Reported in Australia, that “Southern Gold Ltd (ASX:SAU) reports it has established an inferred geothermal resource of 260,000 PJ within GEL 302 in South Australia.

GEL 302 represents 5pc of the newly named Roxby Geothermal Project, which comprises four granted GELs and 18 GEL applications, and covers an area of 10,000 sq km over one of Australia’s largest geothermal hotspots.

The large geothermal resource confirms that the heat flows measured by Southern Gold on the Roxby Geothermal Project (previously named “Torrens”) provides a strong basis to progress investigations towards commercial development of an Engineered Geothermal System (EGS).

Southern Gold has one of the largest strategic geothermal land holdings in an area that hosts growing energy markets, including the world-class Olympic Dam and Prominent Hill mines.

The proposed Olympic Dam expansion is forecast to consume close to half of the state’s power supply.

The Roxby Geothermal Project is also strategically located to straddle the existing 275Kv and 132Kv power lines that connect Olympic Dam and Prominent Hill mines to the national power grid at Port Augusta.

Southern Gold says it is well-positioned to prepare its application for the anticipated second round of the $50m Federal Government Geothermal Drill Program.”

Source: iStockAnalyst