Southern Gold reducing Cambodian presence under deal with Mekong Minerals

Thursday, February 09, 2012
By Bevis Yeo
ProactiveInvestors.com.au (Australia)

Southern Gold will enjoy a free carry through three years of exploration expenditure up to US$5.7 million (A$5.3 million) at its Cambodian assets under a farm-in deal with Mekong Minerals, allowing it to focus on its Bulong Gold project in Western Australia.

Under the non-binding term sheet, Brisbane-based Mekong has the exclusive right earn up to 70% stake in Southern’s wholly-owned subsidiary Southern Gold Asia (SG Asia) by spending the funds.

This includes a minimum commitment of US$1 million to be spent within the first 12 months, the interests earned in SG Asia will be earned on a pro-rata basis for each US$1 million expended.

Should Mekong earn a 70% interest in SG Asia, it will have an exclusive 6 month option to acquire the remaining 30% for US$4.5 in cash or share equivalent upon its listing on the ASX.

Southern will retain a 1.5% net smelter royalty interest.

Southern Gold discovers new high grade gold at Kratie South Project

Wednesday, August 18, 2010
ProactiveInvestors.com.au

Southern Gold has identified new high grade gold at the Gossan prosect within the Preak Khlong tenement at the Kratie South Project in Cambodia and has now completed exploration activities for the 2009‐2010 field season.

The best results from diamond core drilling on the Gossan prospect include; 3m @ 14.60 g/t Au, 0.4% Pb, 0.5% Zn and 0.1% Cu from 38m (including 1m @ 34.57 g/t Au) (DD10GSN003) and 2m @ 1.44 g/t Au from 88m (DD10GSN002).

Best rock chip results include; 35.55 g/t Au, 2.8% Zn, 2.9% Pb and 119.5 g/t Ag and 26.16 g/t Au, 23.6% Pb and 974.7 g/t Ag.

In addition, two high grade gold quartz vein‐sets (massive sulphides) have been detected to date at the Gossan prospect, which are hosted within metasedimentary rocks adjacent to diorite intrusive rocks.

A total of 2,178m of diamond core drilling, 767m of reverse circulation drilling and 2000m of trenching has been completed over the Preak Khlong and O’Khtung tenements within the Kratie South Project during the season and all assay results are now to hand.

Exploration on three of Southern Gold’s seven tenements in Cambodia (Preak Khlong & O’Khtung, Kratie South Project and Phnum Khtong, Kratie North Project) is being fully funded by the Japanese Government‐backed JOGMEC, pursuant to a Joint Venture agreement whereby JOGMEC can fully fund exploration activity to a total of US$4.5 million over 3 years to earn a 51% interest in these tenements.

Mick Billing, executive director, said the discoveries at Gossan and Preak Khlong will be the focus of systematic rock chip sampling, trenching and infill drilling programmes planned to start in October‐November 2010, when the next dry season commences in Cambodia.

Southern Gold commences drilling program for 2009-2010 field season in Cambodia

Wednesday, December 02, 2009
Proactive Investors (Australia)

Diversified resources company Southern Gold has announced the commencement of drilling operations for the 2009‐2010 Field Season on the Snuol gold and base metals tenements in Cambodia.

The 2,500m program is testing the continuity of gold mineralisation intersected at the Anchor Prospect including 8m @ 5.9g/t gold (SNRC09) and at the nearby Oh Pok prospect and will also test several other prospects identified from soil and/or trenching results.

Managing director Stephen Biggins said the drilling operations were the first of an extensive program of diamond core and Reverse Circulation drilling that would be completed by Southern Gold on its Cambodian Projects over the next few months.

It is planned that drilling operations will be carried out utilising 2‐3 man portable diamond core drill rigs and 2 RC (multi‐purpose) drill rigs.

A soil sampling program completed last week on the Snoul tenement collected 895 samples to identify new gold and base metal anomalies which can be prioritised for trenching and/or drill testing.

