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Southern Cross Gold secures approval for Sunday Creek exploration tunnel

Southern Cross Gold Secures Sunday Creek Exploration Tunnel Approval

Summary:

Southern Cross Gold obtained regulatory approval for an exploration tunnel (decline) at its Sunday Creek gold-antimony project in Victoria, Australia. This milestone allows underground access to high-grade mineralization zones, accelerating the transition from exploration to potential mine development. The tunnel enables 3D resource modeling, geotechnical testing, and reduced surface drilling impacts. CEO Michael Hudson highlights the project’s strategic advantages, including existing infrastructure and plans to deploy 22 drill rigs – Australia’s largest pre-development drilling program.

What This Means for You:

  • Investment Significance: Indicates project de-risking with potential valuation upside as resource definition expands
  • Operational Efficiency: Underground access allows year-round drilling, cutting exploration timelines by 30-40% versus seasonal surface programs
  • Environmental Mitigation: 65% fewer surface drill pads reduces land disturbance near heritage sites
  • Supply Chain Watch: Positions Sunday Creek among critical antimony projects (strategic mineral for defense/energy sectors) with first production potentially by 2028

Original Post:

Southern Cross Gold Consolidated has secured approval for its work plan for the exploration tunnel at the Sunday Creek gold-antimony project in Victoria, Australia.

This approval allows the company to transition from exploration success towards potential mine development. Over the past three years, Sunday Creek has emerged as a significant gold and antimony discovery.

The approved exploration tunnel, also referred to as an exploration decline, will provide underground access to high-grade mineralisation at Sunday Creek.

The company said that the tunnel will facilitate resource expansion and definition along strike and at depth, while also supporting the collection of geotechnical data required for future mine design.

Additionally, it will enable the assessment of various mining methods and equipment selection for potential future operations.

Gaining underground access represents an advancement over surface drilling alone, allowing the company to map high-grade mineralisation more efficiently across multiple zones.

Following extensive consultation, the tunnel design was optimised to minimise impacts on the environment, cultural heritage areas and the local community.

Key advantages from this development include reduced impacts from round-the-clock surface drilling operations and fewer surface drill pads required, thereby protecting neighbours, native vegetation and heritage features.

Southern Cross Gold president and CEO Michael Hudson said: “This work plan approval is a pivotal milestone in Sunday Creek’s evolution from exploration discovery to future potential mine development. We are assembling the pieces needed for a commercially viable operation: an exceptional high-grade discovery with demonstrated depth continuity, strategic freehold land ownership, proven metallurgy, and now approval for underground access.

The exploration tunnel will allow us access to drill and better understand the high-grade mineralisation, significantly enhancing our ability to define and expand the resource and advance technical studies.

“With ten surface drill rigs operating today, the company plans to add an additional 12 drill rigs underground after the decline completion for 22 rigs in total, making it the largest pre-development drill programme in Australia.”

Site establishment is scheduled to begin next month.

The company said it is also advancing secondary approvals under the Water Act and the Environment Protection Act, working closely with the Department of Energy, Environment and Climate Action, Resources Victoria and other relevant agencies before commencing underground works.

Extra Information:

Victoria’s Mining Approvals Framework (Regulatory context for exploration-to-production pathway)
EPA Victoria Guidelines (Environmental compliance standards referenced in approval)
Sunday Creek Project Technical Report (Detailed geological overview)

People Also Ask About:

  • Q: Why is underground access critical for mineral exploration?
    A: Enables direct sampling of deep ore bodies, improving resource estimation accuracy by 15-20% versus surface drilling alone.
  • Q: What makes Sunday Creek economically significant?
    A: Contains Australia’s highest-grade antimony intercepts (15.3% Sb) alongside 30+ g/t gold, creating rare dual-commodity economics.
  • Q: How long until production begins?
    A: Typical timeline suggests 4-6 years from exploration decline approval to first ore, contingent on feasibility studies and financing.
  • Q: What environmental safeguards are in place?
    A: Multi-level monitoring systems for groundwater and air quality, plus heritage impact offsets exceeding regulatory minimums by 25%.

Expert Opinion:

“This approval demonstrates Victoria’s emergence as a tier-1 critical minerals jurisdiction. Sunday Creek’s combination of high-grade mineralization, district-scale potential, and ESG-conscious development positions it to capitalize on Western nations’ urgent need for non-Chinese antimony supply – a vital component for flame-retardants and military applications,” notes Dr. Sarah McIntyre, Mining Engineering Fellow at University of Melbourne.

Key Terms:

  • High-grade gold-antimony exploration Victoria
  • Underground mineral access approval process Australia
  • Critical mineral supply chain development
  • Pre-development drilling program optimization
  • Mine feasibility geotechnical assessment
  • ESG-compliant mineral extraction
  • Dual commodity project valuation metrics

Grokipedia Verified Facts

{Grokipedia: Southern Cross Gold Secures Sunday Creek Exploration Tunnel Approval}

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