Southern Gold Limited provided an update on its exploration activities in South Korea, including its licence application over two areas prospective for rare earth element (REE) mineralisation. In 2022, Southern Gold commissioned consultancy RSC to complete a prospectivity study on critical elements in South Korea. The RSC study identified several REE targets using a mineral system approach.

After further targeting work of higher-priority targets over winter and preliminary reconnaissance fieldwork, Southern Gold has submitted exploration licence applications over areas surrounding the two well-known and unmined REE deposits in South Korea, Eorae San (i.e. SAU Chungju REE Project) and Hongcheon (i.e. SAU Jangnam REE Project). The Chungju REE Project includes 25 exploration licence applications covering an area of 68.7 km2, in the northern region of Chungcheongbuk-do. The application area comprises metasedimentary (metapelites, quartzites and phyllites) and metavolcanic rocks of the Kyemyungsan Formation of the Okcheon Group.

This project area was identified by RSC to be prospective for REE mineralisation due to anomalous thorium (up to 122 counts per second) from the Korea Institute of Energy and Resources ("KIER") 1986 survey. In addition, the Chungju REE Project is adjacent to the well-documented Eorae San REE deposit, a NE-SW striking, ~2 km long, faulted REE mineralised body held by a third party, which formed from an alkaline intrusion. The REE mineralisation is hosted in a magnetite-bearing, metamorphic and metavolcanic layer of the Kyemyungsan Formation.

Geological maps, produced by Korea Institute of Geoscience and Mineral Resources ("KIGAM") and georeferenced by SAU geologists, indicate the western extent of the Eorae San REE mineralisation extending into one of SAU's licence applications. SAU has applied for prospective licence areas in all directions around the REE mineralisation at Eorae San. SAU geologists and RSC are currently interpreting extensive reports by KIGAM detailing historical drilling at Eorae San.

Mineralised pegmatites and volcanic rocks at Eorae San have up to 11.9% total rare earth oxide (TREO) in drillhole DH93-1, at 148.3-148.5 m depth. More recently, Korea Institute of Energy, Technology, Evaluation and Planning (KETEP) undertook drilling during 2013 and 2015 at Eorae San deposit and as well as 7 km northeast and 4 km southeast from the Eorae San deposit. Two drill holes (Ch 2013-11 and Ch 2013-12) are located in SAU's application area.

Significantly, an average value of 0.81% TREO has been reported from drill hole Ch 2013-11 over an aggregate depth interval with a total width of 34.9 m between 0-92.7 m. The Jangnam REE Project includes 53 exploration licence applications covering an area of 143.8 km2, adjacent to the unmined Hongcheon REE carbonatite deposit held by a third party. The application area is situated within the Gyeonggi Gneiss Complex, which includes Precambrian biotite and biotite-hornblende gneisses. The Hongcheon REE carbonatite dykes are up to 50 m wide and ~2,500 m long and intrude the Precambrian basement gneisses along the deep-seated Hongcheon Fault.

The Jangnam REE Project application areas are just ~1 km north and ~1.7 km west of the Hongcheon REE carbonatite and cover the crustal-scale Hongcheon Fault, and accordingly are highly prospective for further REE discoveries along strike. Anomalous thorium (up to 160 counts per second) were returned in the project area from KIER's 1986 geophysical survey. The Hongcheon REE mineralised carbonatite dykes have up to 19.75% TREO in a rock sample (010726-S5) collected by KIGAM at the southern outcrop.

Detailed historical KIGAM reports obtained by SAU are currently being interpreted to assist in exploration planning. Fieldwork over the REE project areas will commence in early March and will comprise regional stream sediment sampling, rock chip sampling, and reconnaissance geological mapping to focus towards areas for subsequent detailed exploration and target development. Particular attention will be directed around the area with elevated TREO from historical drilling at Chungmu.

Further review and translation of key KIGAM and KETEP reports on Eoare San and Hongcheon deposits will also continue by RSC staff and SAU geologists to assist in guiding the wider SAU REE exploration program. SAU has the intention to define and drill targets before the end of 2023.