SOUTHERN GOLD LIMITED - ASX: SAU

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Description

South Australian-based Southern Gold is a gold focused mineral exploration business with the objective to increase shareholder value by company growth through the discovery, acquisition and development of substantial economic mineral resources within Australia and selected overseas provinces.

The growth strategies are supported by a strong, like-minded shareholder base which includes experienced cornerstone supporters, Talbot Group Holdings [8%], CITIC Limited [7%], and Macquarie Bank Limited [5%].

The share register in turn is backed by a Board and Management team with substantial experience in the development of mining projects, with specific expertise in project generation and delivering exploration success through the application of conceptual, empirical and technological driven strategies.

Southern Gold controls an established portfolio of prospective projects focusing on gold resources in the world-class mining provinces of South Australia (Gawler Craton), the Eastern Goldfields of Western Australia (Yilgarn Craton), in New South Wales (the Lachlan Fold Belt) and is leading the mining industry into Cambodia through exploration of eight projects in eastern Cambodia.

Gawler Craton - South Australia

The Southern Gold Ltd (SAU) group has interest in a number of exploration licences and exploration licence applications in one of the world's leading mineral provinces, the Gawler Craton in South Australia. Southern Gold has increased its control of tenure on the Gawler Craton based on key geological models for mineralisation. Southern Gold’s strategy is to use the new concepts and modern technology to drive the portfolio towards success by creating a pipeline of continually improving exploration targets. Sediments form extensive cover over the craton, leaving large ore bodies hidden and posing great challenges for the application of standard exploration techniques. The directorship and exploration team at Southern Gold have a great collective experience in the exploration of South Australia, giving us that necessary edge to find these ore bodies.

Bulong Project - Western Australia

Outstanding gold intersections including of 66 metres at 2.9 grams per tonne gold (g/t Au) have been intersected amid a range of multiple large gold intersections on the boundary of the Bulong South Project, 30 kilometres southeast of Kalgoorlie, in Western Australia. Recent drill results include 66m@ 2.9g/t gold from 36m, and including shallow, high grade intervals of 21m @ 4.5g/t from 36m in hole BNRC057. Hole BNRC058 intersected gold near surface with an interval of 45m@ 0.9g/t gold from 13m. Additional new mineralisation was also identified in an extension to hole BNRC047. The new results extended the mineralised intersection to 43m @ 3.4g/t gold from 99 to 142m.

Lachlan Fold Belt - New South Wales

Exploration of historic workings in the Lachlan Fold Belt, New South Wales, led to the discoveries and current mining of the large low grade porphyry-style copper gold deposits over the last 25 years. However modern exploration for Intrusive (or Granite) - related deposits in younger geological terrains has been limited and offers new opportunities for the discovery of large resources or smaller or underground deposits amenable to increased commodity prices and better mining technologies under the current mining upturn. Southern Gold is establishing two key projects in the overlooked Grenfell and Eurow-Vychan areas along the prospective Coolac Narromine Fault Zone.

Cambodia

Southern Gold has a large, prospective land position in the eastern provinces of the Kingdom of Cambodia. During 2007/2008 Southern Gold increased its security of tenure with four Memorandum of Understanding (MOU) tenements being converted to Exploration Licenses (EL's), bringing the total of granted licenses to seven, covering over 1600 km². Southern Gold has continued to explore across its tenements, identifying multiple attractive gold and base metal targets on all the tenements where exploration work has been conducted, providing encouragement for further work and highlighting the potential of this under explored region. In a country with no history of large scale commercial gold and base metal mining, Southern Gold are in a strong position holding both tenements and having expertise to further explore the region. Other Australian miners exploring in this area of Cambodia include BHP Billiton and Oz Minerals. Of the seven tenements, the company holds three in Joint Venture with the Japanese Government Organisation, 'JOGMEC' and the remaining four are held 100% by Southern Gold. The 2008/2009 field season will involve substantial trenching and drilling programs on further identified anomalies as well as expanding exploration into prospective, previously unexplored areas.

Mine For

gold, copper, uranium, nickel, lead, silver, zinc

Location of operation(s)

Cambodia, Western Australia, New South Wales, South Australia

Address

47 Tynte St
NORTH ADELAIDE, SA, AUSTRALIA

Phone

(61 8) 8368 8888

Email

Website

http://www.southerngold.com.au

Last Updated

01/03/2010