Southern Cross sets a cracking pace as it drives for Sunday gold

While Southern Cross Gold has kept up a blistering pace with multiple high-grade gold-antimony hits at its Sunday Creek project in Victoria since it listed in May this year.

And the company has no plans to slow its momentum down with managing director Michael Hudson telling Stockhead that it was in fact looking at options to accelerate drilling by increasing the number of rigs further from the current two rigs turning 7 days a week, to explore the 11km system at Sunday Creek as well as other prospects at Redcastle and Whroo.

It is not hard to see why Southern Cross Gold (ASX:SXG) is so keen to uncover just how rich the project could be given that recent drilling has returned impressive results such as 119.2m grading 3.2 grams per tonne (g/t) gold and 0.4% antimony from a depth of 106.8m.

Just as importantly, the company is now sitting on no less than 15 >100 AuEq gram-metre intercepts (gold equivalent grade multiplied by intersection width) since it started drilling two years ago.

This is hugely positive as just three such intercepts are considered to be a substantial gold discovery by some of the largest gold companies in the world.

Well-resourced for all-year drilling

The company also remains well funded from its $9.1m IPO in May to keep up the drill momentum.

“We are fully permitted and own the freehold around the land we are drilling at Sunday Creek which locks in access to the area,” Hudson added.

“We are in an envious position with no let up. It is not often in my career I can say we are fully permitted with all-year-round drill access. Not even the recent wet weather has been an issue as we are in a hilly and lightly forested region, outside cropping areas with well-established bush tracks. We look forward to releasing more results from the ongoing two rig drill program that is now delivering 1,500 metres/month“

Plenty of potential

While the company’s work at the epizonal-style Sunday Creek project has been incredibly successful over a 1km strike down to 400 m vertical depth, it is worth noting that its work to date covers just 10% of the identified strike to date.

A 10km mineralised trend extending to the north-east beyond the drill area is defined by historical workings and soil sampling and has yet to receive any exploration drilling to date.

Likewise both its Nagambie Resources (ASX:NAG) joint ventures with Nagambie Resources (ASX:NAG) – in which the company holds a 10% equity stake – are attractive projects in their own right.

At the 14km historical Whroo goldfield, Southern Cross drilling to a vertical depth of just 200m returned the best result on the field since mining began 167 years ago with several intersections topping up at 0.6m at 49.7g/t gold from 324.9m.

Meanwhile, Redcastle was first discovered in 1859 and was the subject of underground mining until 1902. It is interpreted to be an extension of the +2Moz Costerfield mine corridor that is just a few km to the south with 17 km of untested high grade mined structures untested to depth.

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.