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ASX Release 6 June 2016
RC Drilling Intersects Mineralised Alteration Zones at Tooting Bec
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Assay results received from recent RC drilling at Tooting Bec Prospect.
ASX Code: SAU
Issued Shares: 36.53M
Directors
Greg Boulton AM (Chairman) Simon Mitchell (MD) Michael Billing
David Turvey
Head Office Southern Gold Ltd Level 1, 8 Beulah Rd
Norwood SA 5067
Telephone: (08) 8368 8888
Facsimile: (08) 8363 0697 [email protected]com.au www.southerngold.com.au
Postal Address
PO box 255
Kent Town SA 5071 ABN: 30 107 424 519
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Margin of magnetite alteration zone around felsic intrusive intersected with strongly anomalous gold grades.
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Best intercept: 20m @ 0.35g/t Au from 63m, including 3m @ 1.08g/t Au from 77m in hole BSRCD259.
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Mineralisation is open down dip and along strike at depth.
Introduction
Southern Gold Limited ("Southern Gold", ASX: SAU) has completed a program of 7 Reverse Circulation (RC) drill holes to evaluate anomalous gold grades within several historical RAB drill holes at the Tooting Bec Prospect, 2km southwest of the Cannon Gold Mine (Figure 1) on 100% owned mining lease E25/349. The Cannon Mine operations are approximately 30km to the East of Kalgoorlie in Western Australia. A total of 882m were drilled during the program.
In the late 1990's, previous workers drilled six lines of RAB holes across a gold anomalous soil target with values up to 81 ppb Au. This drilling intersected two separate zones of greater than 1.0 g/t Au (BPR007 - 1m@ 1.26 g/t Au from 17m and BPR033 - 4m @1.25 g/t Au from 20m). Southern Gold auger soil sampling in the area confirmed a 150m to 400m wide Au anomaly extending from the boundary of the tenement, for at least 250m to the south.
The gold anomalism at the Tooting Bec Prospect is adjacent to the Cannon-Jubilee haul road which makes it an attractive target in light of the access to infrastructure.
Results
Seven RC holes were drilled on two sections for a total of 882m intersecting a 200m wide sequence of basalts intercalated with narrow intervals of variably silicified, graphitic sediments. To the east and west, this sequence is bounded by komatiitic ultramafic lithologies (Figure 4).
Southern Gold Managing Director, Mr Simon Mitchell, commented: "The RC drill results from Tooting Bec are very encouraging and hint at a much larger mineralised system than previously thought. The identification of a relationship between magnetite alteration and elevated gold grades provides Southern Gold with a new style of target in the Cannon area and while these first pass RC drill results are sub-economic, the width and consistent elevated tenor of the gold grades point to the possibility of us finding something of larger scale. As always, it comes down to more drilling!"
Figure 1: Tooting Bec Prospect Location
At the eastern end of the northern section, BSRC258 and BSRC259 terminated in intersections of mixed granodiorite and diorite (Figure 5), visually very similar to the mineralised hosts in the Monument area. These are interpreted to be part of a southwest trending series of felsic dykes extending from the large granodiorite body to the east (Figure 2). Trace amounts of felsic intrusive were seen in the southern line of holes, indicating that the intrusions do not extend this far to the southwest.
Previous interpretation of the magnetic data in the area identified a zone of potential magnetite alteration around the margins of the granodiorite intrusion (Figure 2). Magnetic susceptibility data and visual logging of the RC chips has confirmed this interpretation with the alteration extending into the Tooting Bec area, presumable as a halo about the felsic intrusive dyke (Figure 5). In addition, the strongest gold grades intersected were all found within zones of high magnetic susceptibility around the margins of the felsic intrusives (Figure 3).
The gold grades intersected in the Tooting Bec drilling (Figures 5 and 6) indicate that this drilling program has intersected the margin of a significant mineralised system associated with the granodiorite intrusion to the east.
Two intervals of anomalous composite samples (>0.1g/t) were returned in the assays (Table 1) with a best intercept of 20m @ 0.35g/t Au from 63m in BSRCD259. The individual samples from these intervals are in the process of being submitted for analysis and the results will be reported as soon as they are available.
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Figure 2: Tooting Bec Prospect Geology
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Figure 3: TMI image showing magnetite alteration zones around granodiorite intrusion.
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