Southern Cross Gold Unlocks Underground Access, Boosts Sunday Creek Drilling

Regulatory Breakthrough Unlocks Underground Access

Southern Cross Gold Consolidated Ltd. marked a transformative quarter with the Victorian Regulator's approval of the Work Plan for an underground exploration decline at its Sunday Creek project in Victoria, Australia. This approval, announced in late November 2025, clears the way for construction to commence in January 2026, enabling the company to access mineralisation at depth and significantly accelerate resource definition.

The 1,000-metre decline will allow deployment of up to 12 underground drill rigs, complementing the existing 10 surface rigs. This combined effort will create Australia's largest pre-development drilling program, positioning Sunday Creek for a maiden inferred resource estimate targeted for the first quarter of 2027.

Robust Drilling Results Reinforce Project Potential

As of early January 2026, Southern Cross Gold has reported over 107,000 metres of drilling across 235 holes at Sunday Creek. The results include 73 gold intercepts exceeding 100 grams per tonne, with standout grades up to 3,511 g/t over 0.7 metres. Antimony intercepts are equally impressive, with 90 exceeding 10% Sb and some assays reaching 47.5% Sb.

Notably, drilling confirmed that the Golden Dyke and Rising Sun prospects form a single, continuous mineralised system, expanding the project's tonnage potential. High-grade continuity was also demonstrated at Rising Sun and Apollo prospects, with mineralisation open at depth and along strike, underscoring significant exploration upside.

Financial Position Supports Strategic Growth

Southern Cross Gold reported a net loss of $1.6 million for the six months ended November 30, 2025, an improvement from a $3.1 million loss in the prior year period. The company ended the quarter with $130.4 million in cash and equivalents, providing a strong financial runway to fund its aggressive drilling and development plans through resource definition and preliminary economic assessment (PEA) completion by mid-2027.

Expenditure during the period focused on drilling ($10.3 million), decline permitting and preparation ($1.5 million), regional exploration, land acquisitions, and general administrative costs. The company remains on track with its use of proceeds from a $143 million private placement completed in May 2025.

Strategic Positioning Amid Global Antimony Supply Constraints

Southern Cross Gold is advancing as a potential key Western supplier of antimony, a critical mineral experiencing supply pressures due to China's export restrictions implemented in 2024. The company's membership in the US Defense Industrial Base Consortium and successful metallurgical test work demonstrating high gold recovery and low-arsenic antimony concentrate further enhance its strategic profile.

With 1,392 hectares of strategic freehold land securing the project footprint and proximity to established processing infrastructure, Sunday Creek is well positioned to meet growing demand for gold and antimony in defence and semiconductor supply chains.

Community Engagement and Operational Readiness

Southern Cross Gold maintains strong community relations through regular communication, public tours, and grants programs. Safety performance remains exemplary with zero lost time injuries during the period. The recent appointment of a Chief Operating Officer strengthens operational leadership ahead of decline construction.

Looking ahead, the company plans to commence decline construction in January 2026, continue its extensive surface drilling program, and ramp up underground drilling upon decline completion. These efforts aim to deliver a robust inferred resource and advance the project towards economic viability.