Southern Cross Gold Consolidated Ltd. press release

Southern Cross Gold Drills 3.4 M @ 466 g/t Gold at Sunday Creek

2025-05-28

TSX - Toronto Stock Exchange · Australia

Vancouver, British Columbia and Melbourne, Australia--(Newsfile Corp. - May 28, 2025) - Southern Cross Gold Consolidated Ltd(TSXV: SXGC) (ASX: SX2) (OTC Pink: MWSNF) (FSE: MV3) ("SXGC", "SX2" or the "Company") announces results from eight diamond drill holes from the Rising Sun and Golden Dyke and Christina prospects, at the 100%-owned Sunday Creek gold-antimony project in Victoria (Figure 7).

Five Key Points

SDDSC161, drilled to infill mineralization with a 27 m up-dip extension at Rising Sun, hosts thesecond-best interval on the project and two of the ten best intervals drilled:

Second best interval: 3.4 m @ 466.4 g/t Au(1,585.8 AuEq g/t x m) including 2.4 m @ 670.4 g/t Au.

Third highest individual assay: 4,700 g/t Au over 0.2 m from 511.3 m.

Ninth highest individual assay: 1,510 g/t Au over 0.3 m from 510.4 m.

Six new vein sets discoveredbetween Christina and Golden Dyke in SDDSC156, highlighting repeatability of mineralized structures.

Depth Extensions: Two of the reported holes (SDDSC155A and SDDSC157) intercepted high-grade mineralization 40 m to 120 mbelow previously announced mineralization.

Sunday Creek's High-Grade Profile Expands: One additional +100 gram-metre AuEq intercept and two additional 50 to 100 gram-metre AuEq intercepts bringing the project's total to 64 and 72, respectively, further demonstrating robust grade distribution at depth.

Continued Exploration: Twenty-four additional holes are currently being processed and analyzed, with eight more actively being drilled, continuing the systematic expansion of the project's mineralized footprint.

Michael Hudson, President & CEO, states:_"These latest drill results continue to demonstrate the exceptional potential of our Sunday Creek discovery. SDDSC161 has delivered our second highest interval ever drilled, with 3.4 m @ 466.4 g/t AuEqincluding an ultra-high-grade core of 2.4 m @ 670.4 g/t AuEq. The presence of 4,700 g/t Au over 0.2 m- our third highest individual assay - shows the remarkable grade potential within our Golden Ladder system._

Our drilling program is strategically designed to both expand the project volume and de-risk known high-grade zones through continuity confirmation. SDDSC156 dramatically increases the project's mineralized volumeby discovering six entirely new vein sets, while results like SDDSC161, SDDSC155A's 40 m to 50 m down dip extensionsand SDDSC157's 120 m down dip extension demonstrate remarkable continuity of our high-grade mineralization. These results consistently confirm that our very high grades maintain their character both along strike and down dip, significantly reducing geological risk while expanding the scale of this impressive system."

[](https://images.newsfilecorp.com/files/11541/253615_a98ac25694a5398b_001full.jpg)

Figure 1: SDDSC161 intercept: _0.2 m @ 4,700 g/t Au and 0.26% Sb_from 511.3 m showing abundant visible gold in a quartz-carbonate-stibnite vein. Part of a wider zone grading 3.4 m @ 466.4 g/t AuEq (466.0 g/t Au, 0.2% Sb) from 508.4 m. Core diameter is 63.5 mm.

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/11541/253615_a98ac25694a5398b_001full.jpg

FOR THOSE WHO LIKE THE DETAILS

Key Take Aways

SDDSC161 (Rising Sun)was drilled east-to-west targeting the highly prospective RS01 vein set with a 27 m up-dip extension and delivered the second highest composite interval in Sunday Creek's history:

3.4 m @ 466.4 g/t AuEq(466.0 g/t Au, 0.2% Sb) from 508.4 m, including:

2.4 m @ 671.0 g/t AuEq(670.4 g/t Au, 0.2% Sb) from 509.5 m

Featured two exceptional +1,000 g/t gold assays in a single interval:

4,700 g/t Auover 0.2 m (3rd highest assay on the project)

1,510 g/t Auover 0.3 m (9th highest assay on the project)

Continued over page…

Key Take Aways continued….

