Southern Cross Gold Consolidated Ltd. (SXGC) Earnings Call Transcript

Good morning, everybody. Another day and another result from Southern Cross. We're trying lots of different things here as we continue to infill and demonstrate continuity of the high grades. But here is something very different. We took a big swing. We drilled almost half a kilometer beneath Golden Dyke. We drilled the deepest hole on the project, and we've hit a 66-meter downhole intersection of the mineralized host true width about half of that 28 meters exactly. And we've drilled a lot of gold. It's lower grade gold over the total length. We saw up to 5.4 grams gold over 0.9 meters, and 6.6 meters at 1 gram over a broader interval there. So we've demonstrated that the system continues at great depth beneath Golden Dyke. It is the deepest hole on the project. It's a transformational hole in that we show that there's another 50% essentially of volume beneath where we've drilled at Golden Dyke to come. So these are big swing holes to test the rails of the system, the rails of the ladder. We were drilling parallel to the veins because that's what we need to do. We need to drill these control holes that are demonstrating the host, and we are very fortunate to hit veins that held gold. So it is an amazing result. It is demonstrating that the system continues. We are very happy to see that we've got an arsenic antimony ratio or an antimony arsenic ratio that demonstrates that we're down in the deeper parts of the system, the sulphosalt ductile brittle, lots of geological words. What does that mean? We're into that Cinderella zone. So it gives us a great opportunity now to follow up in an east-west direction. This hole was drilled from the south to the north, where we can go across the veins or the rungs of the ladder to follow that up. Now notwithstanding, we've got another hole based on the confidence of this hole ongoing now that will go even deeper, a 2-kilometer long almost drill hole that we've started. This gives us the confidence to go and test along that 1.4 kilometers, another hole at depth. So an incredible result on many levels, demonstrating that what we wanted to test was that the system continued to depth, it continues. So this is -- we drilled it to a kilometer with a lot of drilling now. This now goes deeper, about 1,230-odd meters beneath Golden Dyke, so deepest hole on the property and another nearly 500 meters beneath Golden Dyke. And a great result Southern Cross just continues to get bigger and it got bigger in one fell swoop today. The exploration optionality here at Sunday Creek is extremely large. As I mentioned, we drilled out an area 1.4 kilometers by 1 kilometer depth. We took a hole here down to 1,230 meters vertically and 460 meters beneath Golden Dyke, demonstrating the system continues. We've got another hole going down 2 kilometers or 2,000 meters under rising sun adjacent to it. And now that's only 10% of the larger trend, which is over 10 kilometers or more. So we've got a series of old mines that we've talked about a lot where we've drilled under this core area, but those old mines extend for 10 kilometers along strike to the east and there's evidence also to the west. So massive optionality on exploration upside at Sunday Creek, along with one of the most exciting discoveries in the space within that core area where we've seen a hit rate that exceeds pretty much every other project on earth today. Sunday Creek was one of the most exciting projects on earth today with that hit rate that we've seen that continues to deliver 100-gram hits time after time after time. But now we've just demonstrated the footprint has expanded massively beyond the known area with a big Wildcat hit down at depth, and we've got another one coming to test, another hole testing that at depth along strike under rising sun. And this is only a small part of where we've got our system developing with rigs up to 8 kilometers away. So we have 10 rigs on the property today, one drilling at depth that we've talked about, one 8 kilometers away at Tonstal and one more coming in the coming month. We'll have to put it to 11 rigs. We have an abundance of news flow. We've got 49 drill holes that we're drilling or in the lab. So keep your eyes on Sunday Creek. It just becomes bigger and better every release by release.