Southern Cross Gold Commences Permitting Process For Sunday Creek Exploration Tunnel

Rhea-AI Summary

Southern Cross Gold (TSXV:SXGC, ASX:SX2, OTC:MWSNF) has initiated the permitting process for an underground exploration tunnel at its 100%-owned Sunday Creek project in Victoria. The company plans to submit a formal application in Q3 2025.

The proposed tunnel will be approximately 150 meters deep and 600 meters long, enabling 24/7 underground drilling operations in 2026. Key features include:

• Location on company-owned land with private road access
• Construction expected to take 6-12 months starting 2026
• Infrastructure designed to minimize visual impact
• Environmental surveys ongoing to ensure minimal community impact

The permit is strictly for exploration purposes, with any future mining activities requiring separate approvals. The company has scheduled community drop-in sessions throughout March and April across Mitchell Shire to engage with local residents.

Positive

• Underground tunnel will enable expanded 24/7 drilling operations
• Project infrastructure designed to minimize environmental and community impact
• Company owns the land and has private road access, reducing permitting complexity

Negative

• Project completion not expected until at least 2027
• Additional permits required for any future mining operations
• Significant capital expenditure required for tunnel construction and infrastructure

VANCOUVER, BC AND MELBOURNE, AUSTRALIA / ACCESS Newswire / March 11, 2025 / Southern Cross Gold Consolidated Ltd. ("Southern Cross Gold" or the "Company") (TSXV:SXGC)(ASX:SX2)(OTC PINK:MWSNF)(Frankfurt:MV3.F) is pleased to announce it has commenced the permitting process for an underground exploration tunnel at its 100%-owned Sunday Creek project near Clonbinane, Victoria. It is anticipated the Company will submit a formal application to the Victorian Resources regulator in Q3 2025.

Key Highlights:

• The permitting process commencement represents a significant milestone as the Company continues to advance the Sunday Creek Project

• The proposed exploration tunnel is planned to be approximately 150 meters deep and 600 meters long, enabling underground drilling in 2026

• Underground drilling will allow the Company to introduce more drill rigs that operate day and night without increasing impacts to the community

• The site will be located on SXGC-owned land accessed via a private road

• Environmental surveys are currently underway to ensure minimal impacts on the local environment and community

• Drop-in information sessions scheduled across Mitchell Shire for community engagement

Michael Hudson, President & CEO of Southern Cross Gold Consolidated, commented "The commencement of permitting for an exploration tunnel (or decline) represents a significant step forward for Southern Cross Gold that will enhance our exploration capabilities while reducing impacts on the local community. Underground drilling will allow us to operate more drill rigs and help us understand the Sunday Creek deposit more efficiently than our surface drilling program alone. We are committed to working with the local community throughout this process and look forward to sharing more details about this project in the coming months."

The planned tunnel will enable drilling to occur from underground, reducing noise and light emissions associated with surface drilling. The infrastructure has been designed to minimize visual impact, with buildings and structures positioned behind hills and natural vegetation to shield them from view.

Once permitted, construction is expected to begin in 2026 and will take approximately 6-12 months to complete. Infrastructure including sheds, workshops, offices and dams will be constructed during daylight hours. Once completed, underground drilling will operate 24 hours a day, seven days a week.

The permit is for exploration purposes only and does not permit mining. Any future mining activity would require a separate approval process with community participation.

The Company will host a series of community drop-in sessions throughout March and April across the Mitchell Shire:

• Clonbinane: March 20 & 26 (2pm-6pm)

• Wandong: March 22 & 29 (9am-1pm)

• Kilmore: March 24 (2pm-6pm) & April 1 (11am-2pm)

• Broadford: April 9 (2pm-6pm)

• Seymour Alternative Farming Expo: April 4-7

Full details including venues can be found on our website www.southerncrossgoldcommunity.com.au.

About Southern Cross Gold Consolidated Ltd.

