Southern Gold Ltd (ASX:SAU) continues to uncover rare earth elements (REEs) during exploration at the Jangnam REE Project in South Korea.
The finds include “significant rock-chip REE results” from carbonatite outcrop discovered last month over a 700-metre-long zone at the project, an extension of the Hongcheon REE carbonatite deposit that outcrops 800 metres to the northeast, outside of SAU’s holding.
Samples came back from the lab containing up to 2.7% total rare earth oxide (TREO), with seven samples above 1% TREO and up to 22% magnet rare earth oxide (MREO).
Significant anomalies
There were also significant anomalies featuring base and precious metals with up to 74 parts per million (ppm) silver and 2.45% zinc associated with the mineralised system.
The company has lodged 11 additional exploration licence applications for the prospective tenements bordering the Hongcheon carbonatite deposit as well as along strike of the Hongcheon Fault, a potential controlling structure for the deposit.
The total licence area at Jangnam now covers 174 square kilometres.
At present, SAU geologists are in the field to further define the extent of the discovery and to work up targets for drill testing. The company also awaits assay results from additional rock-chip samples and stream sediment sampling.
Managing director Robert Smillie said: “This is an outstanding early result from the team at our Jangnam Project after only recently commencing fieldwork, and it is a significant discovery for the company.
Larger than thought
“To have found a previously undiscovered 700-metre long extension of the Hongcheon carbonatite deposit in SAU ground, and some 800 metres southwest of the deposit itself, clearly indicates the deposit is larger than previously thought.
“Furthermore, the low thorium and uranium concentrations from the samples are highly favourable for the outlook of the project. We will focus our efforts in the coming weeks in gaining a better understanding of the discovery through mapping and additional sampling to define targets for drill testing as soon as practicable.
“Given our additional licence applications and large land holding over 170 square kilometres, the potential for further carbonatite extensions and discoveries with the Jangnam project area is excellent.”
Investors have responded positively to the results with shares as much as 9.1% higher this morning to $0.024.