Southern Cross Gold Expands Sunday Creek Target to 4.6 Moz AuEq

Exploration Target Growth and Scale

Southern Cross Gold Consolidated Ltd (ASX:SX2) has significantly expanded the Exploration Target at its 100%-owned Sunday Creek Gold-Antimony Project in Victoria. The updated target now estimates between 10.4 and 11.9 million tonnes grading 8.9 to 12.1 g/t gold equivalent (AuEq), translating to 3.0 to 4.6 million ounces AuEq across five key prospects: Christina, Golden Dyke, Rising Sun, Apollo, and Apollo East. This represents a substantial increase in both strike length; now over 1,500 metres; and prospect count, with Christina included in the target for the first time.

The target is conceptual and based on 125 vein set shapes constrained by diamond drilling data, reflecting the early-stage nature of the project. Southern Cross cautions that there has been insufficient exploration to define a Mineral Resource, and future drilling will be critical to confirm continuity and resource potential.

Intensive Drilling Program Underway

The company is aggressively advancing its drill program, with nine diamond rigs currently turning on site and two more testing regional targets up to 8 km from the core area. To date, 130.6 km of drilling has been reported, with 35 km of core awaiting assay results. Southern Cross plans to complete an additional 135 km of drilling by the end of calendar Q1 2027, aiming to extend known mineralization and explore new zones along the 11 km mineralized corridor.

President and CEO Michael Hudson emphasised the momentum, stating, "Every hole we drill either extends what we know or opens something new. The path forward is clear. The geology keeps delivering. Our job is to keep drilling." This aligns with recent results that have connected mineralization over 481 metres between Christina and Golden Dyke, confirming continuity of high-grade veins across multiple prospects.

Metallurgical Advances Support Project Economics

Stage 2 metallurgical test work reported in August 2025 demonstrated promising processing characteristics, with overall gold recoveries between 92.3% and 95.6% across three product streams: gravity gold concentrate, antimony-gold flotation concentrate, and sulphide concentrate. The antimony-gold concentrate is particularly notable for its high grade (48.2–53.1% Sb) and low arsenic content (0.1–0.2%), well below smelter thresholds, enhancing its marketability.

These results underpin the project’s dual-metal profile, combining gold with critical antimony; a metal essential for defence, semiconductor, and energy transition applications. With China controlling over half of global antimony supply, Southern Cross’s project gains strategic importance, especially given its inclusion in the US Defense Industrial Base Consortium and alignment with Australia’s AUKUS-related critical minerals initiatives.

Strategic Landholding and Regulatory Progress

Southern Cross holds 1,392 hectares of freehold land encompassing the core drill area, alongside a granted Retention Licence (RL6040) and surrounding Exploration Licences. All necessary approvals for exploration drilling have been secured, including cultural heritage clearances in cooperation with the Taungurung Land and Waters Council. Construction of a 1.2 km exploration decline is underway, further supporting underground access and expanded drilling capacity.

The company’s geological modelling partner, SRK Consulting, continues to assist with data integration and resource evaluation, aiming to support a future Mineral Resource Estimate as drill density and geological continuity improve.

Sunday Creek’s Geological Context and Future Prospects

Sunday Creek is an epizonal gold-antimony deposit within the Melbourne Structural Zone of the Lachlan Fold Belt, characterised by a “Golden Ladder” structure of multiple cross-cutting vein sets extending from surface to depths exceeding 1,200 metres. High-grade intercepts include veins up to 10 metres wide and grades reaching thousands of grams per tonne in some composites.

Despite substantial drilling success, the project remains open along strike and at depth, with recent drill intersections outside the current Exploration Target boundary hinting at further upside potential. The company’s ongoing 200,000-metre drill campaign through Q1 2027 is designed to systematically test these extensions and refine the geological model.