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IONDRIVE LIMITED Capital/Financing Update 2007
65132_rns_2007-05-09_bf407fce-2fc0-4aed-91dc-c7924e879d5a.pdf
Capital/Financing Update
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10th May 2007
Southern Gold expands footprint in nickel sulphide terrain between Blair and Bulong, WA
Southern Gold has increased its footprint at the Bulong nickel sulphide discovery 25 kms NE of Kambalda. The wholly owned holding in the area has been increased by over 400% through the acquisition of rights of two tenements and a third by the replacement of an exploration licence recently held by Mincor.
The expanded Bulong South project comprises 6 titles covering a highly prospective package of ultramafics proven to host nickel sulphides. The project tenements trend northeasterly between the Blair nickel sulphide mine and the nickel rich laterite resources at Bulong (Figure 1).
Southern Gold is building its interest in the area as a result of its new nickel sulphide (pentlandite+/-violarite) grading 2.1% Ni over 2m from 52m depth (within 6m @ 1.4% Ni). Details of the nickel sulphide discovery drilling are in the March 2007 Quarterly Report.
The Directors of Southern Gold believe this shallow nickel sulphide discovery provides a highly profitable scenario for possible development given its proximity to nearby Kambalda nickel smelter. Southern Gold is therefore committed to fast tracking advanced exploration and expanding potential development of the Bulong South project to increase exposure to the strong nickel price.
For Further information please contact:
Mr Stephen Biggins Managing Director Phone: +61 (0) 8 8132 0044 Fax: +61 (0) 8 8132 0199
Please visit our website at www.southerngold.com.au
The information in this report has been compiled by Stephen Biggins (BSc(Hons)Geol, MBA) as a full-time employee of Southern Gold and 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. As a Competent Person, he has a minimum of 5 years relevant experience in the style of mineralisation and types of activities being reported and has given written consent to the above report in the form and context in which it appears.
Southern Gold Limited ABN 30 107 424 519
58 North Terrace Kent Town South Australia 5067
PO Box 750 Kent Town South Australia 5071 email: [email protected] telephone 08 8132 0044 www:southerngold.com.au
facsimilie 08 8132 0199
ż. źk ß. SOUTHERNGOLD Southern Gold Bulong South :595000.n1 s. (h) Ö 0 B 6590000 mN SAU RC Drilling é2 6585000 mN Kambalda Smelter 15km Blair Mine + _
6580000 mN (nickel sulphide)
Figure 1. New and existing tenure, Bulong South Project, W.A.
Southern Gold Limited ABN 30 107 424 519
58 North Terrace Kent Town South Australia $5067\,$
PO Box 750 Kent Town South Australia $5071\,$ email: [email protected] telephone 08 8132 0044 www:southerngold.com.au
facsimilie 08 8132 0199
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