Southern Cross Gold – SXG-ASX – Today’s Q&A with Michael Hudson Managing Director
Michael is a professional geologist, explorationist and entrepreneur with over 30 years of experience in exploration, project development and management. He commenced his career underground in Broken Hill in 1990 and has managed and developed exploration to pre-feasibility projects on four continents for major and junior mining companies.
Spencer Campbell SE Asia Consulting…
He has co-founded eight public companies over the last 15 years and currently sits on the board of four companies across four different stock exchanges and has raised +US$200m for exploration projects. He is motivated by discovery and is enjoying working at Sunday Creek, within a few kilometres of his one-room country primary school after decades offshore.
Southern Cross Gold (ASX:SXG)
Southern Cross Gold (ASX:SXG) is an Australian natural resources company primarily engaged in the exploration of precious and critical metals.
Southern Cross Gold operates four exploration projects: Sunday Creek, Redcastle, Whroo, and Mt Isa. These projects are located in renowned gold-producing regions, including Bendigo, Ballarat, Castlemaine, Stawell, and Woods Point.
Southern Cross Gold Question Time….
- Can you share some insights into Southern Cross Gold’s journey from its inception to its current status as a natural resources exploration company?
In early 2020 just before the pandemic hit, I was running TSX listed Mawson Gold (which has its flagship Au-Co project, Rajapalot, in northern Finland) and we completed a deal with ASX listed Nagambie Resources to buy the Sunday Creek project 100%, JV the Redcastle and Whroo projects further to the north and buy 10% of Nagambie which then gave us a Right of First Refusal over 3,300km2 of Nagambie tenements in central north Victoria.
The idea was to spin out the Victorian assets at a point in time when it was sensible to do so and by mid-2021 after successful drilling on all three properties, but primarily at Sunday Creek, it was clear it was time to do so.
Victorian gold production and exploration has a very large Canadian presence (the two major gold producers in the state are the Fosterville mine operated by Agnico Eagle and Costerfield operated by Mandalay Resources which are both TSX listed) and so we decided to call the spin out Southern Cross Gold to fly the flag about Australian assets were about to hit the Australian market for Australian shareholders to invest in. And so in May 2022 we listed the company on the ASX at A$0.20 and haven’t looked back.
- What sets Southern Cross Gold apart from other companies in the exploration of precious and base minerals, particularly in Victoria?
Grade and scale, with significant cash and permits to drill with ferocity.
We have the benefit of the economic understanding around the Fosterville and Costefield mines that guide our strategy on the style of mineralisation and how it transitions to very high grades at depth. Our drill results and hits rates speak for themselves. Big systems have big footprints and our 11km mineralised trend lies within only three landholdings which allows simplicity of access and drilling. One of these landholdings includes the 320 acres of freehold land we own. We also have a great relationship with the local traditional landowners.
- Could you provide some details about the Sunday Creek gold project and its significance for Southern Cross Gold’s portfolio?
Our 11km mineralised trend from southwest to northeast has had continuous historic mining all along it strike providing a view on the continuity of gold. Most of the old workings produced at around 30g/t gold.
Mining in the area stopped due WWI and after that the focus of gold exploration and production shifted to the emptiness of WA so Victoria, which is a truly world class gold mining region was forgotten about. Therefore, there was a lot of gold left in our area. Then in modern times due to the project being tied up in private hands for the most part, only 5,000m of shallow drilling, primarily to test the oxides near surface had occurred on the property before Mawson arrived in 2020.
Sunday Creek offers the opportunity for a substantial and high grade project from the southwestern corner of the mineralised trend with plenty of upside from the 10km to the northeast that has had no modern drilling at all except from the first eleven scout drill holes SXG has drilled in the last month or so.
- How has Southern Cross Gold been able to achieve a globally leading high-grade hit rate at this stage of the Sunday Creek project’s development?
We have been able to stand on the shoulders of giants with the understanding that has come from the Fosterville and Costerfield mines with the transition from Au/Sb in the upper levels to the high grade Au at depth. And great systems are forgiving to geologists!
- What are some of the notable accomplishments and milestones that Southern Cross Gold has achieved in terms of gold and antimony exploration in the Victorian Goldfields?
The project has consistently delivered wide intercepts from surface that define continuous zones with predictable high-grade components. Most excitingly, we have produced high grade intercepts at Sunday Creek which lead any drill program globally for the stage of exploration that we have completed.
We have four drill rigs turning at the moment and so far there have been 125 drill holes for 25,084 m completed at the property. In total, 29 individual intersections exceed 50 AuEq g/t * m (“AuEq g/t x width in m”) and 14 individual intersections exceed 100 AuEq g/t * m. We already have 24 >100 cumulative AuEq g/t * m which consistently rank amongst the ten best intersections reported by an ASX company anywhere in the world in the week they were released.
