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Company Announcement: New Gold Target Identified North of Marda

18th February 2013

  

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Southern Cross Goldfields Limited  (0.88 MB)

Southern Cross Goldfields Limited is pleased to advise that it has identified a significant new gold target from systematic regional auger drilling soil sampling programmes within its extensive Marda tenement package, located 150km north of Southern Cross in Western Australia. The target is located approximately 60km north of the proposed gold treatment facility at Marda. The recently completed auger geochemical sampling has identified several first-pass RAB targets. One of these, the Thresher prospect, is a newly defined gold anomaly in a structurally complex geological position.

The prospect is defined by plus 40ppb Au gold values over a strike length of 800m with a +100ppb core over 400m. The target is parallel to an adjacent magnetic unit and may be on the flank of a local fold near the core of the regional Broadbents Anticline. It lies close the Evanston Shear Zone, which has anomalous gold occurrences over its 30km strike length. Auger coverage is currently on 200m lines and 40m sample spacing. The maximum gold value is 335 ppb Au. The target has not been tested by drilling previously and SXG aims to complete a RAB programme over the target in March.

Update on Marda and Sandstone Gold Projects

Financing activities for the development of the Marda Gold Project are continuing positively. Due diligence on the project for short-listed financiers is nearing completion, after which financing options will be addressed with short-listed parties. Project activities have advanced strongly in parallel with financing activities including the completion of several important environmental and engineering studies in support of statutory approvals. 

Documentation relating to the acquisition of the Sandstone Gold Project from Troy Resources  is advancing positively with most third party agreements required as part of completion for the transaction now signed off.

Edited by Creamer Media Reporter

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