SDDSC156 (Christina-Golden Dyke)was drilled from Christina toward Golden Dyke and intersected a 125 m mineralized zone containing seven vein sets. Six represent entirely new discoveries, with the standout intercept:

3.0 m @ 13.7 g/t AuEq(7.3 g/t Au, 2.7% Sb) from 267.8 m, including:

1.6 m @ 24.0 g/t AuEq(13.0 g/t Au, 4.6% Sb) from 267.8 m

SDDSC155A (Rising Sun)provided critical depth extensions, delivering 40 m to 50 m down dip continuityon two vein domains (RS05, RS15) while providing high-grade infill on a third (RS06), highlighted by:

0.1 m @ 370.7 g/t AuEq(370.0 g/t Au, 0.3% Sb) from 682.5 m

SDDSC157 (Golden Dyke)successfully extended three vein domains (GD80, GD90, GD100) by 40 m to 120 m down dip, with the standout intercept:

0.4 m @ 162.6 g/t AuEq(161.9 g/t Au, 0.3% Sb) from 647.0 m

SDDSC152 (Rising Sun Control)was designed as a structural control hole drilled at high angles to test dyke location. It successfully intersected 25 m of dyke and altered sedimentat 940 m vertical depth, representing a 130-170 m step-out below existing mineralization.

Growing Project Scale: With 173 drill holes totalling 82,619 m completed since late 2020, Sunday Creek now contains 64 intersections >100 g/t AuEq x mand 72 intersections between 50-100 g/t AuEq x m, establishing it as one of the world's premier gold-antimony discoveries.

Drill hole Discussion

Results from eight diamond drill holes SDDSC152, SDDSC154, SDDSC155, SDDSC155A, SDDSC156, SDDSC157, SDDSC157A and SDDSC161 from the Rising Sun and Golden Dyke and Christina prospects, are presented below.

Rising Sun Area

SDDSC161delivered exceptional results with the second highest interval ever drilled at Sunday Creek, intercepting 3.4 m @ 466.4 g/t AuEqfrom 508.4 m, including a higher-grade core of 2.4 m @ 671.0 g/t AuEqfrom 509.5 m, plus the third highest individual assay of 4,700 g/t Au over 0.2 m (Figures 2, 3, 4 and 7). SDDSC161 was drilled 27 m up dip from SDDSC082 (October 23, 2023- 1.7 m @ 254.2 g/t AuEq and 1.6 m @ 500.3 g/t AuEq) and 11 m along strike from SDDSC110 (15 April, 2024- 0.7 m @ 11.7 g/t AuEq).

Extended highlights include:

0.4 m @ 15.3 g/t AuEq(11.9 g/t Au, 1.4% Sb) from 473.7 m

7.8 m @ 7.0 g/t AuEq(2.2 g/t Au, 2.0% Sb) from 478.6 m, including:

2.3 m @ 13.0 g/t AuEq(4.7 g/t Au, 3.5% Sb) from 479.7 m

0.6 m @ 18.6 g/t AuEq(1.2 g/t Au, 7.3% Sb) from 483.7 m

0.4 m @ 18.3 g/t AuEq(6.1 g/t Au, 5.1% Sb) from 486.0 m

3.4 m @ 466.4 g/t AuEq(466.0 g/t Au, 0.2% Sb) from 508.4 m, including:

2.4 m @ 671.0 g/t AuEq(670.4 g/t Au, 0.2% Sb) from 509.5 m

This lower interval also included two of the top ten individual assays ever intercepted at Sunday Creek:

