Japan Oil, Gas and Metals National Corporation (JOGMEC) and Southern Gold have formed a joint venture to accelerate exploration on three Cambodian gold and base metals projects.

The joint venture between the Japanese government organization and the Australian mining company will see JOGMEC spend a minimum of US$1 million on the projects over the next 12 months as part of a total US$4.5 million investment over 3 years to earn a 51% interest in the three tenements.

The three exploration licences are Phnum Khtong (Kratie North Project) and two adjoining blocks, Preak Khlong and O’Kthung (Kratie South Project), all to the northeast of Phnom Penh.

They are among eight gold and base metal projects wholly or majority owned by Southern Gold under its ‘first mover’ strategy to establish a cornerstone gold business in Cambodia to compliment the company’s Australian gold focused projects across three states.

The joint venture is the first Japanese, and JOGMEC’s first, investment in Southern Gold’s projects.

Southern Gold is flying one of Cambodia’s largest airborne geophysical surveys on its wholly owned and joint venture projects. The company believes the detailed 16,000 line kilometre survey will lead to better understanding of gold and base metal mineralization in NE Cambodia.

JOGMEC objectives are to secure a stable supply of oil, natural gas, nonferrous metals and minerals to Japan. It usually acquires an option for an equity interest in a project and if results of exploration are positive, then the equity interest is transferred to a Japanese private-sector company.

www.southerngold.com.au