This program will also include infill sampling of previously identified targets within the tenement.

A soil sampling program has also commenced on the Kratie South JV (JOGMEC) tenements, Preak Khlong and O’Kthung, with the aim of identifying new gold and base metal anomalies for trench and/or drill testing.

Drilling operations will commence shortly on the Kratie North and South JV tenements, which are located in the same intrusive related gold district as Oz Minerals Ltd’s Cambodian gold exploration projects.

Southern Gold 'strikes gold' in Cambodia

July 14, 2009
AAP (Australia)

Southern Gold Ltd says it has found significant gold mineralisation at one of its projects in Cambodia.

The gold junior found "a number of prominent gold intersections" during its first reverse circulation drilling program, the company said.

Shares in the company leapt on news of the discovery, which identified gold intersections as rich as 8.8 grams per tonne.

Other metals including silver, copper and zinc also were located at the site.

Southern Gold managing director Stephen Biggins said the maiden drilling program validated the company's confidence in the area.

"I am delighted with the results of this first-pass drill program and look forward to aggressively following-up these results," Mr Biggins said in a statement.

At 1107 AEST, shares in Southern Gold were up 1.5 cents, 15 per cent, to 11.5 cents.

Cambodia Exploration Update : Trenching and Drilling by JOGMEC JV Projects

Monday 27th April 2009
Announced by: SAU
The Age (Australia)

Current Exploration Highlights

• Multiple veins sets up to +900m long in trenching over gold soil anomaly,
• Big Toe Prospect (Kratie South JV)
• Gold mineralisation is consistent over 1.3km of trenching and open at both ends, Preak Khlong Prospect (Kratie South JV) ·Trenching and RC drilling completed over 3km x 1km gold/silver/lead soil anomaly, Oh Tron Prospect (Kratie North JV)

Currently awaiting results from:

• 660 metre Phase 1 RC drilling on Kratie North JV with JOGMEC
• 15 trenches on Kratie North for 2,600m
• 28 trenched in Kratie South for 4,700m

Click here to download the original PDF announcement including maps

Southern Gold Limited (ASX code "SAU") has completed its first exploration programme of the 2009 field season in Cambodia. A substantial program of drilling and trenching exploration work has been completed with a large number of assay results expected to be received in respect of this work during May.

Exploration on three of Southern Gold's seven tenements in Cambodia, is being fully funded by the Japanese Government-backed JOGMEC pursuant to a Joint Venture agreement whereby JOGMEC can fully fund exploration activity to a total of US$4.5 (~A$7) million over 3 years to earn a 51% interest in these tenements ­ Phnum Khtong (Kratie North Project), and two adjoining blocks, Preak Khlong and O'Kthung (Kratie South Project), all to the northeast of Phnom Penh.

All three tenements are to the northeast of Phnom Penh (Figure 4).

Southern Gold commences drilling for gold, base metals in Cambodia

Monday, March 02, 2009
ProactiveInvestors (Australia)

Southern Gold (ASX:SAU) has advised that the Company’s maiden reverse circulation (RC) drilling campaign has commenced on its Cambodian gold and base metals tenements.

The objective of Southern Gold’s first RC drilling program in Cambodia is to confirm the scale and grade of gold and base metal mineralisation identified at surface through work undertaken over the last few field seasons by Southern Gold. Additional drill targets are expected to be prioritised as results are received from current trenching exploration programs.

The RC drilling campaign on the joint venture tenements is fully funded by the Japanese Government‐backed JOGMEC pursuant to a Joint Venture agreement whereby JOGMEC can fully fund exploration activity to a total of US$4.5 (~A$7) million over 3 years to earn a 51% interest in three tenements – Phnum Khtong (Kratie North Project), and two adjoining blocks, Preak Khlong and O’Kthung (Kratie South Project), all to the northeast of Phnom Penh. Southern Gold will fund a small drill programme on its 100% owned Anchor Prospect.

