Perth, April 8, 2009 AEST (ABN Newswire) - Southern Cross Goldfields Ltd (ASX:SXG) is pleased to announce that ongoing field studies, compilation and interpretation of all previous exploration data has highlighted over 100 high priority drill targets, most with potential for large, stand-alone, high margin gold deposits.
Potential for nickel sulphides, copper-lead-zinc and uranium mineralisation has also been identified.
These targets have been ranked according to priority as shown on Figures 1-4 in the linked document below. A selection of the highest priority gold targets is presented as Annexure 1.
This is an outstanding outcome and a solid endorsement of SXG's tenure as one of the dominant land-holders in the Central Yilgarn Gold and Nickel Province. SXG continues to deliver on its commitment to effective, focussed exploration in this highly prospective area.
In order to fund ongoing exploration of these high priority targets, SXG is currently looking at early production options.
Production Strategy
In the year since listing, the SXG Strategy has been to:
1. Complete the Prospectus-nominated drill programs, to rank the projects' production potential and having completed this exercise, SXG has been focusing on field assessments with compilation of public domain data.
2. From these targeting studies, the 100 drill targets have now been generated, and potential production quantified.
3. In terms of the Company's on-going funding, initial drill assessment will be focused on potential early cash flow, short lead-time, low capex gold projects.
Initial focus will be on:
1. Colreavy, 400m long EM anomaly associated with gossan, up to 2.99g/t Au, northern end of a 400m gold soil anomaly associated with the old Mistletoe gold workings, EM anomaly is both a gold and nickel sulphide target.
2. Battler, JORC resource 401,000t @ 2g/t Au, follow up SXG RC drill-hole below previous drilling of 21m @ 4.15g/t Au, quantify high grade zone for production Pre-Feasibility Study.
3. Dulcie, based on previous drilling, soil geochemistry, and old pits, 2km strike of gold-mineralised laterite, define resource for SXG-operated heap leach Pre-Feasibility Study.
Drilling will commence during the June 2009 Quarter at Colreavy.
Link to full document:
http://www.abnnewswire.net/media/en/docs/60452-ASX-SXG-442960.pdf
Contact
Antony Truelove
Managing Director
Telephone: +61-8-9215-7600
Email: tonyt@scross.com.au
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