Southern Cross Gold (ASX:SXG) has received approval of its Work Plan for the exploration tunnel at its Sunday Creek Gold antimony project in Victoria, Australia.
The company said in an announcement that the exploration tunnel will provide underground access to high-grade mineralisation at Sunday Creek.
In turn, the access will allow the company to perform detailed geological mapping and sampling of mineralized structures and execute precision underground drilling to expand and define the resource along strike and at depth.
It will also lead the way in the collection of geotechnical data essential for future mine design and in the assessment of various mining methods and equipment selection for potential future operations.
“This approval is a pivotal milestone in Sunday Creek’s evolution from exploration discovery to future potential mine development,” said Southern Cross Gold President and CEO Michael Hudson.
“We are assembling the pieces needed for a commercially viable operation: an exceptional high-grade discovery with demonstrated depth continuity, strategic freehold land ownership, proven metallurgy, and now approval for underground access.”
Hudson added that there are currently 10 operational surface drill rigs as of writing, with the company planning an additional 12 drill rigs underground after the decline completion for 22 rigs in total, making it the largest pre-development drill program in Australia.
Meanwhile, the Minerals Council of Australia said that this approval is a major step forward in Victoria’s status as the sole Australian source of antimony.
Growing interest in antimony has been evident recently, as the critical mineral’s immense strategic importance for defence, as well as for solar panels, batteries, semiconductors and flame retardants.
Recently, the United States Department of the Interior has also designated antimony as a critical mineral.
“The approval of the exploration tunnel at Sunday Creek, along with October’s approval of the Catalyst/Hancock Prospecting joint venture Boyd’s Dam gold project, sends a clear message that Victoria is open for business in advanced minerals exploration approvals for deeper mineral deposits,” MCA Executive Director for Victoria James Sorahan wrote in a statement.
“To support Victoria’s emerging critical minerals and existing gold sectors, exploration spending needs to increase after a recent decline from record high levels,” he added.
Southern Cross Gold said that following the approval, site establishment activities are scheduled to commence within the next month.
The company is also progressing secondary approvals under the Water Act and Environment Protection Act and other relevant agencies, before underground work commences.
Underground construction is projected to take six to nine months.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