Key targets of the current programme are summarised as follows:

Oh Tron Prospect – Kratie North JV

Six RC drillholes totalling 400m are following up trench gold intersections including 32m @ 2.7g/t gold, and also targeting multiple gold, arsenic and copper anomalies over a 1,000m x 3,000m area defined by detailed soil sampling. Additional trenching activity is currently underway on this prospect area which will further define drill targets.

Central Prospect ‐ Kratie North JV

Three RC drillholes totalling 320m are targeting zinc, nickel & copper soil anomalies over an area of 2,000m x 3,000m associated with a layered mafic intrusive identified by Southern Gold’s detailed airborne magnetic surveys in 2008.

Anchor Prospect – Snoul EL (SAU 100%)

A total of 400m of RC drilling is targeting the source of significant gold trench intersections, including 32m @ 0.22 g/t gold, 8m @ 2.8g/t and 16m @ 0.8g/t.

Southern Gold make first substantial Cambodia gold intersections

28 Jul 2008
Source: News Bites

Southern Gold Ltd announced the first substantial gold intersections in Cambodia, including 4m at 15.7 gpt Au and 32m at 2.74gpt Au in a gold trench intersection at Kratie North.

The company has acquired 100% of four Cambodian exploration licences covering 1,000 sq km prospective for gold and base metals and now holds 100% each of 7 granted ELs covering over 1,500 sq km.

Japanese company finalizes Cambodian deal with Australian miner

Mon, 19 May 2008
DPA

Phnom Penh - State-owned Japan Oil, Gas and Metals National Corp has formally committed to invest 4.5 million dollars in a joint venture in Cambodia with the Australian gold-exploration company Southern Gold Ltd, the company said Monday. Adelaide-based Southern Gold said in a statement to the Australian Securities Exchange that the deal would accelerate exploration on three Cambodian gold and base-metal projects in the north-east of Cambodia.

The announcement confirmed a March letter of intent.

Under the now formal terms, the Japanese firm must spend a minimum of 1 million dollars on the projects over the next 12 months and would make a total investment of 4.5 million dollars over three years to earn a 51-per-cent interest in the three tenements, it said.

Southern Gold has previously posted promising gold and base-metal predictions on the three projects from early exploratory research.

The Japanese firm said its objectives in the deal were securing a stable supply of oil, natural gas, nonferrous metals and minerals for Japan and, if exploratory results were positive, the equity interest would be transferred to a private-sector Japanese company.

Southern Gold's other investors in the project include Chinese resource investor CITIC as well as Australia's Macquarie Bank Ltd.

Southern Gold predicts major discovery in Cambodia

Southern Gold operations

14 Apr 2008
MineBox (Australia)

Asian equity market and resources investors have been told Adelaide-based explorer Southern Gold Ltd is on the verge of making a “major” gold discovery in Cambodia.

Addressing the peak Asia Mining Congress in Singapore, Southern Gold’s Managing Director, Mr Stephen Biggins, said recent investments in the Company’s Cambodian campaigns had enabled it to “significantly” step up exploration activities at three of its eight gold projects in the country’s northeast.

“We have now cemented our early mover advantage in Cambodia, and are on the verge of making a major gold discovery,” Mr Biggins told the mining and investment Congress.

Southern Gold is the sole or majority owner of eight Cambodian tenements, covering a total of 1,800 km2 in the highly prospective northeast region, where artisanal mining has long pointed to extensive high-grade gold and base metals mineralisation.

Exploration licences have been granted for three of Southern Gold’s wholly-owned tenements, with applications pending on a further four.

The Company’s first drilling at its Snoul concession, completed in December last year, intersected gold in three holes. Detailed geochemistry and geological programs are currently being undertaken.

“All eight tenements suggest the potential for high-grade gold finds, with widespread mineralised intrusive bodies and highly anomalous regional soils,” Mr Biggins said in Singapore.

“In some places, there is undrilled gold mineralisation literally protruding out of the ground and this continues to add to our confidence of an imminent large discovery.”

