Crescent Gold Limited
ASX : CRE
TSX : CRA
FRANKFURT : CRE5

Crescent Gold Limited
Southern Gold Ltd
ASX : SAU

June 05, 2007 21:50 ET

Crescent Gold Limited and Southern Gold Ltd: Drilling to Start on IOCGU Targets Near Carrapateena, Sth Australia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 5, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Crescent Gold Ltd (TSX:CRA)(ASX:CRE)(FRANKFURT:CRE5) and Southern Gold Ltd (ASX:SAU) are planning to drill at least 5 high priority IOCGU targets on the Torrens South Joint Venture near Carrapateena in South Australia. The gravity anomalies are interpreted as dense hematite alteration systems.

An additional 8 IOCGU targets have been identified from the recent detailed gravity surveys completed by Southern Gold. Over 3,900 gravity stations at 250m spacing were completed in early 2007. Nine target areas in total were geophysical modelled - highlighting anomalous dense volumes below surface (Figure 1).

The initial drilling program comprises at least 5 holes with a maximum depth 1000m. The drilling results recently reported by Teck Comico (including 905m @ 2.1%Cu, 1g/t Au) from nearby Carrapateena highlight the magnitude of targets in this environment. Some of the new gravity targets on the Torrens South JV are 10km SE along strike from the Punt Hill discoveries being drilled on the adjacent tenement.

The Torrens South JV consists of two tenements (EL 3513 and EL 3515) encompassing approximately 1,500 square kilometres located on the eastern margin of the Gawler Craton within the Olympic IOCGU Province, host to the world-class Olympic Dam deposit, Prominent Hill and recently discovered Carrapateena prospect and Punt Hill. This further highlights the prospectivity of the Torrens South JV.

Further regional and detailed gravity surveys to verify gravity anomalies are planned. Further drilling at Tycoon, Mogul and Tsar Targets Areas is anticipated once this extra gravity is acquired later this month (Figure 2).

Crescent Gold is fully funding this program by spending $4,000,000 by 31/12/2008 to earn 50% in the Torrens Project.

Discussions are currently underway with drilling contractors to enable this deep drilling program to start within 8 weeks.

The information in this report has been compiled by Stephen Biggins (BSc(Hons)Geol, MBA) as a full-time employee of Southern Gold and who is a member of the Australasian Institute of Mining and Metallurgy and is bound by and follows the Institute's codes and recommended practices. As a Competent Person, he has a minimum of 5 years relevant experience in the style of mineralisation and types of activities being reported and has given written consent to the above report in the form and context in which it appears.

Figure 1. Residual Gravity Image and Drillhole locations, Torrens South Project, South Australia. To view this figure please click on the following link: http://www.ccnmatthews.com/docs/CRAA.jpg

Figure 2. Additional Gravity Survey areas (red outline) overlain on residual gravity image and showing current gravity station locations. To view this figure please click on the following link: http://www.ccnmatthews.com/docs/CRAB.jpg

Figure 3 - Close up of Gravity Target 3 and 4. To view this figure please click on the following link: http://www.ccnmatthews.com/docs/CRAC.jpg

Figure 4 - Close up of Gravity Target 5. To view this figure please click on the following link: http://www.ccnmatthews.com/docs/CRAD.jpg



SHARE INFORMATION
ASX Share Price: A$0.39
Issued Shares: 259.2m
Market Cap: A$101.1m
Options unlisted: 50.9m

FULLY DILUTED BASIS
Shares: 310.1m
Cash on dilution: A$12.7m

RESOURCES
Indicated: 0.95m ozs
20.1mt
1.5g/t
Inferred: 0.48m ozs
10.4mt
1.4g/t

RESERVES
Probable: 0.40m ozs
7.6mt
1.7g/t

RESOURCE
Market Cap/oz: A$71/oz

RESERVE
Market Cap/oz: A$253/oz


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