Southern Gold Limited (ASX:SAU) is 18 per cent higher after confirming two new South Korean gold discovery areas, Geum-Mar and Daeam Valley, in outcrop and float sample assays from recent reconnaissance field programs.
A peak of 3.05 g/t gold from a group of nine highly anomalous samples from the Jinan Basin confirmed the Geum-Mar discovery area and a peak of 3.49 g/t gold from a group of 20 samples in the Neungju Basin confirmed the Daeam Valley discovery area.
Investors have responded positively with shares more than 18% higher at 13 cents.
Increasing drill target pipeline[hhmc]
Managing director Simon Mitchell said: “These latest gold results continue to validate our project generation methodology in South Korea and highlight the incredible situation where we are finding new areas of gold mineralisation approximately every 4-6 weeks of fieldwork.
“The first pass reconnaissance sampling is fundamentally increasing our drill target pipeline by organically converting technical concepts to project status and typically in areas that have never been drilled before.
“With our drill operations continuing in South Korea, notwithstanding the COVID19 disruption, we expect a solid stream of news flow during the next few months and indeed for the balance of 2020, a unique position for a gold junior to be in.”
Anomalous grade gold[hhmc]
The intensive reconnaissance sampling program involved 238 new samples being taken and submitted for analysis.
Several rock chip and float samples returned anomalous grade gold results.
This process has succeeded in finding multiple untested vein systems in addition to very small-scale historical mine workings
Highlights from the reconnaissance sampling
The two regions investigated were the Neungju Basin surrounding Southern Gold's Neungju project, which included follow-up sampling at Daeam Valley, as well as the Jinan Basin surrounding the company's Deokon project.
Consistent mineralisation[hhmc]
Consistent mineralisation has been identified at Daeam Valley with 13 samples returning values of more than 1 g/t gold over a strike length of 1-kilometre, which highlights the consistency of this new target.
A total of 119 new samples were taken here and a further 14 reconnaissance samples in the Neungju Basin and sent for geochemical analysis.
There were peak results of 3.49 g/t gold in float and 1.76 g/t gold in outcrop.
Eleven applications have been lodged over this area and follow-up sampling is required.
Locations of 2020 reconnaissance sampling in relation to Southern Gold 100%-owned projects and 50%-owned JV projects
Jinan Basin sampling[hhmc]
In Jinan Basin, a total of 105 samples were taken and sent for geochemical analysis.
Peak results of 3.05 g/t and 1.93 g/t were returned with several very high-grade lead and zinc values also received, including 5.2% lead and 2.8% zinc.
The company's fieldwork waRead More – Source
[contf]
[contfnew]
Proactiveinvestors
[contfnewc]
[contfnewc]
The post Southern Gold confirms two new South Korean gold areas, shares rise appeared first on News Wire Now.
