SouthGobi finds gold and silver prospects in Java

Vancouver-based mineral explorer SouthGobi Energy Resources Ltd. announced Monday that it has discovered an encouraging low sulphidation epithermal gold and silver system on its 90% owned project in Java.

The exact location of the project is not being disclosed at present for competitive reasons, the company said.

The discovery is located within an 8-kilometre by 2-3 kilometre structural corridor where other occurrences of sinter, silica caps, high level epithermal veins and anomalous levels of gold and silver have been recently recognized.

According to the company, an initial program of more than 70 trenches has identified numerous high level epithermal veins in an area that is 520 metres wide and 200 metres in length. The veins are open to the southwest and may extend beneath a silica cap and thick soil for an additional 500 metres. Trenching continues to uncover new veins.

SouthGobi plans an initial 3,000-metre diamond drill program which is scheduled to commence early in 2008.

Ivanhoe Mines is SouthGobi's largest shareholder, currently owning approximately 87% of the issued and outstanding shares.

SouthGobi has a 90% fully participating interest in the project through its 100% owned Indonesian subsidiary, PT AGC Indonesia.(alex)