4,700 g/t Auover 0.2 m from 511.3 m (3rdhighest on the project)

1,510 g/t Auover 0.3 m from 510.4 m (9thhighest on the project)

SDDSC155Aprovided significant value by extending two mineralized vein sets 40 m to 50 m down dip and delivering high-grade infill on a third vein set that showed impressive thickening up to 7 m true width, highlighted by a high-grade intercept of 0.1 m @ 370.7 g/t AuEq from 682.5 m. Highlights include:

0.3 m @ 56.1 g/t AuEq(40.3 g/t Au, 6.6% Sb) from 602.3 m, including:

0.2 m @ 92.3 g/t AuEq(66.0 g/t Au, 11.0% Sb) from 602.3 m

1.5 m @ 3.2 g/t AuEq(2.6 g/t Au, 0.3% Sb) from 620.3 m

2.0 m @ 3.2 g/t AuEq(3.0 g/t Au, 0.1% Sb) from 651.6 m, including:

0.6 m @ 8.5 g/t AuEq(8.0 g/t Au, 0.3% Sb) from 653.0 m

1.7 m @ 1.5 g/t AuEq(1.4 g/t Au, 0.0% Sb) from 666.0 m

2.0 m @ 1.7 g/t AuEq (1.6 g/t Au, 0.0% Sb) from 670.6 m

4.5 m @ 6.6 g/t AuEq(5.7 g/t Au, 0.4% Sb) from 674.9 m, including:

2.1 m @ 11.0 g/t AuEq(9.4 g/t Au, 0.7% Sb) from 674.9 m

0.6 m @ 9.1 g/t AuEq(8.2 g/t Au, 0.4% Sb) from 678.7 m

0.1 m @ 370.7 g/t AuEq(370.0 g/t Au, 0.3% Sb) from 682.5 m

4.0 m @ 1.0 g/t AuEq(0.8 g/t Au, 0.1% Sb) from 695.8 m

5.1 m @ 1.6 g/t AuEq(1.3 g/t Au, 0.1% Sb) from 752.8 m

SDDSC155was abandoned at 29.3 m depth after re-entering previously drilled hole SDDSC122 and becoming unrecoverable.

SDDSC152served as an important south-north control hole that successfully intersected the dyke breccia altered host 130 m to 170 m below existing drilling and intercepted mineralization on both the hanging wall and footwall of the dyke, with intervals of 0.5 m @ 1.11 g/t Au from 1047.2 metres and 0.2 m @ 4.76 g/t Au from 986.7 m indicating the mineralized system continues to at least 0.97 km depth on the western margins of Rising Sun as already drill tested on the eastern side of Rising Sun.

Golden Dyke - Christina Area

SDDSC156 achieved outstanding results by intersecting a 125 m wide mineralized zone and discovering seven vein sets, six of which were entirely new discoveries. This drill hole demonstrates the consistent repeatability of mineralized vein sets and highlights how east-west oriented drill holes can successfully identify new structures when following up on earlier north-south control holes.

Extended highlights include:

0.1 m @ 21.2 g/t AuEq(1.2 g/t Au, 8.4% Sb) from 239.2 m

0.9 m @ 2.6 g/t AuEq (1.9 g/t Au, 0.3% Sb) from 244.0 m

0.9 m @ 5.6 g/t AuEq(2.6 g/t Au, 1.3% Sb) from 248.0 m

0.2 m @ 41.4 g/t AuEq(30.9 g/t Au, 4.4% Sb) from 253.1 m

4.6 m @ 1.5 g/t AuEq(1.0 g/t Au, 0.2% Sb) from 260.8 m

3.0 m @ 13.7 g/t AuEq(7.3 g/t Au, 2.7% Sb) from 267.8 m, including:

