High - Grade Gold and Base Metals Encountered on Cambodian Tenements HIGHLIGHTS • Southern Gold Limited (SAU) has signed a Letter of Agreement with Cambodian Company, Greystoke Limited, to joint venture on their Memorandum of Understanding (MOU’s) at Snuol and Mount Romdul. • Preliminary sampling on the Snuol MOU area returned gold values from 3.69 g/t up to 71.2 g/t and copper up to 0.94% from artisinal mine workings. • Preliminary soil sample results from the Romdul MOU indicate a strongly anomalous zone of gold mineralisation in calcareous host rocks around the margin of a fine-grained diorite intrusive with evidence of epithermal mineralisation. • On the Okvau (P. Khlong) MOU held 100% by SAU a new discovery of gossan and quartz vein sets produced gold values between 0.74g/t and 1.29 g/t with highly elevated levels of lead (0.94%) and silver (130g/t) • SAU has commenced negotiations with the Ministery of Industry Mines and Energy for the conversion of its MOU’s to Exploration Licences Southern Gold has identified a number of high-grade gold and base metal targets from its recently completed preliminary geological mapping and geochemical sampling program of tenements held in Cambodia. The indicated potential of the geology of this region has encouraged Southern Gold to expand its interest into 5 tenements in eastern Cambodia covering 1155 km2. Exceptionaly encouraging exploration results are being recorded from all these tenements as a better understanding of the mineralisation models is achieved. Southern Gold also notes Oxiana's reporting in their recent Quarterly Report of several high-grade gold drilling results from Oxiana's Shin-Ha Joint Venture project, which is adjacent to Southern Gold's O’Khtong project in eastern Cambodia. Mineralisation is dominated by sulphide rich, fine comb quartz veins. These styles are typical of shallow plutonic environments with dioritic intrusives. The veins are very similar in character to those at Ravenswood, North Queensland, Australia. The Ravenswood camp has a range of mineralisation styles including large vein, stock work and breccia pipe and produced close to 3 M oz of gold. The company has assessed a number of artisinal mining areas and has defined high priority targets for immediate detailed geochemical sampling and geological mapping, (Figure 1) leading to drilling mid 2007.
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