Southern Gold Ltd (ASX:SAU) has received compelling preliminary results from lithium and rare earth elements (REE) exploration efforts in South Korea, where it holds several lithium projects and the Chungju REE Project.
The company, which has recently expanded its lithium project portfolio, said there were favourable geological indicators for lithium and that it had defined a significant extension of the Eorae San REE deposit.
Exploration efforts have been supported by sophisticated geochemical analysis tools to identify fertile parent granites and highly fractionated systems for elements like lithium, caesium and tantalum (LCT).
Highly favourable geochemistry
The latest results will serve as a basis for further fieldwork to confirm the presence of LCT pegmatite bodies.
Managing director Robert Smillie said: "Our initial lithium exploration program is off to an excellent start, showing highly favourable geochemical indicators for the formation of lithium-caesium-tantalum (LCT) pegmatites.
“Furthermore, the inclusion of new projects in our lithium exploration portfolio, identified through extensive targeting efforts by our team, underscores the tremendous lithium potential in South Korea.
“Exploration at our Chungju REE Project has returned significant TREO results, confirmed extension of the Eoare San deposit into Southern Gold’s ground, and highlighted the potential scale of the mineralised system.
“In the coming weeks, our team will be diligently following up on these exciting findings with focused mapping and sampling programs, while also maintaining our commitment to uncovering new target opportunities through regional fieldwork.”
Southern Gold announced exploration licence applications for lithium in key South Korean projects in April 2023. Targets were selected based on consultancy reports by RSC and the Korea Institute of Geoscience and Mineral Resources and feature prospective geology, including granites and pegmatites.
Since then, the company has undertaken a comprehensive data review that led to the inclusion of the Dangyang, Seosan and Cheongpyeong projects, increasing the total coverage area to 383.8 square kilometres.
Lithium fertility
Rock-chip samples from the company's Seobyeok Lithium Project returned more than 1% lithium oxide (Li2O), while new Danyang Project samples showed 0.3% Li2O. What’s more, geochemical analysis across multiple projects suggests favourable lithium fertility and fractionation indicators for the formation of LCT pegmatites.
In the REE domain, rock-chip samples from the Chungju project yielded up to 1.4% total rare earth oxide (TREO). This finding confirms the western extension of the existing Eorae San REE deposit over an 8-kilometre-plus mineralised trend. Regional stream sediment samples showed up to 0.16% TREO, outlining new exploration targets.
Southern Gold's focus in the coming weeks will include follow-up sampling and mapping based on these initial results.
"We will be diligently following up on these exciting findings while also maintaining our commitment to uncovering new target opportunities," Smillie added.