SQX Resources Advances US Gold Portfolio with Strong Maiden Drilling at Red Bird

Acquisition Unlocks High-Grade US Gold Assets

SQX Resources Limited (ASX:SQX) completed its acquisition of an 80% stake in AM6 Pty Ltd, instantly securing control of two promising US gold-silver projects: Red Bird in Arizona and Williams in Montana. The deal, settled with shares, cash, and performance rights, ties vendor compensation to exploration milestones, reflecting confidence in the projects’ potential.

The acquisition marks a significant pivot for SQX, shifting from Australian exploration to a North American focus, where the company is now positioned to leverage modern exploration techniques on historically productive epithermal systems.

Maiden Drilling at Red Bird Reveals Substantial Gold System

Following swift permitting approval from the Bureau of Land Management, SQX executed a maiden reverse circulation (RC) drilling program at Red Bird, completing 25 holes over approximately 2,500 metres. The program targeted both high-grade veins and broader mineralised halos, aiming to define an open-pit style bulk mineralised system.

Assay results released after quarter-end confirmed a shallow, continuous gold system extending from surface to at least 60 metres depth. Notable intercepts included 45.7 metres at 1.3 grams per tonne (g/t) gold from 4.6 metres and 24.4 metres at 3.1 g/t gold from 22.9 metres, with some intervals hitting grades as high as 8.7 g/t over 4.6 metres. These results validate the presence of a robust epithermal system with both high-grade cores and broader mineralisation, supporting early-stage resource definition and potential open-pit development.
Importantly, the drilling results align with prior underground channel sampling, which returned spectacular grades such as 13.7 metres at 16.0 g/t gold, including 4.6 metres at 38.5 g/t gold, reinforcing the continuity and scale of mineralisation.

This comprehensive dataset lays the groundwork for follow-up exploration, including an induced polarization (IP) geophysical survey designed to identify deeper and strike extensions, a key step in expanding the resource footprint. The recent drilling results confirm a larger, more continuous system than previously interpreted, with mineralisation open in multiple directions and controlled by northeast-striking faults, as detailed in SQX’s recent 25-hole maiden drill program and wide gold intercepts from maiden drilling announcements.

Williams Project Expansion Sets Stage for District-Scale Exploration

Parallel to Red Bird, SQX more than doubled its ground position at the Williams Gold-Silver Project through staking 25 new claims, increasing the total to 45. The expanded footprint captures interpreted strike extensions and additional outcropping veins, enhancing the potential for multiple high-grade shoots within this historically productive epithermal vein system.

This strategic land consolidation aims to enable a district-style exploration approach, allowing multiple targets to be advanced simultaneously through mapping, sampling, and drilling campaigns. The enlarged tenure also improves logistical flexibility for future fieldwork.

Leadership Strengthened to Drive US Growth Strategy

Reflecting its North American ambitions, SQX appointed Dr Julian Stephens as Executive Director, bringing deep expertise in gold-system evaluation and exploration delivery. Executive Chairman Bevan Tarratt also joined the board, adding capital markets and corporate experience critical to scaling the US portfolio. These leadership changes coincide with the transition from acquisition to active exploration and results generation, positioning SQX to execute its growth plans more effectively.

Cash reserves stood at $1.27 million at quarter-end, with $1.01 million spent on exploration activities during the period, underscoring the company’s commitment to advancing its projects despite a modest cash position.

Looking Ahead to Follow-Up Exploration and Resource Definition

SQX plans to complete the IP geophysical survey at Red Bird in the June quarter, which will inform the next drilling phase aimed at extending mineralisation at depth and along strike. At Williams, further geophysical surveys and underground sampling are scheduled to refine targets ahead of potential drilling.

Additionally, the company continues to evaluate its Australian assets at Scrub Paddock and Ollenburgs, although the primary focus remains on advancing the US portfolio. The coming months will be critical to test the continuity and economic viability of Red Bird’s gold system and to unlock value from the expanded Williams claims.