Southern Cross Gold CEO Michael Hudson on Hitting 12.2 m @ 32.4 g/t Gold at Golden Dyke

Happy New Year, Gerardo. It is quite the market, and as we've probably spoken about before, having a tier one discovery with tier one shareholders in a tier one market is the way to amazing wealth creation, and getting those things right is certainly what's happened at Southern Cross thus far.

For sure. And those things matter, scale and grade, because they create — if you can find something big and high grade, of course that's the magic mix geologically, and continuity is everything around the minability, and that's what you absolutely want to see. And when the wall of worry at every instance in any discovery, people start to take that next step, and very much we're on that next step now of that pre-development project. So the minability of this project is very important. Hence why the continuity and the absolute weight of evidence that comes from 10 rigs poking lots of holes into this project is delivering in spades.

So this was one hole and the headline was the best intersection in Golden Dyke. Now we've got a 1.4 km system which is part of a 10 kilometer system of old mines. We're focusing on the 1.4 with those actually eight rigs focused in that 1.4 and two outside it. And then we've got these old mines and we fall into the trap of drilling these prospect names based on these old mines. And we'd be drilling below an old mine, which is the most prolific mine on the historic Sunday trend, which was mined during the mid to late 1800s predominantly, and Golden Dyke was down to 180 meters of mining in the day. So it was quite significant. So we left it later to test it because there was lots of surface mineralization that we were drilling. Now we're drilling beneath Golden Dyke and the old-timers didn't get it too wrong. The system is looking very good, and looking good as its neighbor about 300 meters east of it called Rising Sun. Now we've tested Rising Sun down to a kilometer or more and it's looking — well, it clearly is the best part of the system that this huge amount of very high grade gold has come out of Rising Sun, and Golden Dyke is only down to 600 meters at the moment that we've tested it.

And the tenor of grade — and you quoted the 12.2 m at 32.4 grams gold and had 4% antimony in that intersection as well, which included the thousand grams — is looking at that tenor.

Now these systems, two key points I want to make, and I know I'm taking a long time to describe this, but number one, these epizonal systems in Victoria, like we saw at Fosterville and the Swan Zone, get better at depth. So we're just starting to get into that better part of the system at Golden Dyke, and Rising Sun got better below 500 meters and we're just starting to see that at Golden Dyke. So we're just touching arguably the better parts of the system at Golden Dyke despite these very high grades that we're just getting in slightly above that transition zone.

And then also what happened here is that we've drilled other holes in this press release that actually demonstrate that Golden Dyke and Rising Sun are one system. They join, and we've now joined that 160 m gap between them. So lots of very good things. We drilled eight different veins and two were new and we've never seen before. So the grades are looking fantastic, the volume is increasing and the continuity is there, and there's so much more to discover in the detail if you look, if you delve down into this press release.