Gold Exploration
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Based on Southern Cross's three-pronged exploration strategy, the Company's gold exploration program comprises:
1. Increase Resource/Reserve base at existing deposits
View Southern Cross Goldfields' current JORC-compliant resources.
An extensive drilling program is planned for 2011 to in-fill the existing resource models and target resource extensions. The Python, Goldstream and Dolly Pot deposits all remain open at depth, and Southern Cross believes significant potential exists to expand these resources through further drilling.
Python Deposit - cross section
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Goldstream Deposit - cross section
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Dolly Pot Deposit - cross section
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2. Establish initial resource estimates for key exploration targets
Southern Cross has a large number of exploration targets that have delivered promising past drilling results or seen historic mining, however many of these targets have not been closely assessed.
The Company's goal is to conduct further exploration over these areas to establish maiden resource estimates, with the potential to add additional tonnes to a future mining operation.
Key initial targets include:
Andromeda deposit
Southern Cross identified gold mineralisation over a strike length of 200m at Andromeda in 2008, including results of up to 16m @ 3.10g/t Au from 88m, and in May 2010 completed a RAB drilling program to the north and west of Andromeda to test along strike of the previously identified mineralisation.
The program comprised 39 holes for 1,901m of drilling, and successfully extended the mineralisation to the north by between 80m and 160m, with two adjacent holes returning intercepts of 8m @ 0.74g/t Au from 52m (ADRB007) and 8m @ 1.04g/t Au from 52m (ADRB008). It appears that a repeat may be starting on the northernmost line drilled, with ADRB030 returning 4m @ 0.23g/t Au from 52m. In addition, an indication of a sub-parallel zone to the west has been identified.
The Company's next aim is to trace the auriferous structure along strike to the north and south to identify targets on that prospective trend.
Blue Peter deposit
Significant gold mineralisation has been intersected historically at the Blue Peter prospect, located adjacent to the Evanston Mine within the Marda Project area. Two RC holes which were drilled to confirm the continuity of existing mineralisation at the prospect provided encouraging results. Weak to intense silicification and sericite alteration is seen within the host BIF unit together with abundant iron oxide and minor patchy pyrite. The following intersections were returned:
| Hole Id | MGA East | MGA North | Depth m | Azimuth mag | From (m) | To (m) | Interval (m) | Grade g/t Au |
|---|---|---|---|---|---|---|---|---|
| BPRC001 | 739634 | 6706631 | 72 | 140 | 29 | 36 | 7.0 | 3.75 |
| BPRC002 | 739653 | 6706668 | 83 | 140 | 36 | 42.0 | 6.0 | 2.36 |
Evanston Mine
Previous mining at the Evanston Mine was conducted in two phases. The first by Western Mining Corporation and Evanston Gold NL between 1929 and 1951, when a total of 61,000oz of gold was produced at an average grade of about 16g/t Au. The second was by Herbert Mining during the late 1990s and early 2000s. Records of this mining are scanty but it is believed around 0.2-0.3Mt grading 3-4g/t Au (20,000 to 40,000 ounces) was mined.
A considerable pre mining (non JORC) resource existed in the late 1990s and potential for a significant remaining deposit can be interpreted.
Work will target the Evanston Shear Trend where gold mineralisation occurs in a variety of geological settings. The trend is masked by thick soil cover over much of its strike making earlier prospecting and exploration ineffective. RAB drilling is planned to test this area beneath cover in 2011.
3. Greenfields exploration program
Working in a highly prospective established mining province, the Company believes there is significant potential for the discovery of a major new +1Moz gold deposit. The Company is utilising modern exploration techniques to target new discoveries.
A key initial target is the Sirius deposit, which was identified in a regional review and targeting exercise during 2009. It is located within the northern part of the Bullfinch North project area and is considered prospective for gold mineralisation based on its good structural setting to the north of the Ennuin Dome granite and the presence of several east-west fault repeated ultramafics.
In May 2010 Southern Cross conducted north-south oriented drilling to test areas of anomalous geochemistry. The program comprised a total of 9,048m of RAB drilling in 479 shallow holes (average 19m depth). Five clusters of anomalous gold assays were returned, with strike lengths ranging from 100m to 800m at plus 50ppb Au. Best drilling results included 9m @ 0.85g/t Au from 20m to end of hole (including 4m @ 1.63g/t Au from 20m).
The Company has identified numerous additional greenfields targets, which will be prioritised and assessed over the medium term.
The Company will undertake an aggressive exploration programme targeting the Evanston Shear zone south of the Red Boomerang prospect, where porphyry-hosted mineralisation has been previously identified. This porphyry host demonstrates the potential for large mineralised systems along that trend by analogy with other porphyry-hosted systems in the Yilgarn Craton such as Kanowna Belle. Reconnaissance exploration has been undertaken around the Deception Hill, Red Boomerang and Prindiville prospects, highlighting the potential for blind discoveries along strike from the known porphyry-hosted gold mineralisation at Red Boomerang and Deception. A RAB drilling program will be planned to test the prospective lithologies under soil cover to the south of Red Boomerang.