1.6 m @ 24.0 g/t AuEq(13.0 g/t Au, 4.6% Sb) from 267.8 m

0.2 m @ 17.2 g/t AuEq(1.8 g/t Au, 6.5% Sb) from 286.9 m

3.4 m @ 4.9 g/t AuEq(4.1 g/t Au, 0.3% Sb) from 289.7 m, including:

0.6 m @ 12.8 g/t AuEq (12.6 g/t Au, 0.1% Sb) from 292.5 m

0.7 m @ 3.2 g/t AuEq(0.9 g/t Au, 1.0% Sb) from 297.4 m

3.8 m @ 2.0 g/t AuEq(0.7 g/t Au, 0.5% Sb) from 309.8 m, including:

0.8 m @ 7.2 g/t AuEq(2.0 g/t Au, 2.2% Sb) from 309.8 m

5.1 m @ 0.9 g/t AuEq(0.5 g/t Au, 0.2% Sb) from 316.5 m

3.3 m @ 1.4 g/t AuEq(0.7 g/t Au, 0.3% Sb) from 330.5 m

0.7 m @ 9.9 g/t AuEq(9.1 g/t Au, 0.4% Sb) from 356.0 m

2.0 m @ 3.7 g/t AuEq(2.5 g/t Au, 0.5% Sb) from 359.1 m

2.7 m @ 2.6 g/t AuEq(0.6 g/t Au, 0.8% Sb) from 371.8 m

SDDSC154, drilled from the same collar location as SDDSC156, had limited success as it exited the mineralized system earlier than anticipated (drilled outside the "rails of the ladder"), intercepting only minor mineralization of 0.9 m @ 2.7 g/t AuEq from 287.2 m in a parallel dyke structure within the hanging wall, though it provided valuable structural information for future. Highlights include:

0.9 m @ 2.7 g/t AuEq(2.7 g/t Au, 0.0% Sb) from 287.2 m

Golden Dyke Area

SDDSC157delivered a strong result, successfully extending known mineralization with 40 m to 45 m down dip extensions on the GD90 and GD100 vein sets and importantly achieving a 120 m down dip extension on the GD80 vein set. Extended highlights include:

1.4 m @ 4.9 g/t AuEq(4.6 g/t Au, 0.1% Sb) from 19.0 m

2.3 m @ 2.1 g/t AuEq(2.1 g/t Au, 0.0% Sb) from 24.2 m

2.9 m @ 1.3 g/t AuEq(1.2 g/t Au, 0.0% Sb) from 621.4 m

0.4 m @ 162.6 g/t AuEq(161.9 g/t Au, 0.3% Sb) from 647.0 m, including:

0.2 m @ 262.7 g/t AuEq(262.0 g/t Au, 0.3% Sb) from 647.0 m

0.4 m @ 5.3 g/t AuEq(5.3 g/t Au, 0.0% Sb) from 666.2 m

0.3 m @ 53.8 g/t AuEq(39.9 g/t Au, 5.8% Sb) from 693.2 m, including:

0.2 m @ 75.4 g/t AuEq(56.2 g/t Au, 8.0% Sb) from 693.2 m

0.3 m @ 41.8 g/t AuEq(41.8 g/t Au, 0.0% Sb) from 703.8 m

2.8 m @ 1.4 g/t AuEq(1.4 g/t Au, 0.0% Sb) from 908.1 m

Pending Results and Update

The drilling program continues to advance with twenty-four holes (SDDSC159, 160, 160W1, 160W2, 162-172, 163A, 168W1, 169A, 169AW1, SDDGT001-005) currently being processed and analysed. Eight additional holes (SDDSC170A, 173-179) are actively being drilled.

The drilling strategy employs a systematic approach to intersect both the dyke host structure ("ladder rails") and associated mineralized vein sets ("ladder rungs") at optimal angles, continuing to expand the project's mineralized footprint while improving geological understanding of the system.

