SQX Confirms Expanding Gold System at Red Bird with High-Grade Near-Surface Intercepts

Maiden Drilling Defines Larger, Continuous Gold System

SQX Resources Limited (ASX:SQX) has confirmed that its maiden drilling campaign at the Red Bird Gold Project in Arizona has delineated a gold system more extensive and continuous than historical data suggested. The 25 reverse circulation holes, totaling 2,509 metres, have revealed thick, high-grade mineralisation near surface across two stratigraphic horizons, controlled by a major northeast-striking fault.

Key intercepts include 22.9 metres at 2.8 grams per tonne gold from 42.7 metres depth (including 4.6 metres at 8.7g/t Au) and 15.2 metres at 2.2g/t Au from 13.7 metres, confirming the presence of robust mineralisation that remains open along strike and at depth. This continuity is critical for potential bulk-tonnage, open-pit economics.

Fault-Controlled Strata-Bound Model Guides Exploration

The drilling results support a fault-controlled strata-bound model where gold concentrates within low-dipping limy conglomerate units adjacent to the controlling fault. Mineralisation coalesces in the hanging wall of this structure, which is interpreted as a primary feeder zone with potential for significant mineralisation at depth.

Interestingly, intercepts west of the main mine area in the footwall reveal a new, largely untested zone of prospectivity, suggesting the system’s true scale is yet to be fully understood. This opens additional avenues for exploration beyond the historical workings.

Geophysics and Regional Assessment to Drive Next Steps

To build on these encouraging results, SQX has mobilised an induced polarisation (IP) geophysical survey aimed at identifying repeats of the host limy conglomerate units and testing for deeper mineralisation along the fault. Concurrently, a regional assessment of alteration zones within the claim area is underway to prioritise targets for follow-up drilling.

The company’s Executive Director, Dr Julian Stephens, highlighted that the results continue to exceed expectations and that the project is still in its early stages. This follows a recent phase where SQX extended near-surface gold mineralisation with high-grade intercepts, reinforcing the open-pit potential of Red Bird and setting the stage for further exploration near-surface gold mineralisation.

Balancing Historical Legacy with Modern Exploration

Red Bird’s historical significance as a gold mining district is well documented, with underground development dating back to the early 20th century and systematic work by Homestake Mining in the 1970s and 1980s. SQX’s modern, systematic approach has validated and expanded upon this legacy, applying contemporary geological techniques and comprehensive sampling protocols to better define the mineralisation.

The company’s rigorous QAQC procedures and detailed logging ensure the reliability of assay data, while the use of modern geophysical tools aims to unlock further potential at depth and along strike. However, some drill intercepts remain oblique to mineralisation controls due to terrain and existing workings, introducing uncertainty around true widths that future drilling will need to clarify.

What Lies Ahead for Red Bird?

With the maiden drilling program complete and geophysics underway, SQX is poised to refine its understanding of the Red Bird system’s geometry and scale. The identification of multiple mineralised horizons and a controlling fault structure provides a clear roadmap for targeted expansion drilling.

Yet, the economic viability of the system remains to be established. Further drilling, metallurgical testing, and resource estimation will be essential to translate these promising intercepts into a defined resource with mining potential. Investors should watch closely for updates on the IP survey results and subsequent drill programs that will test deeper and strike extensions.