Southern Cross Gold Updates Exploration Target at Sunday Creek Gold-Antimony Project, Victoria, Australia

Southern Cross Gold expands Sunday Creek target, but value remains years from realization.

Risk flags

• ●There is no Mineral Resource Estimate, meaning the tonnage and grade figures are conceptual and not yet validated for economic extraction. Without resource conversion, the project cannot advance to feasibility or development stages.
• ●The timeline to value is extended, with at least three years of drilling before a potential resource estimate and no stated path to production or cash flow. This exposes investors to prolonged funding risk and market volatility.
• ●No financial data is disclosed—there are no figures for cash position, exploration spend, or capital requirements. The scale of planned drilling and decline construction implies high capital intensity, but the absence of financial transparency increases uncertainty.
• ●Key claims about expansion potential and open extensions at depth are not supported by specific drill results or quantitative evidence, introducing geological risk and the possibility that future drilling may not deliver expected scale or grade.

Bottom line

This announcement confirms Southern Cross Gold's technical progress at Sunday Creek, with a large and high-grade exploration target and strong metallurgical recoveries. The scale of drilling and land position are positives, but the absence of a Mineral Resource Estimate, production plan, or financial metrics means the investment case is still speculative. All value is years away, with at least three more years of drilling before resource conversion is possible. The narrative is optimistic but relies on forward-looking statements rather than realized milestones. For investors, this is a technical exploration story with no immediate path to cash flow or development, and the most important takeaway is that economic viability remains unproven. Only the delivery of a compliant resource estimate or binding commercial agreements would materially change this assessment.

Announcement summary

(TSX: SXGC) (ASX: SX2) (OTCQX: SXGCF) Southern Cross Gold Consolidated Ltd announced an updated Exploration Target for its 100%-owned Sunday Creek Gold-Antimony Project in Victoria, Australia, estimating 10.4 – 11.9 million tonnes grading from 8.9 g/t AuEq to 12.1 g/t AuEq, for 3.0 Moz AuEq to 4.6 Moz AuEq. The Exploration Target is based on 125 vein set shapes constrained to diamond drilling data across five prospects—Christina, Golden Dyke, Rising Sun, Apollo, and Apollo East—along 1,500 m of strike. Nine rigs are currently operating on site, with two more testing regional targets up to 8 km away, and a total of 130.6 km of drilling has been reported, with 35 km of core awaiting results and another 135 km expected to be completed through Q1 2027. Stage 2 metallurgical test work reported in August 2025 on 144 samples demonstrated overall gold recovery of 92.3% to 95.6% and antimony recovery of 83.2% to 92.7%. The company owns 1,392 hectares of freehold land enclosing the crown land and is fully permitted under an existing work plan to construct a 1.2 km exploration decline that remains under construction. The Exploration Target has been completed in accordance with National Instrument 43-101 and the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012 Edition (JORC). The company projects to complete another 135 km of drilling through to Q1 2027 and is aiming to uncover the potential extent of the mineralized system with ongoing step-out drilling.

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