Southern Cross Gold Welcomes Both A$20 Million Antimony Processing Election Commitment and Decision on Advancing Antimony Grant

SXGC secures A$750,000 grant for antimony studies; A$20 million facility remains conditional.

What the company is saying

Southern Cross Gold Consolidated Ltd (TSX:SXGC, ASX:SX2, OTCQX:SXGCF, FSE:MV3) is highlighting its selection as a preferred recipient, alongside Gekko Systems, for over A$750,000 in Advancing Antimony Grants from the Victorian Government to fund studies into antimony processing and supply chains. The company frames Sunday Creek as a high-grade gold-antimony discovery, with antimony contributing 15% to 17% of the project's in situ recoverable value. Management, led by President and CEO Michael Hudson, positions the grant as a key enabler for pilot-scale test work on Sunday Creek concentrate, including metallurgical recoveries, product quality, and environmental permitting. The announcement emphasizes the strategic importance of antimony as a critical mineral, Australia's reliance on overseas processing, and SXGC's potential role as a Western supplier, especially given China's 56% share of global mined supply. The company also spotlights a conditional A$20 million election commitment by the Carroll Labor Government for a new antimony processing facility in Victoria, but clearly states this is contingent on a November 28, 2026 state election outcome and future funding terms. The tone is confident and forward-looking, with repeated references to government support, project milestones, and the broader critical minerals policy context.

What the data suggests

The only confirmed funding is the more than A$750,000 Advancing Antimony Grant, which will be shared between SXGC and Gekko Systems for studies and pilot-scale test work on antimony processing. The A$20 million facility funding is not secured; it is an election pledge conditional on the Victorian Labor Party winning the November 28, 2026 election and subsequent funding arrangements. The proposed facility is designed for up to 5,000 tonnes of annual antimony metal production, supporting 200 construction and 60 ongoing skilled jobs, but these are projections, not commitments. SXGC holds 16,900 hectares of exploration tenements and 2,296 hectares of freehold land at Sunday Creek, with a mining licence application (MIN009040) submitted in September 2026. Sunday Creek has produced 106 composite intersections exceeding 100 g/t Au from 146.4 km of drilling, with mineralization tested to 1,200 m depth and interpreted over 12 km of strike. Preliminary metallurgical work shows gold recoveries of 93% to 98% and non-refractory mineralization suitable for conventional processing. The company plans a 200 km drill program through Q1 2027. No revenue, cash balance, or period-over-period financials are disclosed. The grant funding is a tangible step, but the major facility and its benefits are long-dated and uncertain.

Analysis

The announcement adopts a positive tone, highlighting both a conditional A$20 million government commitment for an antimony processing facility and the confirmed award of over A$750,000 in grant funding for studies. While the grant funding is a realised fact, the major facility funding is entirely forward-looking and contingent on a future election outcome and subsequent funding arrangements. Key operational data—such as drilling results, land holdings, and preliminary metallurgical recoveries—are disclosed and credible, but the most significant project benefits (facility construction, job creation, antimony production) are long-dated and not yet committed. The narrative inflates the signal by emphasizing the scale and strategic importance of the proposed facility and SXGC's positioning as a future Western antimony supplier, despite the absence of binding funding or construction milestones. The capital intensity is high, with large outlays and only long-term, uncertain returns. The gap between narrative and evidence is most pronounced in the discussion of the facility's impact, which is not yet assured.

Risk flags

• ●The A$20 million antimony processing facility is not yet funded or approved; it is a conditional election commitment dependent on the Victorian Labor Party winning the November 28, 2026 state election and on subsequent funding terms. This introduces significant political and execution risk, as the facility and its associated jobs and production capacity may not materialize.
• ●The technical and economic viability of producing antimony metal from Sunday Creek concentrate remains unproven at commercial scale. The Advancing Antimony Grant funds only pilot-scale test work and studies, and there is no guarantee that these will demonstrate sufficient recoveries, product quality, or environmental compliance to justify full-scale development.
• ●SXGC's future positioning as a Western antimony supplier is highly dependent on successful downstream processing infrastructure, which is not yet built or financed. The company faces supply chain, permitting, and market risks, especially given global reliance on China for antimony and the lack of existing Australian processing capacity.
• ●No current revenue, cash balance, or detailed financials are disclosed, making it difficult to assess the company's ability to fund ongoing exploration and development activities beyond the grant. The planned 200 km drill program and other milestones will require sustained capital.

Bottom line

SXGC has secured over A$750,000 in government grant funding to advance technical studies and pilot-scale test work on antimony processing at Sunday Creek, providing a concrete near-term catalyst. The much larger A$20 million facility, which would be Australia's first antimony processing plant, is only an election promise and remains highly uncertain pending the November 2026 Victorian state election and subsequent funding arrangements. While Sunday Creek shows high-grade gold-antimony mineralization and strong preliminary metallurgical recoveries, the commercial pathway for antimony production depends on successful test work, government follow-through, and the development of new processing infrastructure. Investors should focus on the outcomes of the grant-funded studies, the mining licence application progress, and the company's ability to secure additional funding for its planned 200 km drill program. The most important takeaway is that while SXGC is advancing its technical case and government engagement, the transformative upside from domestic antimony processing is not yet secured and remains a long-term, high-risk proposition.

Announcement summary

(TSX:SXGC) (ASX:SX2) (OTCQX:SXGCF) (FSE:MV3) Southern Cross Gold Consolidated Ltd announced that a re-elected Carroll Labor Government has committed A$20 million towards establishing Australia's first antimony processing facility in northern Victoria, which is designed to produce up to 5,000 tonnes of antimony metal per year and be open to Australian producers. The facility is expected to support around 200 construction jobs and 60 ongoing skilled jobs. SXGC and Gekko Systems have been named preferred recipients under the Victorian Government's Advancing Antimony Grants program, sharing more than A$750,000 in funding to support studies into antimony processing options and supply chains. The Sunday Creek Gold-Antimony Project, located 60 km north of Melbourne within 16,900 hectares of granted exploration tenements, is highlighted as a key Victorian antimony discovery. SXGC is the freehold landholder of 2,296 hectares forming the main drilled area at Sunday Creek. The company applied for its first mining licence, MIN009040, in September 2026. Antimony represents approximately 15% to 17% of the in situ recoverable value of Sunday Creek, based on an AuEq ratio of 2.39. Preliminary metallurgical work at Sunday Creek has shown gold recoveries of 93% to 98% through gravity and flotation, with non-refractory mineralization suitable for conventional processing. The Advancing Antimony grant will fund pilot-scale metallisation test work on Sunday Creek concentrate, including confirmation of antimony and gold recoveries, product quality testing, and process residue characterization for environmental permitting, as well as updated flowsheet and balance-of-plant engineering. The company has a strong cash position, 2,296 hectares of strategic freehold land, and a 200 km drill program planned through Q1 2027. Sunday Creek has yielded 106 composite intersections exceeding 100 g/t Au from 146.4 km of drilling, with mineralization following a "Golden Ladder" structure over 12 km of interpreted strike length and tested to 1,200 m depth. China controls 56% of global mined antimony supply, and Australia ranks seventh globally for antimony production, all from the Costerfield mine near SXGC's projects. The company is included in the US Defense Industrial Base Consortium and is positioned as a potential key Western antimony supplier. The A$20 million commitment is conditional on the Victorian Labor Party's re-election at the state election on 28 November 2026 and on the terms of any future funding arrangements. SXGC will continue to engage with government on the development of antimony processing in Victoria.

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