Southern Cross Gold (TSX:SXGC,ASX:SXG,OTCQX:SXGCF) has received work plan approval for an exploration tunnel at its Sunday Creek gold-antimony project in Victoria, Australia.
The company said in a November 27 announcement that the exploration tunnel will provide underground access to high-grade mineralization at Sunday Creek.
Southern Cross will then be able to perform detailed geological mapping and sampling of mineralized structures, and execute precision underground drilling to expand and define the resource along strike and at depth.
It will also be able to collect geotechnical data essential for future mine design, and assess various mining methods and equipment selection for potential future operations.
“This approval is a pivotal milestone in Sunday Creek’s evolution from exploration discovery to future potential mine development,” said Southern Cross President and CEO Michael Hudson, adding that underground access builds on Sunday Creek’s other key attributes, including strategic freehold land ownership and proven metallurgy.
Hudson also noted that there are currently 10 operational surface drill rigs at the site, with the company planning to add an additional 12 drill rigs underground after the decline is complete for 22 rigs in total.
That will give Sunday Creek the largest pre-development drill program in Australia.
The Minerals Council of Australia said the exploration tunnel approval is a major step forward in Victoria’s status as the sole Australian source of antimony. Interest in antimony is on the rise as the critical mineral has immense strategic importance for defense, as well as for solar panels, batteries, semiconductors and flame retardants.
“The approval of the exploration tunnel at Sunday Creek, along with October’s approval of the Catalyst Metals (ASX:CYL,OTC Pink:CTYMF)/Hancock Prospecting joint venture Boyd’s Dam gold project, sends a clear message that Victoria is open for business in advanced minerals exploration approvals for deeper mineral deposits,” wrote James Sorahan, the Minerals Council of Australia’s executive director for Victoria.
“To support Victoria’s emerging critical minerals and existing gold sectors, exploration spending needs to increase after a recent decline from record high levels,” he added.
Southern Cross said that site establishment activities are scheduled to commence within the next month.
The company is also progressing secondary approvals under the Water Act and Environment Protection Act, as well as other relevant agencies, before underground work commences.
Underground construction is projected to take six to nine months.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
