is expected from Northern Star post completion of its HBJ acquisition. Southern Gold remains on track for maiden underground mine production payments from Cannon in the new financial year.
Drilling Activity
- RC Drilling has concluded at the Cowarna project’s Pryde and Logan prospects (1,600m) with results expected late in April.
- A second drill program of 1,000m has commenced to test a new target at Monument South, 1.5km south of Cannon.
- A first pass RC programme (1,000m) will commence shortly at the Transfind Extended Project.
Glandore Gold Project
- Internal resource review of Glandore’s Doughnut Jimmy prospect, based on drilling to date, has indicated that it is currently not economically feasible to proceed as a standalone gold deposit project.
- Additional resources to be defined at nearby Lavaeolus and Lankin prospects, and a depth extension to Doughnut Jimmy, with the aim to establish a larger economic project.
Southern Gold Managing Director, Mr Simon Mitchell: “There is considerable project exploration and development scheduling underway at present on our Australian and international gold assets. Over the next few months, 3 projects are being drilled in Western Australia and at least 2 gold projects to be drilled in South Korea. We are particularly pleased to be drilling at WA’s Cowarna project after receiving all regulatory approvals – a process which has occupied the team for the past 6 months or so. “
On-site activity at the emerging Cannon underground gold mine project will ramp up once Northern Star, the new owners of HBJ Resources (with which SAU negotiated a right-to-mine agreement), complete work on their acquisition. Southern Gold expects to remain on track for maiden underground mine production payments from Cannon to be receipted during the new financial year.
“The recent results at Doughnut Jimmy have not hit the mark as hoped but the broader Glandore gold project hosting Doughnut Jimmy will remain the focus of continued exploration drilling.”
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Definitive Farm In and Joint Venture Agreement over Gubong
executed with Bluebird Merchant Ventures
- Agreement includes framework for management of the incorporated Joint Venture
- Bluebird Merchant Ventures has completed the US$500,000 initial farm in expenditure requirement
- The Joint Venture is formed after submission of a report on feasibility to Southern Gold, expected in July 2018
Gubong Farm In and Joint Venture Agreement Executed
Southern Gold Ltd (“Southern Gold”) is very pleased to advise that it has executed the definitive Farm In and Joint Venture Agreement for the Gubong Gold Project with its development partner, London Stock Exchange (LSE) listed Bluebird Merchant Ventures Ltd (“Bluebird”). The document provides the final framework for the management of the 50/50 Gubong Project Joint Venture through an incorporated structure with Bluebird as operators.
The 50/50 Joint Venture commences after submission of a report on feasibility for the Gubong Gold Project expected in July 2018.The report is to define a development framework to advance the project with capital costs of less than US$10 million that is satisfactory to Southern Gold Ltd.
Bluebird has completed its investment commitment by spending a total of US$0.5 million in the advancement of the Gubong Gold Mine.Until the Joint Venture is formed Bluebird is responsible for all costs at Gubong, after which costs are shared 50/50.
Southern Gold Managing Director, Simon Mitchell: “This is an important milestone for the advancement of the Gubong Project and speaks to the quality of the relationship between Southern Gold and Bluebird. Both companies are very excited by what we are seeing at Gubong and the scale of the opportunity suggests the potential for the project to be a true “company maker”.
South Korean Portfolio Continues to Build
with Addition of Historic Aphae Gold Mine
ASX Announcement 27 March 2018
- New tenure granted 100% to Southern Gold at the historic Aphae Gold Mine, south western South Korea
- Mullock samples up to 6.8g/t Au returned from Southern Gold sampling adjacent to historical open cut gold-silver mine
- Geologically mapped hydrothermally altered quartz veining and brecciation within a 100m wide mineralised corridor, open along strike and at depth
- Historic mine production of 115kg gold with alluvial field adjacent to the open cut and historic KORES diamond drill hole confirming mineralisation continues at significant depth
- “Walk-up” drill target to be tested in the next few months
Tenure granted over historic Aphae Gold Mine
Australian gold producer, Southern Gold Limited (ASX: SAU) is pleased to announce the Company has been granted formal tenure over a small gold-silver mine called Aphae in the southwest of South Korea (Figure 1). Detailed ground assessment work in 2017 identified Aphae as one of several very prospective epithermal gold-silver targets where there was the potential for a mineralised system much greater in size than what was historically recognized.
Sampling by Southern Gold of mullock adjacent to the historic mine at Aphae returned several samples over 1g/t Au and up to 6.08g/t gold and 93g/t silver (Table 1 and Photos 1 and 2). A mineralised corridor has been defined and constitutes an early drill target.
The Project Generation exercise, mentioned in previous ASX releases and in which this Aphae project is one example, is ongoing with several other high-quality targets under application. The Southern Gold technical team is confident of identifying several highly prospective, easy to advance, drill-ready projects throughout a district of known gold-silver production, that collectively constitute a significant epithermal gold-silver exploration play with the potential for economic discovery.
Southern Gold Managing Director, Mr Simon Mitchell: “Like our Hampyeong ASX release last month, the grant of the Aphae project outlined in this release continues to demonstrate our capability of securing tenure in South Korea and reinforces the message that we are progressively building an exciting epithermal gold play. Also, like Hampyeong, this is another “walk up” drill target, however the difference here is some historic drilling that confirms mineralisation at depth.
As I have stated before, Hampyeong and now Aphae are just the beginning of a major exploration effort in a uniquely prospective geological terrane with drilling to commence at Hampyeong in the next few weeks.”
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