Southern Gold steps up role

SOUTHERN Gold has expanded its footprint in Cambodia via a joint venture with local company Greystoke. The Adelaide gold and base metals explorer said yesterday it had signed a letter of agreement to form a joint venture over two of Greystoke's exploration areas.

This brings to five the number of tenements Southern Gold is exploring across Cambodia, with a total area of 1155sq km.

"Exceptionally encouraging exploration results are being recorded from all these tenements as a better understanding of the mineralisation models are achieved," the company said in a statement yesterday.

"Southern Gold also notes Oxiana's reporting of several high-grade gold drilling results from Oxiana's Shin-Ha joint-venture project, which is adjacent to Southern Gold's O'Kthong project in eastern Cambodia."

Oxiana's results included 33m of 9.9 grams per tonne of gold and 4m of 10.4g/t.

Southern Gold's new tenements cover 375sq km and the company will earn an 80 per cent interest in each by funding exploration up to the bankable feasibility stage, managing director Stephen Biggins said.

The company said geochemical sampling and geological mapping would occur across the tenements during the first quarter of 2007, with drilling scheduled for several targets mid-year.
It has told the Cambodian Ministry of Industry Mining and Energy that it intends to apply for exploration licences for all of its tenements in Cambodia. Southern Gold shares added 1.5c to 54.5c yesterday.