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IONDRIVE LIMITED — Capital/Financing Update 2011
Apr 27, 2011
65132_rns_2011-04-27_f9f5ad27-d678-4acd-9d38-93220eb3a1ab.pdf
Capital/Financing Update
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28 April 2011
Preliminary Results Show Positive Gold and Base Metal Hits from 2011 Cambodian Drill Campaign
Southern Gold is pleased to advise that preliminary results received from its 2011 Cambodian drill campaign show positive gold and base metal hits. Initial assay results of up to 5m @ 5.42g/t (from 73m) and 3m @ 8.51g/t plus visual logging identifying economic minerals within drill core (ie chalcopyrite) show that Southern Gold has successfully hit the targeted mineralisation zones.
35 drill holes were drilled during the 2010/2011 drill campaign at two of Southern Gold’s five project areas, Kratie South and Memot.
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Memot Project
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Figure 1 : Southern Gold’s 2011 drill campaign tested prospects at the Kratie South and Memot project areas. All five of SAU’s project areas are located in the eastern provinces of Cambodia.
Southern Gold Limited 47 Tynte Street PO Box 1016 email: [email protected] telephone 08 8368 8888 ABN 30 107 424 519 North Adelaide North Adelaide www:southerngold.com.au facsimilie 08 8368 8899 South Australia 5006 South Australia 5006
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Southern Gold considers that the ground held in Cambodia is prospective for intrusive related shear and vein hosted gold (and base metal) mineralisation similar to that of the 600,000oz gold Okvau resource defined by Oz Minerals in March 2010[1] . The Okvau deposit is located 10km north of Southern Gold’s Kratie South project area.
KRATIE SOUTH PROJECT
The majority of work in this campaign has been completed at the JOGMEC[2] funded Kratie South project. 23 diamond holes have been drilled at 3 prospects for a total of 3,888m of core. The aim of the drill programme was to test geochemical targets generated in 2010. These include gold and base metal soil anomalies, rock chip samples with values up to 35g/t gold and drill results of 3m @ 14.6g/t Au (from 38m) with minor zinc/lead and copper mineralisation.
Three prospects were tested, Gossan, Preak Khlong NW and O’Khtung SE. Initial assay results from Gossan and Preak Khlong NE indicate that 5 holes have intersected mineralisation with significant intercepts of 3m @ 8.51g/t (from 58m) and 5m @ 5.42g/t gold (from 73m). Initial results from O’Khtung SE show copper and zinc anomalism reaching 1,126ppm and 8,130ppm respectively.
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Figure 2 : 23 diamond drill holes were drilled at Kratie South Project, located approximately 10km south of Oz Minerals Ltd’s Okvau Resource.
1 [2010 March, Oz Minerals Limited, Okvau Resource Statement, available @ www.ozminerals.com/Operations/Resources--Reserves.html]
2 (JOGMEC: Japan Oil, Gas and Metals National Corporation - the Japanese Government-backed company, is currently earning 51% equity in the Kratie South project by funding exploration activity to a total of US$3.029M over 3 years)
Cambodia: Preliminary Results April 2011
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Table 1: Gold intersections with base metals (1 gpt Au cut-off) from the Gossan Prospect
| Hole No. | From | To | Copper (%) |
Lead (%) |
zinc (%) |
Gold g/t |
Gold average |
Silver g/t |
Silver average |
|---|---|---|---|---|---|---|---|---|---|
| DD10GSN004 | 73 74 75 |
74 | 0.00 | 0.01 | 0.01 | 0.1 | 3m @ 1.92 g/t | 1.1 | 3m @ 61.4 g/t |
| 75 | 0.11 | 0.74 | 0.14 | 4.38 | 127.4 | ||||
| 76 | 0.02 | 0.45 | 0.30 | 1.27 | 55.8 | ||||
| DD11GSN006 | 130 131 |
131 | 0.03 | 0.41 | 1.18 | 3.43 | 2m @ 2.82 g/t | 22.9 | 2 m @ 18.5 g/t |
| 132 | 0.03 | 0.49 | 0.34 | 2.2 | 14 | ||||
| DD11GSN009 | 58 59 60 |