Last month, the Company’s exploration program received a fillip when the Japanese Government-owned Japan Oil, Gas and Metals National Corporation (JOGMEC) agreed to invest US$4.5 million over three years in exploration at the Australian explorer’s Phnum Khtong, Preak Khlong and O’Kthung tenements.

Through the agreement, JOGMEC joined a list of major Southern Gold shareholders that includes Chinese resource investor, CITIC and Australia’s Macquarie Bank.

“The Joint Venture with JOGMEC has enabled us to significantly bring forward our exploration schedules – and potential discoveries – in Cambodia, which we regard as one of the world’s great mining frontiers,” said Mr Biggins.

“As well as enabling us to commit to much larger surveying and drilling budgets, these investments also provide substantial potential for us to acquire additional projects."

Japanese Joint Venture plan with Southern Gold in Cambodia

Sydney, Mar 26, 2008 (RWE Aust Business News) The Japanese government organisation, JOGMEC, plans to fund accelerated exploration on three Cambodian gold and base metal projects under a Letter of Intent with Southern Gold.

JOGMEC (Japan Oil, Gas and Metals National Corp) and Southern Gold will JV over three of Southern Gold's Cambodian tenements.

JOGMEC will invest $US4.5 million ($4.94m) within three years to earn a 51 per cent interest in Phnum Khtong (Kratie North project) and two adjoining blocks, Preak Khlong and O'Kthung (Kratie South project).

The agreement includes an up-front payment to Southern Gold of approximately $US400,000 on signing of the LOI for current exploration costs, followed by a decision to proceed with a full joint venture on the Kratie North and/or the Kratie South Projects by June 2008.

The three tenements are among eight gold projects, wholly or majority owned, by Southern Gold under its strategy to establish a cornerstone gold business in Cambodia to compliment the Australian gold projects.

Southern Gold Intersects Gold Grades at First Cambodian Drill Holes

Friday March 14, 2008
Southern Gold Announcement

Southern Gold announced that gold grades have been intersected in the first batch of holes drilled into gold‐in‐soil anomalies by Southern Gold under its maiden exploration foray into Cambodia. The highest grade intersection was 3.45 grams per tonne gold over one metre at just 74 metres below surface.

Macquarie increases mining shares on back of Cambodian visit

Tue, 18 Dec 2007
DPA

Phnom Penh - A positive site visit to Cambodia to view exploration operations and the investment climate has prompted Australia's Macquarie Bank Ltd to up its shareholding in Southern Gold Ltd, the mining company said in a statement Tuesday. "This investment follows Macquarie Bank recently completing a positive site visit to Cambodia to review Southern Gold's projects, exploration operations and the investment environment in Cambodia," Southern Gold Ltd said in a statement to the ASX.

The Adelaide-based gold and base metals mining company said Macquarie Bank Ltd had raised its shareholding to 4.7 per cent though a new placement which raised 3.6 million Australian dollars (3.1 million US dollars) in cash.

Southern Gold Ltd allocated approximately 9.3 million ordinary shares at a price of 39 cents (34 US cents) per share to raise the proceeds and will have approximately 94 million shares on issue on completion of the placement, it said.

It said a number of European investors participated in the placement, including Gold 2000, a Zurich-based investment fund.

Southern Gold Ltd announced it had commenced first drilling on its eight tenements in Cambodia for high grade gold and base metals on November 28.

Maquarie Bank's parent, The Macquarie group, describes itself on its website as "a diversified international provider of banking, financial, advisory and investment services, headquartered in Sydney, Australia," employing 11,000 people in 25 countries.

Another Australian mining giant, Oxiana, has tenements adjacent to Southern Gold's in north-eastern Kratie province but is yet to announce first drilling.

Australian mining firm begins drilling in Cambodia

Nov 28, 2007
DPA

Phnom Penh - Australia's Southern Gold Ltd has commenced mining for gold in north-eastern Cambodia, the company said Wednesday.

