Southern Cross Gold Consolidated Ltd. has transitioned its Sunday Creek project into execution, commencing surface works and targeting a maiden inferred resource in early 2027, supported by a robust $123.2 million cash position.
- Surface earthworks underway with underground decline start planned for June 2026
- 200,000m drill program ongoing aiming for maiden resource in Q1 2027
- Net loss narrowed to CAD 2.2 million from CAD 5.5 million prior year
- Cash reserves of CAD 123.2 million provide runway through resource and PEA stages
- Strategic positioning as a key Western antimony supplier amid global supply constraints
Execution Phase Kicks Off at Sunday Creek
Southern Cross Gold Consolidated Ltd (ASX:SX2) is moving swiftly from planning to action at its Sunday Creek gold-antimony project in Victoria, Australia. Following regulatory approval of the exploration decline work plan in late November 2025, the company mobilised surface earthworks contractors in January 2026. Lincolns Earthmoving is progressing infrastructure including water storage and waste rock facilities, while underground contractor Pybar received board approval in March, with decline excavation set to start in June 2026 and completion targeted by December.
This operational momentum is supported by the recent appointments of Ryan Austerberry as COO and Joe Seppelt as Head of Technology & Processing, strengthening execution capabilities as Southern Cross transitions from explorer to developer.
Drilling Delivers High-Grade Intercepts and Expanded Mineralisation
The company’s aggressive 200,000-metre drill program continues with 10 surface rigs active and an eleventh rig mobilising in Q2 2026. The program targets a maiden inferred mineral resource estimate (MRE) in Q1 2027. Recent drilling confirmed that Golden Dyke and Rising Sun form a single connected mineralised system, extending Golden Dyke 200 metres west with 16 new vein sets identified. Notably, drill hole SDDSC188 intersected 12.2 metres at 33.3 g/t gold equivalent (AuEq), including a blistering 0.2 metres at 1,050 g/t gold.
Subsequent to quarter end, the deepest drill hole to date, SDDSC194W1, intersected gold mineralisation approximately 460 metres below the known Golden Dyke footprint, confirming the deposit remains open at depth with at least 50% additional vertical space. This deep intercept, including 6.6 metres at 1.0 g/t gold and a peak assay of 5.4 g/t over 0.9 metres, highlights the project’s significant growth potential at depth and was detailed in a recent report on the deep gold mineralisation below Golden Dyke.
Strong Financial Position Supports Development
Southern Cross reported a net loss of CAD 2.2 million for the nine months ended February 28, 2026, a marked improvement from the CAD 5.5 million loss in the prior comparable period. This narrowing primarily reflects a surge in interest income due to elevated cash balances, which stood at CAD 123.2 million at period end, down from CAD 151.2 million six months prior but still providing a comfortable runway for ongoing operations.
The company spent approximately CAD 28 million over the nine months on drilling, decline development, regional exploration, land acquisitions, and general administration, aligning closely with its stated use of proceeds from a CAD 143 million private placement completed in May 2025. Drilling and geology accounted for CAD 15.4 million, while decline permitting and pre-construction activities consumed CAD 2.9 million.
Strategic Positioning Amid Global Antimony Supply Constraints
Southern Cross is positioning Sunday Creek as a critical Western antimony supplier, capitalising on China’s export restrictions announced in August 2024 that have disrupted global supply chains. The project benefits from proximity to established processing infrastructure, including historic toll treatment at Alkane Resources’ Costerfield mine, and recent metallurgical test work demonstrating high gold recoveries and a high-grade, low-arsenic antimony concentrate.
Capital market milestones this quarter included filing a C$700 million base shelf prospectus in Canada, inclusion in the MVIS Global Junior Gold Miners Index (GDXJ), and the FTSE Gold Mines Index, and lodging a Letter of Intent with the US EXIM Bank, reflecting Southern Cross’s growing institutional profile.
Risks and Outlook
Execution risk has shifted to the construction phase following regulatory approvals, with management mitigating this by appointing experienced contractors familiar with Victorian underground mining. Commodity price volatility, particularly in antimony, remains a principal risk, although the company’s focus on gold economics (approximately 80% of recoverable value) provides some insulation.
Looking ahead, Southern Cross plans to complete surface earthworks, commence underground decline excavation, and maintain an aggressive drilling pace with up to 24 rigs operating concurrently by late 2026. An updated exploration target is expected in Q2 2026, supporting the aim for a maiden inferred resource in Q1 2027 and a preliminary economic assessment by mid-2027.
Bottom Line?
Southern Cross Gold’s robust cash position and drilling progress underpin its transition from explorer to developer, but execution risks and commodity volatility will test its path to resource definition.
Questions in the middle?
- Will the underground decline construction proceed on schedule to enable the planned underground drilling program?
- How will fluctuating antimony prices impact the project’s economics and financing options?
- Can Southern Cross sustain its aggressive drilling pace and convert the exploration target into a formal resource in early 2027?