About Sunday Creek

The Sunday Creek epizonal-style gold project is located 60 km north of Melbourne within 16,900 hectares ("Ha") of granted exploration tenements. SXGC is also the freehold landholder of 1,054.51 Ha that forms the key portion in and around the main drilled area at the Sunday Creek Project.

Cumulatively, 173 drill holes for 82,619.0 m have been reported from Sunday Creek since late 2020. 5 holes for 929 m have been drilled for geotechnical purposes. An additional 14 holes for 832.0 m from Sunday Creek were abandoned due to deviation or hole conditions. 14 drillholes for 2,383 m have been reported regionally outside of the main Sunday Creek drill area. A total of 64 historic drill holes for 5,599 m were completed from the late 1960s to 2008. The project now contains a total of sixty-four (64) >100 g/t AuEq x m and seventy-two (72) >50 to 100 g/t AuEq x m drill holesby applying a 2 m @ 1 g/t AuEq lower cut.

Our systematic drill program is strategically targeting these significant vein formations. Initially these have been defined over 1,500 m strike of the host from Christina to Apollo prospects, of which approximately 620 m have been more intensively drill tested (Rising Sun to Apollo). At least 74 'rungs' have been defined to date, defined by high-grade intercepts (20 g/t to >7,330 g/t Au) along with lower grade edges. Ongoing step-out drilling is aiming to uncover the potential extent of this mineralized system (Figure 5).

Geologically, the project is located within the Melbourne Structural Zone in the Lachlan Fold Belt. The regional host to the Sunday Creek mineralization is an interbedded turbidite sequence of siltstones and minor sandstones metamorphosed to sub-greenschist facies and folded into a set of open north-west trending folds.

Further Information

Further discussion and analysis of the Sunday Creek project is available through the interactive Vrify 3D animations, presentations and videos all available on the SXGC website.These data, along with an interview on these results with Michael Hudson, President & CEO, can be viewed at www.southerncrossgold.com.

No upper gold grade cut is applied in the averaging and intervals are reported as drill thickness. However, during future Mineral Resource studies, the requirement for assay top cutting will be assessed. The Company notes that due to rounding of assay results to one significant figure, minor variations in calculated composite grades may occur.

Figures 1 to 7 show project location, plan, longitudinal views and analysis of drill results reported here and Tables 1 to 3 provide collar and assay data. The true thickness of the mineralized intervals reported is approximately 50-60% of the sampled thickness for other reported holes. Lower grades were cut at 1.0 g/t AuEq lower cutoff over a maximum width of 2 m with higher grades cut at 5.0 g/t AuEq lower cutoff over a maximum of 1 m width.

Critical Metal Epizonal Gold-Antimony Deposits

Sunday Creek (Figure 2) is an epizonal gold-antimony deposit formed in the late Devonian (like Fosterville, Costerfield and Redcastle), 60 million years later than mesozonal gold systems formed in Victoria (for example Ballarat and Bendigo). Epizonal deposits are a form of orogenic gold deposit classified according to their depth of formation: epizonal (12 km).

Epizonal deposits in Victoria often have associated high levels of the critical metal, antimony, and Sunday Creek is no exception. China claims a 56 per cent share of global mined supplies of antimony, according to a 2023 European Union study. Antimony features highly on the critical minerals lists of many countries including Australia, the United States of America, Canada, Japan and the European Union. Australia ranks seventh for antimony production despite all production coming from a single mine at Costerfield in Victoria, located nearby to all SXG projects. Antimony alloys with lead and tin which results in improved properties for solders, munitions, bearings and batteries. Antimony is a prominent additive for halogen-containing flame retardants. Adequate supplies of antimony are critical to the world's energy transition, and to the high-tech industry, especially the semi-conductor and defence sectors where it is a critical additive to primers in munitions.

Antimony represents approximately 21% to 24% in situ recoverable value of Sunday Creek at an AuEq of 2.39 ratio.