In a statement also released to the Australian Stock Exchange, Southern Gold said it had started 'its first drilling campaign in Cambodia' at its 80-per-cent-owned Snoul Prospect in the south-eastern province of Kratie.

Southern Gold and another Australian mining giant, Oxiana Ltd, have taken out adjoining lots in the remote area with both reporting promising pre-drilling exploration findings on gold and base metals. Oxiana already operates the massive Sepon gold mine in neighbouring Laos.

Southern Gold - which like Oxiana also mines for base metals, including lead and zinc - said it expected first assay results in early 2008.

Environmentalists have expressed concern as mining companies flock to newly opened Cambodia, concerns the Cambodian government has said are unfounded.

Chinese mining companies are exploring for iron ore in the country's north, and Australia's BHP Billiton, the world's largest mining company, has reported promising finds in initial explorations for bauxite in the eastern province of Mondulkiri and also has interests in as yet untapped anticipated off-shore oil reserves.

Southern Gold Commences First Drilling Program in Cambodia

Diamond core drilling at Snoul Gold Prospect, Snoul MOU, north-eastern Cambodia (Photo: Southern Gold)

Southern Gold’s 100% and 80% owned tenements covering 1800km2 of prospective gold and base metal tenure in Kratie, Mondul Kiri and Ratana Kiri provinces, north eastern Cambodia. (Map by Southern Gold)

Wednesday November 28, 2007
Yahoo! Finance

Original Announcement: First Drilling program commences in Cambodia

Southern Gold announced that it has commenced its first drilling campaign on its 80% owned Snoul Prospect, in the Kratie Province, South Eastern Cambodia. The diamond drilling program at Snoul Prospect is focused on a series of artisanal gold workings and new significant gold-in-soil anomalies. Drilling will continue over the next few weeks with first assay results expected in early 2008.

[Australian] Southern Gold Secures Gold Tenure in Cambodia

Monday September 3, 2007
Southern Gold

Southern Gold has increased its security of tenure to explore for gold in Cambodia after converting two of its 100%-owned Memorandum Of Understanding (MOU) tenements to granted Exploration and Exploitation Licences (EEL). EELs are valid for six years but must be renewed every two years during the term of the EEL. The two EELs are O'Khtung and Preak Khlong, and are located within Southern Gold's total of 1,842 sqkm of tenure in Cambodia’s eastern provinces and held as granted EELs, MOUs or MOU applications.

Aussie's Southern Gold expands its operation in Cambodia

February 20, 2007
Southern Gold steps up role

CAMERON ENGLAND
The Advertiser (Adelaide, Australia)

SOUTHERN Gold has expanded its footprint in Cambodia via a joint venture with local company Greystoke.

The Adelaide gold and base metals explorer said yesterday it had signed a letter of agreement to form a joint venture over two of Greystoke's exploration areas.

This brings to five the number of tenements Southern Gold is exploring across Cambodia, with a total area of 1155 sq km.

"Exceptionally encouraging exploration results are being recorded from all these tenements as a better understanding of the mineralisation models are achieved," the company said in a statement yesterday.

"Southern Gold also notes Oxiana's reporting of several high-grade gold drilling results from Oxiana's Shin-Ha joint-venture project, which is adjacent to Southern Gold's O'Kthong project in eastern Cambodia."

Oxiana's results included 33m of 9.9 grams per tonne of gold and 4m of 10.4g/t

Southern Gold's new tenements cover 375 sq km and the company will earn an 80 per cent interest in each by funding exploration up to the bankable feasibility stage, managing director Stephen Biggins said.

The company said geochemical sampling and geological mapping would occur across the tenements during the first quarter of 2007, with drilling scheduled for several targets mid-year.

It has told the Cambodian Ministry of Industry Mining and Energy that it intends to apply for exploration licences for all of its tenements in Cambodia. Southern Gold shares added 1.5c to 54.5c yesterday.