59 | 0.003 | 0.04 | 0.06 | 0.4 | 3m @ 8.51 g/t | 2.8 | 3m @ 33.7 g/t |
| 60 | 0.06 | 0.97 | 0.88 | 14.23 | 49 | ||||
| 61 | 0.06 | 1.73 | 1.48 | 10.91 | 49.4 |
Table 2: Gold Intersections (1g/t Au cut-off) from the Preak Khlong NW Prospect
| Hole No. | From | To | Copper (ppm) |
Lead (ppm) |
zinc (ppm) |
Gold g/t |
Gold average |
Silver g/t |
Silver average |
|---|---|---|---|---|---|---|---|---|---|
| DD10PKL002 | 73 | 74 | 13 | 204 | 423 | 3.57 | 5m @ 5.42 g/t | 1.2 | 5m @2.22 g/t |
| 74 | 75 | 27 | 292 | 539 | 1.53 | 2.1 | |||
| 75 | 76 | 7 | 778 | 773 | 21.66 | 7.2 | |||
| 76 | 77 | 50 | 49 | 129 | 0.15 | 0.6 | |||
| 77 | 78 | 40 | 14 | 47 | 0.19 | <0.5 | |||
| including (73-76m) | 3 m@ 8.92g/t | ||||||||
| DD10PKL004 | 130 | 131 | 106 | 46 | 309 | 1.29 | 1 [email protected] | 22.9 | 1 [email protected] |
These preliminary results (Table 1 and 2) provide a positive indicator for first pass testing of mineralisation for the respective areas, with the bulk of results from the programme expected in coming weeks. Results from trenching activities will be received during the June quarter.
MEMOT PROJECT
After positive results from work programmes completed at the Memot Project in 2010, Southern Gold has conducted a follow up programme drilling 12 diamond holes and excavating 8 trenches at the Anchor and O Cham Ven prospects.
Seven holes were drilled (total 1,461m) at the Anchor prospect with visual logging identifying gold-bearing veins with associated silver and massive sulphide, predominantly pyrite, galena, sphalerite and trace aresenopyrite.
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Figure 3: Memot – Anchor Prospect: visual logging identifies sulphide mineralisation and associated alteration.
Cambodia: Preliminary Results April 2011
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Results from three of the seven holes have been returned with the best intercept to date 1m @ 4.15g/t Au, 1.27% zinc and 0.3% lead (from 101m). All results from this programme will be received in May/June 2011. Trench samples await approval from the Cambodian Mines Department (“MIME”) to be sent to McPhar Geoservices for assaying.
Five holes completed at O Cham Ven prospect (total 722m) were drilled to test gold/copper soil geochemical anomalies identified in 2010. This first past drill programme has intersected the target lithologies and alteration minerals. Visual chalcopyrite was noted in core. However samples await MIME approval to send to McPhar Geoservice to be assay tested.
While these preliminary results from the Cambodian work programmes are positive, in that they confirm gold and base metal mineralisation at each prospect, the bulk of drill and trench assay results will not be received until May/June 2011. This will provide the relevant information to delineate the continuity and morphology of the mineralised structures, and which areas will require further testing in upcoming programmes.
The work conducted and results received over the past few years by Southern Gold and other “pioneer” Australian explorers in Cambodia has started to show the prospectivity of a country that has had limited “modern-day” exploration or market attention. Southern Gold is developing its relationship with the Cambodian mines department by demonstrating that it is an active explorer and through its progressive development of its project portfolio. Southern Gold is keen to build on its exploration success to date through the growth and project development of its recent gold and base metal discoveries.
For further information contact:
Nanette Anderson Managing Director PO Box 1016 North Adelaide, SA, 5006 T: +61 (0) 8 8368 8888 F: +61 (0) 8 8368 8899
W: www.southerngold.com.au
The information in this report concerning Cambodian exploration has been compiled by Grant Thomas BSc as an 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.
Cambodia: Preliminary Results April 2011
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