Australian mining firm begins drilling in Cambodia

(DPA)

28 November 2007


PHNOM PENH - Australia’s Southern Gold Ltd has commenced mining for gold in north-eastern Cambodia, the company said Wednesday.


In a statement also released to the Australian Stock Exchange, Southern Gold said it had started ‘its first drilling campaign in Cambodia’ at its 80-per-cent-owned Snoul Prospect in the south-eastern province of Kratie.

Southern Gold and another Australian mining giant, Oxiana Ltd, have taken out adjoining lots in the remote area with both reporting promising pre-drilling exploration findings on gold and base metals. Oxiana already operates the massive Sepon gold mine in neighbouring Laos.

Southern Gold - which like Oxiana also mines for base metals, including lead and zinc - said it expected first assay results in early 2008.

Environmentalists have expressed concern as mining companies flock to newly opened Cambodia, concerns the Cambodian government has said are unfounded.

Chinese mining companies are exploring for iron ore in the country’s north, and Australia’s BHP Billiton, the world’s largest mining company, has reported promising finds in initial explorations for bauxite in the eastern province of Mondulkiri and also has interests in as yet untapped anticipated off-shore oil reserves.