Southern Gold (ASX: SAU) has intersected high grade gold from the expanded reverse circulation (RC) drill program recently completed at its 100%-owned Bulong South Gold Project. The results enhance the potential for adding to resources already in place for the Cannon Trend. Results include: - 5 metres at 7.9 grams per tonne g/t gold from 36 metres; - 4 metres at 5.22 g/t gold from 2 metres; and - 6 metres at 3.2g/t from 17 metres. The Pinner and SW Cannon targets are now considered the highest priority gold targets as a result of the shallow gold mineralisation intersected. Wide zones of low-grade gold mineralisation was also identified in basement rocks at the neighboring Homerton prospect including 35 metres at 0.71 g/t gold. Importantly, the “strike rates” confirm the highly-promising exploration potential of the Cannon Trend and provides strong justification for follow-up drilling programs to define additional gold resources. The latest intersections were designed to test gold targets previously identified by an earlier RAB (rotary air blast) drill program at project, located 35 kilometres south east of Kalgoorlie in Western Australia. Thirty one RC drill holes (totalling 3422 metres) were completed along the Cannon Trend during April 2011. This trend was originally defined by the high gold in soil values detected by the Company and encompasses the previously announced maiden Cannon Gold Resource, the Arsenal, Pinner, Homerton prospects and extends to the Monument prospect. The significance of these latest RC drill results is that they have confirmed a broad gold mineralised system that extends beyond the Cannon Gold Resource to Pinner. The company said follow-up drilling is warranted to define additional gold resources.

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