Adelaide-based Southern Gold (ASX: SAU) spent the northern autumn in South Korea with a strong focus on future drill targets, particularly for action in the second half of 2021.
Southern Gold has eight 100%-owned projects in South Korea and is aiming to revive gold production in the country.
The company’s strategy is to become an “internationally recognised” high-grade gold and silver project generator in South Korea.
In its December 2020 quarterly report, Southern Gold outlines the breadth of work undertaken in the three months to 31 December.
Other highlights from the period included the sale of its 50% interest in two projects in South Korea to Singapore’s Bluebird Merchant Ventures for US$9.945 million (A$12.85 million) and a $10.2 million placement with Denver-based Crescat Capital.
The company ended the December quarter with $10.16 million in cash with the payment from Bluebird yet to be received.
Extensive field work completed
Field work included a drone magnetic survey at the Aphae project, the results from which identified a magnetic trend which has been interpreted to be a continuation of the known mineralised structure there.
At Deokon, Southern Gold reported two new prospects — Nettle and Thistle. At Nettle, a peak outcrop sample returned 8.56 grams per tonne gold and 9,260g/t silver.
A new vein outcrop was discovered at the Geum Mar project and revealed 3.88g/t gold.
Targeted scout diamond drilling, along with fieldwork, at Weolyu and Dokcheon took place, with diamond drilling returning low tenor gold results.
Underground rock sampling in a recently discovered mine adit at Janghwal produced a peak assay of 8.04g/t gold.
Orientation sampling was completed across several projects with methodology for planned future larger surveys being determined.
Korea has long history of gold production
The Korean peninsula has a long history of gold production although very little activity for the past 50 years.
Gold production grew after the peninsula was annexed by Japan in 1910, with the Japanese operating mines until the 1945 surrender.
There was also mining in the 1960s.
Southern Gold considers South Korea as highly prospective for new metalliferous deposit discoveries and has stated that limited systematic modern exploration has been done in the Korean Peninsula in comparison to similar belts of rocks to the northeast in parts of Japan and Russia as well as to the southwest in China that both host numerous significant gold deposits.
Southern Gold’s portfolio of tenements in South Korea includes a significant number of historical gold mines. Brownfields exploration is done in and around these areas to test for further mineralisation.