Southern Cross Gold

MICHAEL HUDSON

MANAGING DIRECTOR

(ASX:SXG)

◾ Company Name: Southern Cross Gold ◾ Company ASX code: SXG ◾ Key Commodities: Gold and antimony ◾ Key Personnel: Michael Hudson, Managing Director | Thomas Eadie, Non-Executive Chairman | Georgina Carnegie, Non-Executive Director | David Henstridge, Non-Executive Director ◾ Locations: Victoria ◾ Market Cap as of 15/08/22: $28.64M ◾ FY22 Share price range – Low/High: $0.190 / $0.780 ◾ Company Website: southerncrossgold.com.au

COMPANY PROFILE

Southern Cross Gold hit the ground running since listing on the ASX in mid-May as a spin-off from TSXlisted Mawson Gold and has kept up a breakneck pace since then with two rigs currently operating at its flagship Sunday Creek gold-antimony project just 60km north of Melbourne.

And the strong level of activity is showing some rich rewards indeed and its exploration efforts have underscored Sunday Creek’s status as one of Victoria’s best new discoveries in modern times.

Sunday Creek already contains thirteen >100 AuEq gram-metre intercepts (grade multiplied by intersection width) – an intriguing development given that just three >100 gram-metre intercepts is reason enough for some of the largest gold companies to declare a bona fide discovery.

Drilling has also intersected highgrade gold, uncovered evidence of depth continuity within the Apollo Shoot to a depth of at least 350m, and encountering enough antimony that it looks like a potential by-product. The company recently purchased 320 acres of freehold land over the key drill area to ensure future access is secured.

All this makes for a remarkable discovery, but it doesn’t end there. All of the company’s operations to date have been focused on a core area covering just 1km of strike, leaving another 10km of ground at Sunday Creek where old mines and 1000’s of soil sample define extensions to mineralisation without a single modern drill hole test.

What makes it even more amazing is that despite the presence of historical workings – some stretching down to 180m vertical depth – this Fostervillestyle discovery languished out of sight until Southern Cross came along and started applying modern techniques.

And while the company is currently working its way towards defining a maiden resource for Sunday Creek, the potential company-maker is by no means the company’s sole project.

Southern Cross has two other highgrade, epizonal exploration projects within the Melbourne Zone of central Victoria that, like its flagship, host plenty of exploration potential under historical workings that had previously produced tens of thousands of ounces of gold during Victoria’s gold rush.

Redcastle, which is held in a 70:30 joint venture with Nagambie Resources, is interpreted to be the northerly extension of Mandalay Resource’s 2Moz Costerfield mine, the world’s seventh highest grade gold mine and the fifth largest producer of antimony.

Southern Cross has drilled 15 holes to date at Redcastle and intersected gold in every single one of them, which promises all kinds of excitement when one takes into consideration the project has over 17km of untested mineralised veins which are ready for testing.

Looking further north is the Whroo project, which the company is currently earning up to 70% from Nagambie.

Whroo hosts a 14km mineralised trend stretching east to west that under historical workings and its exploration potential is best demonstrated by the intersection of a 0.6m zone grading 49.7g/t gold with the first of two holes drilled by the company under the old Balaclava open pit mine – the best result in the field since mining commenced 160 years ago.

The company also holds a 10% stake in Nagambie, giving it first right of refusal on over 3,000km2 of ground in central Victoria, and also potential access to a CIL processing plant that Nagambie is building with Golden Camel at the old mine site.

As a sign of its high-grade exploration success, other Victorian gold explorers are now comparing their grades and proximity to Southern Cross as well as to the producing Fosterville and Costerfield mines.

KEY INVESTMENT HIGHLIGHTS

JULY 6, 2022: Drilling strikes wide zones of mineralisation with high-grade structures along strike extensions of the Apollo Shoot of the Sunday Creek project. MAY 30, 2022: Southern Cross intersects wide 119.2m intersection at 3.9g/t gold equivalent, increasing the continuity of Sunday Creek mineralisation to a depth of 335m. MAY 23, 2022: Multiple high-grade intersections within broader gold-antimony hits lend further weight to the company’s belief that Sunday Creek is one the better recent discoveries in Victoria.