Australia's Southern Gold has teamed up with the Japan Oil, Gas and Metals National Corporation (JOGMEC) to accelerate exploration on three Cambodian gold and base metal projects, the company announced today.
Work on the Southern Gold-owned exploration licences was confirmed by a letter of intent with the Japanese organisation in March this year.
The three tenements; Phnum Khtong (Kratie North Project) and two adjoining blocks, Preak Khlong and O'Kthung (Kratie South Project), are located northeast of Phnom Penh.
Under the terms JOGMEC will spend a minimum of US$1m on the projects over the next 12 months before withdrawing, part of a US$4.5m (A$4.94m) investment over three years to earn a 51 percent interest in the mines.
Southern Gold says it is currently conducting one of Cambodia's largest airborne geophysical surveys on both its wholly owned and JV projects, to enhance the targeting of gold and base metal mineralisation in northeast Cambodia.
JOGMEC was set up to secure a stable supply of oil, natural gas, non-ferrous metals and minerals to Japan.
By Ozge Ibrahim
