Southern Cross Goldfields Limited is pleased to advise that it has identified another significant gold target from the recent systematic regional auger drilling soil sampling programmes within its extensive Marda tenement package, 150km north of Southern Cross in Western Australia. The new target, White Pointer, is located approximately 40km north-west of the proposed gold treatment facility at Marda and, together with the recently identified Thresher prospect, represents a priority RAB drilling target for SXG. The new prospect, White Pointer, is defined by plus 40ppb Au gold values over a strike length of 2,200m with a +100ppb core over 1,000m. The prospect is parallel to the regional strike of the Evanston Shear and is approximately 1,200 metres northwest of the Red Boomerang Prospect.

Red Boomerang is a strongly mineralised nested porphyry system which has returned strong gold intersections from historic drill testing including 11 metres @ 4.7 g/t Au and 6 metres @ 5.8 g/t Au. The Evanston Shear Zone has anomalous gold occurrences identified over 35km of strike. Auger coverage is currently on 200m lines and 40m sample spacing. The maximum gold value is 764ppb Au (approximately 0.8g/t Au). The target has not been tested by drilling previously and SXG aims to complete a RAB drilling programme over the target in March.

“We are continuing to unearth very exciting new gold targets at Marda, all of which are completely untested by drilling,” said SXG’s Managing Director, Mr Glenn Jardine. “This highlights just how under-explored these tenements really are and how significant the opportunities are to grow our current gold resource inventory. We expect the systematic regional exploration programme to continue to identify targets to follow-up.”

Update on Marda and Sandstone Gold Projects

Further to last week’s update, due diligence on the project for the short-listed Marda project financiers by the independent technical expert is expected to be completed this week. Financing options will now be addressed with the short-listed parties. Third party agreements are required to be executed as part of completion of the Sandstone acquisition with parties having existing interests in the Sandstone tenements. Most of these agreements have now been finalised.