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IONDRIVE LIMITED Capital/Financing Update 2006
65132_rns_2006-02-05_6af5a667-0278-48fc-b4c3-0457ada3a7be.pdf
Capital/Financing Update
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06 February 2005
GOLD RESOURCE AND GOLD SATELLITE EXPLORATION AGREEMENT WITH DOMINION MINING, CHALLENGER MINE REGION, S.A.
Southern Gold Limited (ASX Code: SAU) has entered in to an exclusive option agreement with Dominion Mining Limited (ASX Code: DOM) to develop a gold only Joint Venture on DOM's Exploration Licences around the Challenger Gold Mine in South Australia. The JV includes the Golf Bore 54,000oz gold Resource (Indicated plus Inferred).
Southern Gold will issue Dominion with 250,000 fully paid SAU shares to earn the exclusive right, for a three month period, to conduct due diligence on the advanced exploration gold prospects and gold Resources and formalise exploration and development agreements.
The package of tenements includes eight Exploration Licences (EL) in the Challenger region covering 3000km2 on the Gawler Craton (refer table and map on following page).
Southern Gold is attracted to the advanced gold exploration ground and will assess opportunities to build on intercepts of 14m @ 4.2 g/t at Campfire Bore and 6m @ 9.2 g/t at Typhoon. Southern Gold is also assessing the potential to develop the Golf Bore gold Resource as a satellite mining operation to Challenger. The Golf Bore Resource comprises a shallow Indicated Resource of 117,000 tonnes at 2.7g/t for 10,000oz, within a total Resource (Indicated plus Inferred) of 800,000 tonnes at 2.1g/t for 54,000oz.
Dominion's Challenger gold mine produced 29,280 oz at A\$258oz during the December 2005 quarter and had reserves of 292,00oz as of 31st December 2005. The agreement excludes the area immediately surrounding the Challenger mine on EL 3270 which is subject to Dominion's own near-mine exploration activities.
Yours faithfully
S BIGGINS Managing Director
Contact:
Mr Stephen Biggins Managing Director Phone: +61 (0) 8 8132 0044 +61 (0) 8 8132 0199 Fax:
The information in this report has been compiled by Stephen Biggins 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. He has a minimum of 5 years experience in the types of activities being reported.
Please visit our website at www.southerngold.com.au
Southern Gold Limited ABN 30 107 424 519
58 North Terrace Kent Town South Australia 5067
PO Box 750 Kent Townweb South Australia 5071 email: [email protected] telephone 08 8132 0044 web:southerngold.com.au
facsimilie 08 8132 0199
| . | |
|---|---|
| Exploration Licence Number | Holder(s) |
| 2778 | DOM |
| 2808 | DOM |
| 3044 | DOM |
| 3270 (excluding Challenger Mine. See map) | DOM |
| 3300 | DOM |
| 3435 | DOM |
| 2884 | DOM and Coombedown Resources Pty Ltd |
| 3262 | DOM and Coombedown Resources Pty Ltd |
Exploration Licences subject to the agreement
Satellite gold targets surrounding Challenger Gold Mine, Gawler Craton, S. Australia.
Southern Gold Limited ABN 30 107 424 519
58 North Terrace Kent Town South Australia 5067
PO Box 750 Kent Townweb South Australia 5071 email: [email protected] web:southerngold.com.au
telephone 08 8132 0044 facsimilie 08 8132 0199