Southern Gold likes Cambodia

Adelaide-based Southern Gold has not ruled out further exploration project acquisitions in Cambodia. Addressing the first day in Perth today of the 2007 Paydirt Asia Pacific DownUnder Conference, Southern Gold’s Managing Director, Stephen Biggins, said the Company had no intention of “sitting still” on its initial foray into Cambodia’s gold and base metals prospects. “We believe there will be a flood of new minerals investment into this region as Cambodia has a very welcoming government, the small local mining sector has had no previous exploration, it is politically stable and is showing all the signs of becoming a successful emerging South East Asian economy,” Biggins said.

“We have built up a solid first mover tenement portfolio in Cambodia’s northeast over the past 18 months but the country hosts a large number of undrilled ore bodies that are literally ‘sticking out of the ground’. These prospects are in a region of virgin geology – rare globally – with no exploration other than small-scale artisinal workings. Southern Gold has used its early mover advantage to establish contacts and build networks in Cambodia.”

“However, our sampling work to date shows that all of our eight tenements totalling 1,842 km2 of prospective terrain, exhibit high grade gold and base metals potential. Within this environment, we are keen to add to our assets whilst moving next quarter into our first drilling programs in Cambodia, on partially oxidised massive sulphide veins within the Snoul prospect.”

Southern Gold recently increased its security of tenure to explore for gold in Cambodia after converting three of its 100%-owned Memorandum of Understanding (MOU) tenements, to granted Exploration and Exploitation Licences (EEL). EELs are valid for six years but must be renewed every two years during the term of the EEL.