Southern Cross Gold Consolidated Ltd. (TSX:SXGC) - Underground Drilling Kicks Off With 14 Rigs Now Turning - Research Portal

Southern Cross Gold Consolidated Ltd. (TSX:SXGC) - Underground Drilling Kicks Off With 14 Rigs Now Turning - Research Portal

Southern Cross (SXGC) announced that underground drilling has started at its 100%-owned Sunday Creek gold-antimony project in Victoria, Australia. Two rigs have been mobilized into the exploration decline, joining the 12 surface rigs for 14 rigs now operating. Two more rigs follow later this month, and the Company expects to have up to 24 rigs operating in Feb/27. Moving drilling underground allows 24-hour drilling with reduced surface impacts, and drilling shorter holes at depth would reduce the metres, and cost, required to test each target. SXGC is planning to prepare the initial MRE and economic studies in H1/27. We maintain our Neutral rating but are lowering our price target to C$10.00/sh (from C$12.00/sh), as we now build an equity financing into our valuation.