Southern Cross Goldfields Ltd

Gold Projects

In the Southern Cross and Marda districts of the central Yilgarn Craton, SXG has gold resources totalling 216,000 ounces plus conditional purchase (CP) of an additional 178,000 ounces, giving it effective control over 394,000 ounces. The distribution of these ounces is presented in JORC compliant format in Table 1 and the location of the deposits is shown on link to Gold Resources image.

Project Area Deposit Measured Indicated Inferred Total
Tonnes g/t Au Ounces Tonnes g/t Au Ounces Tonnes g/t Au Ounces Tonnes g/t Au Ounces
Jackson Trend King Brown 176,000 3.0 17,000 25,000 2.2 2,000 201,000 2.9 19,000
Golden Orb 1,023,000 2.2 71,000 1,023,000 2.2 71,000
Parker Range British Hill 1,108,000 1.9 67,000 529,000 1.9 33,000 1,637,000 1.9 100,000
Battler 308,000 2.2 21,000 93,000 1.7 5,000 401,000 2.0 26,000
TOTAL SXG 1,592,000 2.1 105,000 1,671,000 2.1 110,000 3,263,000 2.1 216,000
Marda Python 502,000 2.0 32,000 241,000 1.8 14,000 117,000 1.7 6,000 859,000 1.9 52,000
Dolly Pot 488,000 1.9 29,000 178,000 1.6 9,000 85,000 1.5 4,000 751,000 1.8 43,000
Dugite 196,000 2.1 13,000 82,000 1.7 5,000 20,000 1.6 1,000 298,000 2.0 19,000
Goldstream 200,000 1.9 12,000 26,000 1.6 1,000 7,000 1.6 1,000 233,000 1.9 14,000
Die Hardy Mt King 523,000 3.0 50,000 523,000 3.0 50,000
TOTAL CP 1,385,000 2.0 87,000 527,000 1.7 29,000 753,000 2.6 62,000 2,665,000 2.1 178,000
TOTAL 1,385,000 2.0 87,000 2,119,000 2.0 134,000 2,423,000 2.2 173,000 5,928,000 2.1 394,000

These resources have recently been updated by consultants Hellman & Schofield on behalf of SXG. This has resulted in a significant increase in contained ounces from the estimates in SXG's prospectus. A scoping study is planned during the next twelve months to look at various options on how to best exploit these resources.

In addition to the known deposits, good exploration potential has been demonstrated by SXG's recent drilling at Andromeda:

Prospect Hole Number From (m) To (m) Interval (m) Grade (g/t Au) Comments
Andromeda ADRC001 57 78 21 1.5
including 72 76 4 3.0
ADRC002 88 104 16 3.1
including 90 100 10 4.4 includes 1m @18.8g/t Au

The mineralisation at Andromeda (Figure 3) is open, with the nearest drilling to the north being approximately 6km along strike. Mineralisation is also open at depth as shown on Figure 3. Surface geochemistry here is of limited use due to the presence of a thin (<5m) veneer of barren transported overburden (hardpan). Additional RAB and RC drilling is required, particularly to the north of this recently identified strong mineralisation zone, in order to assess the true potential of the area. The meta-sediment host rock at this prospect is unlike the usual banded iron formation (BIF) host for most of the mineralisation in this district, and hence potential for larger tonnage mineralisation systems is interpreted. Good potential exists for gold mineralisation throughout the Southern Cross and Marda-Diemals tenements, as suggested by the presence of at least five gold deposits of greater than one million ounces within the belt, the northernmost (Copperhead) only a few kilometres from SXG's tenements. High grade mineralisation intersected at Scorpio by previous explorers (4m @ 8.2g/t Au from 107m in drill-hole MCRC001) is a good early indication that large mineralisation systems may be present within the Bullfinch North Nickel Project tenements as well as the Marda Gold Project tenements.

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