In August 2024, the Chinese government announced it would place export limits from September 15, 2024 on antimony and antimony products. This puts pressure on Western defence supply chains and negatively affects the supply of the metal and pushes up pricing given China's dominance of the supply of the metal in the global markets. This is positive for SXGC as we are likely to have one of the very few large and high-quality projects of antimony in the western world that can feed western demand into the future.

Antimony Exempt from Executive Order on Reciprocal Tariffs

Southern Cross Gold Consolidated notes that antimony ores and concentrates (HTSUS code 26171000) are exempt from the April 2, 2025 US Executive Order on Reciprocal Tariffs. The exemption covers antimony ores and concentrates as well as unwrought antimony, antimony powders, antimony waste and scrap, and articles of antimony (HTSUS codes 81101000, 81102000, and 81109000).

About Southern Cross Gold Consolidated Ltd. (TSXV: SXGC) (ASX: SX2)

Southern Cross Gold Consolidated Ltd. (TSXV: SXGC) (ASX: SX2) controls the Sunday Creek Gold-Antimony Project located 60 km north of Melbourne, Australia. Sunday Creek has emerged as one of the Western world's most significant gold and antimony discoveries, with exceptional drilling results including 64 intersections exceeding 100 g/t AuEq x m from just 82 km of drilling. The mineralization follows a "Golden Ladder" structure over 12 km of strike length, with confirmed continuity from surface to 1,100 m depth.

Sunday Creek's strategic value is enhanced by its dual-metal profile, with antimony contributing 20% of the in-situ value alongside gold. This has gained increased significance following China's export restrictions on antimony, a critical metal for defense and semiconductor applications. Southern Cross' inclusion in the US Defense Industrial Base Consortium (DIBC) and Australia's AUKUS-related legislative changes position it as a potential key Western antimony supplier. Importantly, Sunday Creek can be developed primarily based on gold economics, which reduces antimony-related risks while maintaining strategic supply potential.

Technical fundamentals further strengthen the investment case, with preliminary metallurgical work showing non-refractory mineralization suitable for conventional processing and gold recoveries of 93-98% through gravity and flotation.

With a strong cash position, over 1,000 Ha of strategic freehold land ownership, and a large 60 km drill program planned through Q3 2025, SXGC is well-positioned to advance this globally significant gold-antimony discovery in a tier-one jurisdiction.

NI 43-101 Technical Background and Qualified Person

Michael Hudson, President and CEO and Managing Director of SXGC, and a Fellow of the Australasian Institute of Mining and Metallurgy, and Mr Kenneth Bush, Exploration Manager of SXGC and a RPGeo (10315) of the Australian Institute of Geoscientists, are the Qualified Persons as defined by the NI 43-101. They have prepared, reviewed, verified and approved the technical contents of this release.

Analytical samples are transported to the Bendigo facility of On Site Laboratory Services ("On Site") which operates under both an ISO 9001 and NATA quality systems. Samples were prepared and analyzed for gold using the fire assay technique (PE01S method; 25 g charge), followed by measuring the gold in solution with flame AAS equipment. Samples for multi-element analysis (BM011 and over-range methods as required) use aqua regia digestion and ICP-MS analysis. The QA/QC program of Southern Cross Gold consists of the systematic insertion of certified standards of known gold and antimony content, blanks within interpreted mineralized rock and quarter core duplicates. In addition, On Site inserts blanks and standards into the analytical process.

SXGC considers that both gold and antimony that are included in the gold equivalent calculation ("AuEq") have reasonable potential to be recovered at Sunday Creek, given current geochemical understanding, historic production statistics and geologically analogous mining operations. Historically, ore from Sunday Creek was treated onsite or shipped to the Costerfield mine, located 54 km to the northwest of the project, for processing during WW1. The Costerfield mine corridor, now owned by Mandalay Resources Ltd contains two million ounces of equivalent gold (Mandalay Q3 2021 Results), and in 2020 was the sixth highest-grade global underground mine and a top 5 global producer of antimony.