Nov 13, 2024

Southern Cross Gold Hits 1.3m @ 52.6 g/t Gold at Sunday Creek, Victoria

Introduction:

Southern Cross Gold Ltd (ASX:SXG) (Market Cap: $609M | Last Close: $3.07 | Cash: ~$10.6M) has reported results from five navigational diamond drill holes at the Rising Sun prospect, part of its 100%-owned Sunday Creek Gold-Antimony Project in Victoria, Australia. The drilling program confirmed continuity of high-grade vein sets and intercepted new mineralized zones.

Drill Results:

1.3m @ 52.6 g/t AuEq (52.6 g/t Au, 0.0% Sb) from 730.0m (SDDSC050W2)
0.1m @ 173.0 g/t AuEq (173.0 g/t Au, 0.0% Sb) from 739.1m (SDDSC050W2)
0.3m @ 81.4 g/t AuEq (62.2 g/t Au, 10.2% Sb) from 674.3m (SDDSC092W3)
0.6m @ 10.1 g/t AuEq (6.3 g/t Au, 2.0% Sb) from 636.1m (SDDSC092W3)‍
3.4m @ 3.1 g/t AuEq (0.9 g/t Au, 1.2% Sb) from 666.9m (SDDSC092W3)

Project Overview:

The Sunday Creek project is located 60 km north of Melbourne within 19,365 hectares of granted exploration tenements. Southern Cross Gold also owns 133.29 hectares of freehold land covering the key portion of the main drilled area.

The project hosts epizonal-style gold-antimony mineralization in a series of vein sets that extend from surface to over 1,100m depth. The mineralized system has been defined over 1,350m strike length, with approximately 620m intensively drill tested to date.

Program Details:

The recent drilling program utilized navigational diamond drilling techniques to test continuity of high-grade vein sets at close spacing (12-25m). The program successfully demonstrated predictability of mineralized structures, consistency of grade distribution, and discovered additional gold-antimony mineralized vein sets in previously untested areas. A total of 146 drill holes for 63,913.89m have been completed by Southern Cross Gold at Sunday Creek since late 2020.

Understanding These Results:

The navigational drilling confirmed geological and grade continuity of multiple high-grade vein sets at the Rising Sun prospect. The Coefficient of Variation maintained a consistently low value (~1.6) before and after detailed drilling, providing confidence in the geological model and grade consistency.

Intercepts such as 1.3m @ 52.6 g/t Au from 730.0m in SDDSC050W2 demonstrate the high-grade nature of the mineralization. The discovery of new mineralized zones in previously untested areas suggests potential for further expansion of the resource with increased drilling density.

Management Commentary:

Michael Hudson, Managing Director of Southern Cross Gold:

"Understanding grade continuity is crucial for highgrade gold deposits. The NAVI drill program demonstrated predictability of mineralised structures and showed the CV maintained a consistently low value (~1.6) before and after the detailed NAVI drilling. Low variability or low CV lowers geological risk and reduces the cost of capital, requiring less drilling to provide more confidence in the geological model.”

“Additionally, the discovery of new gold-antimony mineralised vein sets intersected by the detailed drill spacing where earlier broader spaced drilling had not previously tested augurs well for discovery of further mineralisation with increased drilling density.”

“SXG continues to expand and derisk this globally significant gold discovery with 12 holes currently being processed and analysed, and five holes in progress as part of an ongoing 60 km drill program, that is set to more than double the drill metres into the Sunday Creek project over the next year.”

Next Steps & Catalysts:

Twelve holes are currently being processed and analyzed, with an additional five holes in progress. Five drilling rigs are currently operating at Sunday Creek, with a sixth rig due to arrive in late November 2024.

Southern Cross Gold plans to complete 60 km of diamond drilling at Sunday Creek over the next year, more than doubling the total drill meters at the project. This extensive program aims to further expand and derisk the discovery.

Commodity Outlook:

Gold serves multiple markets, including investment assets, central bank reserves, jewellery manufacturing and industrial applications in electronics. Currently trading at US$2,622/oz (November 12, 2024), the metal has experienced record highs in 2024 despite recent volatility linked to U.S. political shifts and Federal Reserve policy expectations.

Sunday Creek is an epizonal gold-antimony deposit, with antimony representing approximately 20% of the in-situ recoverable value. Antimony is classified as a critical metal by many countries, including Australia and the United States. Recent export restrictions announced by China, the dominant global supplier, are expected to positively impact pricing and demand for new western antimony sources like Sunday Creek.

Conclusion:

The latest drilling results from Sunday Creek continue to demonstrate the high-grade nature and continuity of the gold-antimony mineralization. With ongoing exploration success and plans for extensive further drilling, Southern Cross Gold is advancing what appears to be a globally significant gold discovery with strategic antimony credits. The project's potential for both precious and critical metals positions it favorably in the current market environment.

Sources:

SXG Drill Results Announcement

Additional Figures:

Australia

ASX

Gold

Nov 7, 2024