SXG (ASX) SXG Research / Summary

Originally posted by SugeKnight ↑

ASX:SXG "Southern Cross Gold"
SP: 44.5c
MC: $70M
Quick Summary here before we go into detail:
Sunday Creek is the flagship project. A historic epizonal field that extended over 10km and only a small portion of that was drilled during the 1800's and only in the top 50m looking for oxide gold.
"We've now drilled over 1km down to 400m depth and the best drill holes were the deepest holes* (*you'll see why this is important below).
We've seen extremely good mineralisation. This is probably the best discovery, outside the mines, that's been made in Victoria in literally the last 100 years".
Newmont - (who is a shareholder of Mawsons) stated that any 3 holes that go 100gram / meters (so multiplying the grams and meters) and anything that has more than 100g/metres is a pretty good hit.
You've got width or you've got grade or you've got both. Newmont considers that 3 of those 100g/meter Intersections in any one body as a genuine bonified discovery. Newmont is the world's largest gold company. Thats a rule of thumb.
We've already got 12 of those 100g/meter hits in 10km of drilling at Sunday Creek
Note: the above commentary was made on the 25th of May, before the "spectacular " assay result was released on the 30th May.
That assay result can be seen here: https://cdn-api.markitdigital.com/a...access_token=83ff96335c2d45a094df02a206a39ff4

(I may repeat myself on some notes because I've written this out over a few days and just jotting down the notes as they come).
Before we start, something of interest:
ABC News youtube video about "the riches flowing from Victoria's 'new gold rush':
This was published 2 weeks ago.
A new generation of gold miners are looking for riches in Victoria. To sum it up, the old timers overlooked the potential of many of the historic mines. Since 2 years ago, many people have acquired historic gold mines (ill explain why below) in Vic to dig deeper and better using new technology and also a new understanding of geology. With modern drilling techniques, they can go much deeper and search thoroughly. In an example in the YouTube video, they show how the old timers dug to the left and found nothing. But had they dug to the right, they would have dug their pick into a gold bearing ore. "Modern technology removes the guess work, and can drill 1km into the ground."
New Geological mapping links some of these historical mines (including SXG's mine) to Fosterville. Fosterville is the world's highest grade and lowest cost gold mine, and it's located in Victoria. It has produced more than half a million ounces from underground in the past 2 years. This is what has caused a new frenzy of acquiring and exploring historic Victorian mines that have the same geology as Fosterville.
Below is an abstract of a research report about Fosterville:
Now let's get back to SXG:
Was just watching the ********* interview on YT (https://youtu.be/6oWNEXso3Hc) when they first IPO'd in May 2022 and some key notes / interesting details below:
(Note: this interview was on the 25th of May, before the "spectacular " assay result was released on the 30th May)
The company just IPO'd a few months ago and is cashed up with about $8M (after expenses)
Mawson owns 60% and they're escrowed until 2024, so they can't sell any shares / tightly held structure
The directors are also invested in the company, and even the drilling contractor is invested (which is pretty weird given the possibility of insider trading etc but definitely a positive if the drillers are interested)
Plenty of newsflow in the pipeline, due to the company having drilled 10 holes already pre-IPO (some holes data already released while other holes still in the lab pending assays) and have ongoing drilling with 2 rigs now on site
The director says they don't want to waste any time as they've already made a discovery and will be quite aggressive on working on this project.
Theyll be spending the majority of the money and time on Sunday Creek.
They have 3 projects (all historical Vic mines) - Sunday Creek is the flagship project which they own outright (and the one where theyve made the recent discovery).
All 3 projects are historical mines that haven't been touched for like 100 years
He talks a lot about the geology and the opportunity now in relation to the historical drilling in Victoria etc, it's very interesting and you should watch the video. He says gold in Victoria peaked in the 1800's but died off in the 1900's. It's only in the last 5 years that interest has returned - due to the discovery of fosterville and the geology that formed that deposit "epizonal deposits" / "analogue"
It's the same style of gold as fosterville , it's "analogue" which is a geological term. This type of gold is different to Bendigo and Ballarat, and it's what they have / what they want (he says this is the type of gold you look for in Victoria).
About Sunday Creek (SXG flagship project):
This was mined in the 1800's , it extends over 10kms, but only a little portion of that had been drilled looking for oxide gold in the top 50m.
They've now drilled out about a 1km down to 400m depth and the best drill holes were the deepest holes.
The director says the discovery of gold they've made, its the same geological event and the same type of gold as Fosterville (an analogue).
Newmont - (who is a shareholder of Mawsons) stated that any 3 holes that go 100gram / meters (so multiplying the grams and meters) and anything that has more than 100g/metres is a pretty good hit. You've got width or you've got grade or you've got both. Newmont considers that 3 of those 100g/meter Intersections in any one body as a genuine bonified discovery. Newmont is the world's largest gold company. Thats a rule of thumb.
We've already got 12 of those 100g/meter hits in 10km of drilling at Sunday Creek.
(Note: again i will note that this comment was made on the 25th of May, before the "spectacular " assay result was released on the 30th May). So it sounds like this project has some very serious and genuine potential.
Upcoming news / Catalysts:

Holes 34, 35, 36 and 37 are currently in the lab and assays are due any day now. These holes were drilled pre-ipo and pre discovery of the "spectacular" result.

The company is currently drilling hole 38 which is around the hole of the "spectacular" result and this hole has assays expected in late July. (You can call this hole the follow up drill)

A second rig will be arriving on site before months end to focus on extending and infilling mineralisation

Please feel free to add your commentary. I've taken a position over the past few days as a punt on some further potentially exciting drilling results

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Just a reminder ...... This was the Best post for SXG ........ we hardly scratched the surface and we are at 82c ......... $$$$$$$.

Hoping for new highs this week.

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(20min delay)
Last $3.09		Change -0.110(3.44%)		Mkt cap ! $613.2M

Open	High	Low	Value	Volume
$3.20	$3.20	$3.02	$486.4K	156.6K

Just a reminder ...... This was the Best post for SXG ...........

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