- Could you elaborate on the corporate objectives of Southern Cross Gold, particularly in terms of discovering and developing large, sustainable assets that create value for shareholders and stakeholders?
SXG aims to produce a top quartile global discovery in terms of contained ounces and grade. This will come by SXG staying on the discovery side of the Lassonde curve. That looks very possible as the project is hosted in a highly prospective setting with multiple avenues to unlock potential.
With the permits and cash in place, and multiple drill rigs spinning, we are able to give that strategy our best shot. It is important to note that success will only come with SXG being able to maintain its impeccable social relationships with local people, indigenous groups and the broader community.
The addition of a potential antimony by-product also helps as potentially makes the project one of the few options for the western world to regain a supply chain in this critical commodity.
- What strategies or approaches does Southern Cross Gold employ to ensure the long-term sustainability of its exploration operations and minimize its environmental impact?
SXG is currently undertaking a gap analysis for the implementation of the Towards Sustainable Mining Initiative. Towards Sustainable Mining (TSM), a globally recognised accountability framework which supports minerals companies to evaluate, manage and communicate their sustainability performance.
We approach this on many levels such as using low impact small footprint drill rigs, sound proofing around the rigs, utilise pre-existing tracks and using reused plastics for core trays that have kept out over five tonnes of plastic from landfill. We are also looking at installing a solar renewable energy facility on our freehold land.
- How does Southern Cross Gold leverage its regional history and the proud gold production heritage of Victoria to enhance its exploration and mining activities?
We believe we are continuing a proud history of gold exploration and mining in the state of Victoria. The state is now producing more gold that it has for 100 years and we look forward to supplying into that trend in the years to come.
SXG are proud to display historic photos of the workings on the property from the 19th century on our website and our company name and logo acknowledge the Southern Cross star constellation that located our location in the world but is also the link to the “Eureka Flag” that represented the Southern Cross and was the symbol of a rebellion in the Ballarat goldfields in 1857(!!).
The pick axe in the main star of our logo is also a tribute to the miners on the site from the 19th century.
- What measures does Southern Cross Gold take to ensure respectful engagement with the Traditional Owners of the land, such as the Taungurung people, and to incorporate Indigenous perspectives into its operations?
SXG recognises the Taungurung are important stakeholders in our operations
At our initial company strategy workshop, we held a concurrent cultural relations workshop with all the Board and all staff. Representatives from the Taungurung explained to us their history, culture and ties to the land as well as performing a welcome to country smoking ceremony on the Sunday Creek property to initiate the start of SXG as a company.
We engage them to do archaeological surveys before creating a drill pad and to do rehabilitation after the drill rig and sundry equipment have left the pad.
We have worked with them to translate their ‘Welcome to Country’ into the Taungurung language with we display on our website and which they can use throughout their activities
and we are working with them on a childrens’ book.
- In terms of community relations, what initiatives does Southern Cross Gold undertake to establish positive relationships with local communities and address their concerns?
SXG employs local and buys local. We have been active members of our community from the very beginning as we see every interaction as being an opportunity to educate them about our activities and exploration generally as we see transparency and availability for dialogue as key attributes to being a trusted member of the community.
We have established a Clonbinane Community Reference Group (CCRG) This is a joint SXG and Clonbinane Community Action Group (CCAG) initiative. The CCRG seeks to formally engage the community that resides around the Sunday Creek Project to enhance and strengthen relationships with key stakeholders and help facilitate information sharing to improve the project’s outcomes.
We have had booths at the local agricultural shows, been a foundation member of the local emergency response committee, held town hall meetings to provide an open forum of discussion, helped with flood relief and clean up, partnered with local support service providers to create pathways for people with a disability.
- Looking to the future, what are Southern Cross Gold’s plans for further exploration, development, and expansion, and how does the company envision its role in the natural resources industry?
Drill, Drill, Drill…!!
We are approaching the halfway point of a 30,000m drill program for calendar year 2023 with the express aim to increase the size of the known mineralisation at Sunday Creek, to understand how the mineralisation ‘hangs together’ and to work on creating a positive pathway for permitting future workloads and licenses at the property to create a valuable asset and shareholder wealth.
We see ourselves as a company that, through our way of doing business and interactions with all stakeholders, can demonstrate how to be a leader in the industry through use of technology, social and community participation and being an employer, who people want to work with.
How do people connect with Southern Cross Gold online?
Address & Telephone
459 Collins Street,
Melbourne, Vic 3000 Australia
Justin Mouchacca – Corporate Secretary
p: +61 3 8630 3321
p: +61 415 153 122
p: 1800 717 638 or (03) 4310 2692