Environmental and Community Commitments Tested as Southern Cross Gold Moves Underground

Southern Cross Gold has secured approval for its underground exploration tunnel at the Sunday Creek project, marking a pivotal step towards mine development and enhanced resource definition.

  • Work Plan approval received for underground exploration tunnel at Sunday Creek
  • Tunnel enables detailed geological mapping and precision drilling underground
  • Design refined to minimize environmental and community impacts
  • Construction expected to take 6-9 months with ongoing community engagement
  • Project positioned as a globally significant gold and strategic antimony discovery
An image related to Southern Cross Gold Consolidated Ltd.
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A Milestone in Exploration to Development

Southern Cross Gold Consolidated Ltd (ASX, SX2) has announced a significant advancement in its Sunday Creek gold-antimony project in Victoria, Australia, with the approval of its underground exploration tunnel Work Plan. This approval represents a crucial transition from surface exploration to underground access, enabling the company to conduct more detailed and precise investigations of the high-grade mineralization that has been identified over the past three years.

The exploration tunnel, also referred to as a decline, will provide Southern Cross Gold with the ability to perform detailed geological mapping, collect geotechnical data essential for mine design, and execute precision drilling underground. This approach is expected to greatly enhance the company’s capacity to delineate the resource both along strike and at depth, surpassing the limitations of surface drilling alone.

Balancing Progress with Environmental and Community Care

Southern Cross Gold has emphasized its commitment to environmental stewardship and community engagement throughout the planning and approval process. The tunnel design was carefully refined to minimize impacts on the environment, cultural heritage sites, and local communities. Notably, underground drilling will reduce the need for continuous 24-hour surface drilling operations and decrease the number of surface drill pads, thereby protecting native vegetation and heritage features.

The company has pledged ongoing communication with nearby residents and stakeholders as site establishment and construction activities commence. Construction of the tunnel is expected to take between six to nine months and will adhere to strict operational controls to safeguard people, the environment, and infrastructure.

Strategic Significance of Sunday Creek

Sunday Creek stands out not only for its gold potential but also for its strategic antimony content, which contributes approximately 20% of the in-situ value. Antimony is a critical metal with growing importance in defense, semiconductor applications, and supply chain security, especially given recent geopolitical developments and export restrictions impacting global supply.

Southern Cross Gold’s strong cash position, extensive land holdings, and a planned 200-kilometer drilling program through early 2027 position the company well to advance this discovery. The approval of the underground tunnel is a pivotal step that supports the company’s vision of developing Sunday Creek into a globally significant gold producer with a strategic antimony supply chain advantage.

Looking Ahead

With the Work Plan approval secured, Southern Cross Gold is poised to accelerate its exploration and technical studies. The expanded drilling program will continue to refine the resource, while engineering and environmental work progresses in parallel. The company’s collaborative approach with government agencies and the Taungurung people underscores its commitment to responsible development.

As underground construction begins, investors and stakeholders will be watching closely for updates on drilling results, resource delineation, and further regulatory milestones that will shape the project’s path toward commercial production.

Bottom Line?

Southern Cross Gold’s underground tunnel approval marks a decisive step forward, but the journey to production will require careful navigation of technical, environmental, and community challenges.

Questions in the middle?

  • How will underground drilling results impact the current resource estimates at Sunday Creek?
  • What are the expected capital expenditures and timelines beyond tunnel construction for mine development?
  • How will Southern Cross Gold manage ongoing environmental approvals and community relations during expanded operations?