Southern Gold Limited ('Southern Gold' or the 'Company'; ASX: SAU) is pleased to provide an update on its exploration activities in South Korea, including its licence applications over five areas prospective for Li mineralisation.
Background
In 2022, Southern Gold commissioned RSC to undertake a desktop prospectivity study for REE and Li deposits in South Korea to complement its precious metals exploration portfolio. From this study, SAU lodged exploration applications over two REE projects last month. 1 Several regional Li targets were also identified by RSC from anomalies defined in an historical country-wide stream-sediment sample survey conducted by the KIGAM. After further targeting work of high-priority Li areas, together with preliminary reconnaissance fieldwork conducted by SAU and RSC during Q2-Q3 FY22, SAU has submitted new exploration licence applications over five prospective project areas
Samguen Li Project
The Samguen Li Project includes five exploration licence applications covering 13.7 km2 , in the northern region of Gyeongsangbuk-do. Geology comprises Precambrian metasediment and gneiss intruded by pegmatites, aplites and felsic dykes. This project area contains anomalous Li from the KIGAM streamsediment sampling survey2 with the highest value between 121 and 361 ppm
he project lies 2 km northwest of the historical Boam mine, where Li was mined from 1945-1963. The Uljin pegmatites consists of breccia-type and vein-type Li and tin (Sn) mineralisation, hosted within the Yulri Formation and Janggun Limestone. The Uljin pegmatites contain spodumene and lepidolite as the major Li minerals and cassiterite as the primary Sn mineral. Ridge-and-spur soil sampling was conducted by Peninsula Mines Limited6 in 2017 over ground that now includes the southern part of the Samguen project application area. This soil program was conducted following the return of anomalous stream-sediment sampling in the area by Peninsula7 . Values in soilsamples up to 410 ppm Li were returned within the SAU application licence area (
Increasing Li Demand in South Korea
In February this year, the Ministry of Trade, Industry and Energy released a new strategy to secure a stable supply of critical minerals, listing Li among the top 10 given that South Korea is heavily reliant on mineral imports to support its battery, electric vehicle and clean technology sectors. The strategy outlines new incentives to encourage participation by private companies in exploration and mining, including in research and development projects8 . The South Korean government and its top battery companies plan to jointly invest USD15.1 billion through 2023 to develop advanced battery technologies, including solid state batteries9 , including Posco Holdings who are investing USD353 million in a new Li-hydroxide plant in the southern industrial city of Gwangyang. 10 Accordingly, any Li discovery made by SAU could have the positive benefit of close proximity to Li processing and battery manufacturing plants and highly developed national transport infrastructure
Next Steps
Fieldwork is now underway and will comprise regional stream-sediment sampling, rock-chip sampling, and geological mapping to focus for subsequent detailed exploration and target development. First geochemical results from this regional exploration program are planned to be returned in Q4 FY23 - Q1 FY24, depending on progress and lab turn-around times. Further review and translation of key KIGAM and KETEP reports on the Boam Li deposit will also continue to assist to guide the wider exploration program. The team are in the field this week with a third party who is assessing their interest in the lithium potential of Southern Gold's applications. Management is greatly encouraged by the interest of this third party in the Lithium potential of South Korea and believes it provides early validation of the Board's decision to expand its scope beyond primarily looking for potential gold deposits. SAU will also continue to investigate the potential for other styles of Li deposits in South Korea as part of wider on-going generative studies, including HARSH (hydrothermally altered rhyolitic sediment-hosted) Li deposits.
Contact:
Tel: 08 8368 8888
Email: maude@nwrcommunications.com.au
Southern Gold Limited: Company Profile
Southern Gold Ltd is a successful gold explorer listed on the Australian Securities Exchange (under ASX ticker 'SAU'). Southern Gold owns 100% of a substantial portfolio of high-grade gold-silver projects in South Korea that are largely greenfield epithermal gold-silver targets in the south of the country. Backed by a first-class technical team, Southern Gold's aim is to find world-class precious metals deposits in a jurisdiction that has seen very little modern exploration
Competent Person's Statements
The information in this report that relates to Exploration Results is based on information compiled under the supervision of Dr Michael Gazley, a Competent Person who is a Member of The AusIMM and a Member of the AIG. Dr Gazley is employed by RSC as General Manager Geoscience. Dr Gazley discloses that his employer, RSC, is currently engaged to provide exploration services to Southern Gold across multiple projects. Dr Gazley confirms that the pre-existing relationship between RSC and Southern Gold has not biased the results of the work presented in this Report. The full nature of the relationship between Dr Gazley and Southern Gold has been declared, including any issue that could be perceived by investors as a conflict of interest. Dr Gazley has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. Dr Gazley consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
Forward-looking statements
Some statements in this release regarding estimates or future events are forward looking statements. These mayinclude, without limitation: Estimates of future cash flows, the sensitivity of cash flows to metal prices and foreign exchange rate movements. Estimates of future metal production and Estimates of the resource base and statementsregarding future exploration results. Such forward looking statements are based on a number of estimates and assumptions made by the Company and its consultants in light of experience, current conditions and expectations of future developments which the Company believes are appropriate in the current circumstances. Such statements are expressed in good faith and believed tohave a reasonable basis. However, the estimates are subject to known and unknown risks and uncertaintiesthatcould cause actualresultsto differ materially from estimated results. All reasonable efforts have been made to provide accurate information, but the Company does not undertake any obligation to release publicly any revisions to any 'forward-looking statement' to reflect events or circumstancesafterthe date ofthis presentation or ASX release, except asmaybe required under applicable laws. Recipientsshould make their own enquiries in relation to any investment decisions from a licensed investment advisor
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