Southern Cross Gold Consolidated Ltd. (TSXV:SXGC)(ASX:SX2) controls the Sunday Creek Gold-Antimony Project located 60 kilometres north of Melbourne, Australia. Sunday Creek has emerged as one of the Western world's most significant gold and antimony discoveries, with exceptional drilling results including 60 intersections exceeding 100 g/t AuEq x m from just 73.3 km of drilling. The mineralization follows a "Golden Ladder" structure over 12 km of strike length, with confirmed continuity from surface to 1,100 m depth.

Sunday Creek's strategic value is enhanced by its dual-metal profile, with antimony contributing 20% of the in-situ value alongside gold. This has gained increased significance following China's export restrictions on antimony, a critical metal for defense and semiconductor applications. Southern Cross' inclusion in the US Defense Industrial Base Consortium (DIBC) and Australia's AUKUS-related legislative changes position it as a potential key Western antimony supplier. Importantly, Sunday Creek can be developed primarily based on gold economics, which reduces antimony-related risks while maintaining strategic supply potential.

Technical fundamentals further strengthen the investment case, with preliminary metallurgical work showing non-refractory mineralization suitable for conventional processing and gold recoveries of 93-98% through gravity and flotation.

With A$18M in cash, over 1,000 Ha of strategic freehold land ownership, and a 60 km drill program planned through Q3 2025, SXGC is well-positioned to advance this globally significant gold-antimony discovery in a tier-one jurisdiction.

- Ends -

This announcement has been approved for release by the Board of Southern Cross Gold Consolidated Ltd.

For further information, please contact:

Mariana Bermudez - Corporate Secretary (Canada)
mbermudez@chasemgt.com or +1 604 685 9316
Executive Office: 1305 - 1090 West Georgia Street Vancouver, BC, V6E 3V7, Canada

Nicholas Mead - Corporate Development
info@southerncrossgold.com or +61 415 153 122

Justin Mouchacca - Company Secretary (Australia)
jm@southerncrossgold.com.au or +61 3 8630 3321
Subsidiary Office: Level 21, 459 Collins Street, Melbourne, VIC, 3000, Australia

Forward-Looking Statement

This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. All statements other than statements of present or historical fact are forward-looking statements including without limitation applicable court, regulatory authorities and applicable stock exchanges. Forward-looking statements include words or expressions such as "proposed", "will", "subject to", "near future", "in the event", "would", "expect", "prepared to" and other similar words or expressions. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward-looking statements include general business, economic, competitive, political, social uncertainties; the state of capital markets, unforeseen events, developments, or factors causing any of the expectations, assumptions, and other factors ultimately being inaccurate or irrelevant; and other risks described in SXGC's documents filed with Canadian or Australian securities regulatory authorities (under code SX2). You can find further information with respect to these and other risks in filings made by SXGC with the securities regulatory authorities in Canada or Australia (under code SX2), as applicable, and available for SXGC in Canada at www.sedarplus.ca or in Australia at www.asx.com.auunder code SX2. Documents are also available at www.southerncrossgold.com We disclaim any obligation to update or revise these forward-looking statements, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) or the Australian Securities Exchange accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Southern Cross Gold Consolidated Ltd.

View the original press release on ACCESS Newswire

FAQ

When will Southern Cross Gold (MWSNF) begin construction of the Sunday Creek exploration tunnel?

Construction is expected to begin in 2026, pending permit approval, and will take 6-12 months to complete.

What are the dimensions of MWSNF's planned Sunday Creek exploration tunnel?

The tunnel will be approximately 150 meters deep and 600 meters long.

When will MWSNF submit the formal application for the Sunday Creek tunnel?

The company plans to submit the formal application to the Victorian Resources regulator in Q3 2025.

How will the MWSNF underground tunnel impact local drilling operations?

The tunnel will enable 24/7 underground drilling operations with reduced noise and light emissions compared to surface drilling.