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5th December 2007 5th December 2007
Drilling under way on W.A. nickel sulphide targets Drilling under way on W.A. nickel sulphide targets
Southern Gold is pleased to announce that RC drilling has started on its 100% owned Bulong South Nickel Sulphide project, 30km east of Kalgoorlie in W.A. Southern Gold is pleased to announce that RC drilling has started on its 100% owned Bulong South Nickel Sulphide project, 30km east of Kalgoorlie in W.A. First assay results from the RC drilling program are expected early in 2008. First assay results from the RC drilling program are expected early in 2008.
The drilling program follows the nickel sulphide discovery made by Southern Gold in early 2007 of pentlandite+/‐violarite grading 2.1% Ni over 2m from 52m depth (within 6m @ 1.4% Ni). Details of the nickel sulphide discovery drilling are in the March 2007 Quarterly Report.
The drilling program follows the nickel sulphide discovery made by Southern Gold in early 2007 of pentlandite+/‐violarite grading 2.1% Ni over 2m from 52m depth (within 6m @ 1.4% Ni). Details of the nickel sulphide discovery drilling are in the March 2007 Quarterly Report.
In addition, more nickel sulphide drill targets have been identified by modelling of detailed ground EM surveys and close spaced airborne magnetics during 2007. In addition, more nickel sulphide drill targets have been identified by modelling of detailed ground EM surveys and close spaced airborne magnetics during 2007.
The four main types of exploration targets for drilling at Bulong South (P25/1680 & P25/1681) are (refer Figure 1 below): The four main types of exploration targets for drilling at Bulong South (P25/1680 & P25/1681) are (refer Figure 1 below):
Target 1 Lateral and depth extensions to the nickel sulphide discovered in hole BSRC004 Target 1 Lateral and depth extensions to the nickel sulphide discovered in hole BSRC004 o 2.1% Ni over 2m from 52m depth (within 6m @ 1.4% Ni) o 2.1% Ni over 2m from 52m depth (within 6m @ 1.4% Ni)
Target 2 Lateral extensions to the nickel and gold discovered in hole BSRC02, 06 and 07 Target 2 Lateral extensions to the nickel and gold discovered in hole BSRC02, 06 and 07 o 1.2% nickel over 10m, gold of 14m at 2.41g/t –including 2m at 12.1g/t o 1.2% nickel over 10m, gold of 14m at 2.41g/t –including 2m at 12.1g/t
Target 3 EM targets delineated by the detailed EM survey (from June 2007) and magnetic features (SAU’s detailed heli‐mag survey) – “Eastern Komatiite”.
Target 3 EM targets delineated by the detailed EM survey (from June 2007) and magnetic features (SAU’s detailed heli‐mag survey) – “Eastern Komatiite”.
Target 4 Interpreted basal Ni‐zones of komatiites identified in January 2007 drilling. Target 4 Interpreted basal Ni‐zones of komatiites identified in January 2007 drilling.
250m Target type 4: basal zone of komaliite
Target type 3: Eastern Komatiite and EM conductors
Target type 1: Basal Komatiite zone – extensions to BSRC4 Nickel sulphide
Target type 1: Gold follow up BSRC02,06,07
Figure 1. Exploration targets for drilling on P25/1680 and P25/1681
Southern Gold Limited 58 North Terrace PO Box 750 email: [email protected] telephone 08 8132 0044 ABN 30 107 424 519 Kent Town Kent Town www:southerngold.com.au facsimilie 08 8132 0199 South Australia 5067 South Australia 5071
Southern Gold Limited 58 North Terrace PO Box 750 email: [email protected] telephone 08 8132 0044 ABN 30 107 424 519 Kent Town Kent Town www:southerngold.com.au facsimilie 08 8132 0199 South Australia 5067 South Australia 5071
Due to the difficulty in sourcing appropriate drilling services, the drilling programs at Bulong South are likely to be packaged into smaller programs that can be completed on an opportunistic basis. As such this first phase of drilling is focused on the Eastern Komatiite, a ‘type 3’ target (Figure 1 and 2). 12 RC drill holes for a total 1440 m are planned to test the “Eastern Komatiite” for nickel mineralisation along the eastern margin of the komatiite, which is interpreted to represent the nickel prospective base of flow. The Eastern Komatite target is delineated by (refer Figure 2 next page):
1. Historical auger geochemistry up to 3050 ppm Nickel. 2. SAU RAB holes which intersected nickel rich rocks. 3. SAU detailed magnetics survey 4. Two small EM targets near the interpreted base, detected by SAU’s detailed EM
survey in mid‐2007 5. Basal position of komatiite is also coincident with reported find of gold and
subsequent Low Impact Mining operations for gold. Drilling and subsequent down‐hole EM surveys on the Eastern Komatiite are to be completed in the next 2‐3 weeks. RC Drilling is then expected to re‐commence in January 2008 on the Bulong South Project. For further information please contact: Mr Stephen Biggins Managing Director Phone: +61 (0) 8 8132 0044 Fax: +61 (0) 8 8132 0199
Please visit our website at www.southerngold.com.au
The information in this report has been compiled by Stephen Biggins (BSc(Hons)Geol, MBA) as an employee of Southern Gold and who is a member of the Australasian Institute of Mining and Metallurgy and is bound by and follows the Institute’s codes and recommended practices. As a Competent Person, he has a minimum of 5 years relevant experience in the style of mineralisation and types of activities being reported and has given written consent to the above report in the form and context in which it appears.
Southern Gold Limited 58 North Terrace PO Box 750 email: [email protected]
Figure 2. Eastern Komatiite (Target 3) showing proposed RC drillhole locations, elevated nickel in auger, previous RAB drilling and EM Targets overlain on detailed magnetic image.
telephone 08 8132 0044 ABN 30 107 424 519 Kent Town Kent Town www:southerngold.com.au facsimilie 08 8132 0199 South Australia 5067 South Australia 5071
