Ann: Second KORES Drill Grant Secured-SAU.AX, page-28

Why is everyone so edgy on 1st of many south Korean drill results. It is unlikely that they will come back with amazing over the top results, but will confirm an opportunity for an amazing play that will be developed early in the next 18 months by going straight into the underground. I know that is not what you may want to hear and i hope i am wrong and we get some new amazing high grade intercepts of 2000 gram, but in any case i for one am very comfortable knowing that this will turn into a game changer for SAU within the next 24 months.

What are you looking for ?
Southern Gold is poised for in excess of 100% growth over the next 9 months.
1. conclusion of mining cannon open pit in Dec
2. processing of ore to be completed by Feb
3. Full payment in Significant excess of base case scenario to be fully paid by Feb, $16 mil +
4. Nill debt
5. Fully funded
6. Cannon underground drill holes to commence in Feb
7. Shareholder cash return, i.e. Dividends in July less than 9 months away.
8. Significant exploration in Korea - 2nd drilling campaign underway
9. Tight small registry meaning that when POG increase this will go for a higher run then others.
10. Further timely M&A activity.


Bottom line we all know that there is historic gold in Korea and that with some much needed funds and time this will prove a spectacular piece of business, wether SAU develop it or on sell it to a bigger player, SAU will do very well for its investors.

Both from a fundamental and technical perspective, SAU are shaping up very nicely and should SM and team bring significant JORC estimates of Korea to the market the SP will be skyrocket, but until then we will slowly appreciate with news flow from Aus operations and fingers crossed by feb our market cap will of easily doubled.

We are incredibly undervalued and need a lot more marketing, but i am sure that SM will correct in this in the upcoming moths.

Watch this space.

Thoughts ?