Southern Cross Gold has listed on the ASX with an existing gold-antimony discovery and enough funding to keep the drill bit spinning until 2024, a serious difference from many of its peers.

More than 12,000m of drilling has already been carried out on its projects in the Melbourne Zone in central Victoria, the majority at its flagship Sunday Creek project that features eight 100 gram per tonne X metre intercepts – well above the minimum result for at least one major gold company to declare a major discovery.

Assays are also pending for the most recent 2,200m of diamond drilling that was carried out over the last three months prior to listing.

With Southern Cross Gold (ASX:SXG) already well past the early exploration stage, it is no surprise then that its pre-IPO raise brought in $2.7m of funding at 16c per share which along with funds from the IPO, have brought its total war chest up to $9.5m.

This is enough for the company to fund drilling into 2024 and acquire 300 acres of freehold land at Sunday Creek.

Shares in the company were up 5% from their list price of 20c.

“We have a fantastic drill hit rate for an early stage project. Three 100g/t x metres hits are considered a good rule of thumb for a bona fide discovery by some of the largest gold companies,” managing director Michael Hudson said.

“With eight intersections exceeding this threshold at Sunday Creek, we are starting with a very strong base.”

The company, a spin-off from Canada’s Mawson Gold, intends to keep the drill bit spinning and the assay results flowing on a regular basis.

It recently flagged that its listing would be followed closely by assay results from between 8 and 10 holes.

“We did everything we said we would do in terms of capital raise, drilling and timing and we are happy to bring these great assets back home to Australia,” Hudson added.

 

Central Victorian projects

Sunday Creek, the company’s wholly-owned flagship project, extends over 10km of old mines, soil sampling and early stage work.

While most historical work has focused in and around the old mines, step-out drilling by the company has already returned some strong results including 3m grading 41.4g/t gold and 12% antimony within a broader zone of 11.7m at 12.4g/t gold and 3.6% antimony.

With just 10% or so of the identified strike tested to date, this leaves Southern Cross with plenty of ground in which to find more gold.

Meanwhile, its Whroo and Redcastle joint ventures with Nagambie Resources (ASX:NAG) – in which the company holds a 10% stake – are also attractive projects in their own right.

At the 14km historical Whroo goldfield, the deepest hole ever drilled only went to 100 metres, which the company believes missed the real prize.

Its subsequent drilling to a vertical depth of just 200m returned the best result on the field since mining began 167 years ago.

Meanwhile, Redcastle is interpreted to be an extension of the +2Moz Costerfield mine corridor that is just a few km to the south.

This article was developed in collaboration with Southern Cross Gold, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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