SAU (ASX) Ann: Annual Report 2017

Originally posted by Dingoheeler ↑

I think SAU's SP being stuck in neutral, post Cannon results, isn't such a bad performance versus most other juniors. Gold price increasing into the new year, once this washout is over, could bode well for the share price.

On a negative note, Weolyu drilling looks like it's been a big disappointment so far. For those pictured cores, results would have been released by now, if they weren't gangue. Slow and expensive misses, makes me think Weolyu could be deprioritised in favour of other drilling targets. For a drill program, started May 1 and now 5 months later, not anything. This is disappointing to me, depite it being part and parcel of green fields exploration. Quote from Annual Report.

"South Korea – Exploration

Exploration in South Korea is comprised of two parts:

1. Surface sampling, mapping and drilling activity at the Kochang and Weolyu projects; and

2. Project generation activities where experienced geologists are following up leads on the ground in new poorly explored areas of the country.

In regards to work at Kochang and Weolyu, Southern Gold has had some good on the ground success although drilling productivity has been poor and hence per metre drilling costs relatively high. The company is currently working on alternative drilling solutions to improve our performance in both categories. Independent of this drilling both Kochang and Weolyu are now de ned as a one

to two kilometre scale mineralised systems with excellent potential. Ore grade rock chip results have been returned in both locations (peak results >27g/t Au at Kochang and >1000g/t Ag at Weolyu) although these are yet to be replicated in drilling.

The next step at Kochang is to achieve underground access and to inspect and sample the high grade shoots that were mined historically. At Weolyu further drilling will be conducted to test targets de ned by surface mapping. Both are exciting projects that have the potential to generate relatively high grade mineral resources after completion of extensive exploration."

We are only a 15 million MC company, in good shape, with Cannon and Gubong looking great. Weolyu still could be great, however, not sure if SAU can continue drilling there until they sort something out.

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Well DH, at last, we can agree on something - the news flow has ceased and the drill results from SK are totally underwhelming. Correct me if I'm misreading, but hasn't Gubong merely shown some promising "surface anomalies" - BMV have entered the UG system (which has 50km to explore), but not found anything yet let alone commenced drilling - smoking POTential makes some people high but not 'moi' - SMTM.
I've been reassured that Cannon UG will CF positive, but not a company maker, .... news is well overdue.
Here's a thought - let's make the granting of options contingent on real, tangible, bankable success in SK ??
After all, SM bought this to SAU and has been well rewarded for doing so, and the board is crowing about their prowess for doing so, and hence claiming rich rewards, for gold yet to be discovered let alone mined!
Credit where credit is due, incentives where incentives due - no brownies for POTential stories - SMTM !

Well DH, at last, we can agree on something - the news flow has...