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Michael Hudson
President, Chief Executive Officer and Managing Director, Southern Cross Gold Consolidated

With Michael Hudson of Southern Cross Gold - and look who has been buying shares!

📅 Aug 19, 2025 Alpha Capital Australasia 14 MIN 891 VIEWS 14 SEGMENTS · 2 SPEAKERS
Sean Sandilands, Senior Advisor with STK Markets catches up with Michael Hudson, President and CEO of Southern Cross Gold Consolidated (ASX:SX2 and TSX:SXGC). They discuss: πŸ”Ή [0:00–0:31] Introduction Past strong performance, recent pullback viewed as a buying opportunity. πŸ”Ή [0:31–1:48] Project Overview & Performance The project is in a tier-one jurisdiction (Victoria, Australia) with major institutional backing. Southern Cross boasts a world-class hit rate, with exceptionally high-grade results. Exploration Target: 2.2–3.2 million ounces at 8.5–10.6 g/t gold equivalent, a rarity globally. πŸ”Ή...

Questions asked in this interview

3
  1. 0:34Can you just go over why that's so important for the company?
  2. 4:00So you've got drill holes going down there at the moment, do you?
  3. 11:07Why will there be a rerating in the stock coming up?
Sean 0:08 ↗
Hi everyone, it's Sean from SDK Markets here. We've got Michael Hudson, the president and CEO of Southern Cross Gold, just for an update for our investors. We've all got a lot of shares in Southern Cross. It's been performing well over the years. It's had a little recent pullback which we view as a buying opportunity. So, we thought it prudent to give you an update of all things Southern Cross and why we still think this is a screaming buy even at these levels. Mike, thanks for joining. It's good to see you again.
Michael Hudson 0:32 ↗
Sean, always a pleasure.
Sean 0:34 ↗
Mike, we know you've been very busy with the project. It's in a tier one jurisdiction. You've got major shareholders which are institutions. The hit rate is just phenomenal. Can you just go over why that's so important for the company?
Michael Hudson 0:50 ↗
Yeah. So, since we last spoke, Sean, we've done lots of things. And the project is very much advancing rapidly. Time is our biggest enemy here. And so we're trying to shortcut a number of things. No doubt that the hit rate is world class. We don't see gold coming out of many deposits globally at the rate that we have been hitting for the last few years. So I think that weight of evidence is very much in everybody's minds. We've got an exploration target at 2.2 to 3.2 million ounces, 8.5 to 10.6 g per ton gold equivalent. There's very few tier one multi-million ounce 10 g deposits on Earth. That's very much a fact. So, we're in a very rare club and we're only a very small part of the way through this discovery, but the project now has pivoted to where we say, well, okay, we've got the scale now. We've made it big enough to at least start looking at what this could look like as a mine. That means we need a lot more drill out and that's the biggest time limitation. So, we've got nine rigs today. We're going to 10 rigs and we're permitting a decline. If and when we get that decline permitted and constructed, which we're aiming for mid next year to have that constructed, then we can bring another 12 rigs underground. There's very few projects worldwide that have got 10 rigs on them as a pre-development project, let alone 22. And that brings the drill out to a significant resource and a project that we can engineer, put parameters around much quicker. Drilling underground and drilling 24/7 with more rigs is basically three times as fast. So it also derisks the project from an environmental permitting point of view because we're progressively permitting and also derisks it from the geological and resource model. We're getting under the ground and seeing it, mapping it, and sampling it and making sure it holds together like we see in drill holes that may be 50 m apart. So, we're confirming our interpretation. So, that's the plan is to run through 200 km of drilling, the decline, engineering studies. That's what we've funded the project for. So, we've just raised $162 million in May. So we have a treasury now to execute on that plan. And the only other part of that is that I just touched on, we've got $20 million set aside for regional exploration to explore the other 90% of the trend that we haven't along strike. So there's a series of old mines that everybody knows that we've only looked at a small part of that. And also even today we're drilling holes down to 1,800, 1,900 meters which will see a 500 meter test below the current exploration target area that we're infilling.
Sean 4:00 ↗
That's one of the key things that initially got us interested in Southern Cross three or four years ago was that the comparable to Fosterville where they go deep and that's where the swan zone was. They had a lot of gold like you up in the above one kilometer region and you've got a lot of gold there too which is where your studies have been done for your economic targets. Exploration targets underneath that though is where they hit the mother lode. So you've got drill holes going down there at the moment, do you?
Michael Hudson 4:28 ↗
We do. We do and we've seen the deposit become very good from about 500 meters or 400 to 500 meters that transition where we start to see these very high grades of gold that have defined this project over the last few years. But the geological optimism, but the geological reality is that we mightn't be in the best parts of the system yet in which we've drilled down to a kilometer. So we know that Boston-Deakin as the peer next door is drilling holes down towards 2 km now. So let's see what happens down there and whether with a couple of holes we can test that the system continues which is the main aim. So the rails of the ladder continue down into the earth and let's hope we can hit one or two of the rungs of the ladder which are the veins. Which is a bit harder because we're drilling for the system to continue the rails. So, we're drilling somewhat parallel to the rungs to get those deeper holes, but you never know until you test it. And let's see what's happening down there. It will add substantial resource potential to the project. Of course, if we can define those rails that continue,
Sean 5:37 ↗
One of the things you've said, it's about the grade. Obviously, grade is king. You're 10 grand plus. Pierre was buying some last week. He thinks it's five, six times the value from here, which is why he's buying at these levels, which is great to hear. But that grade is king where you're sort of focused on though is the highest margin business. And we've had a couple of naysayers that when you go deep, it's going to be too expensive to mine. Well, you got Fosterville that was one of the lowest cost producers, which is the highest margin in the world at these deep levels. So, it's already been proven you can make a fortune going deep. And the economics would be very similar to Southern Cross if that was the case.

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APA

Hudson, M. (2025, August 19). With Michael Hudson of Southern Cross Gold - and look who has been buying shares! [Interview transcript]. Alpha Capital Australasia. CEOInterviews.AI. https://ceointerviews.ai/interview/3041146/

MLA

Michael Hudson. "With Michael Hudson of Southern Cross Gold - and look who has been buying shares!." Alpha Capital Australasia, 19 Aug. 2025. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/3041146/.

BibTeX
@misc{hudson2025_3041146,
  author       = {Michael Hudson},
  title        = {With Michael Hudson of Southern Cross Gold - and look who has been buying shares!},
  howpublished = {Interview transcript, Alpha Capital Australasia. CEOInterviews.AI},
  year         = {2025},
  month        = {aug},
  url          = {https://ceointerviews.ai/interview/3041146/},
  note         = {Speaker-attributed transcript with timestamps}
}