Southern Cross Gold Infill Drilling Lifts Golden Dyke Grades: 2.7 m @ 178.4 g/t and 6.8 m @ 49.8 g/t Gold

Southern Cross Gold Consolidated Ltd. (SXGC) has released results from five infill drill holes at the Golden Dyke prospect within its 100%-owned Sunday Creek gold-antimony project in Victoria, Australia. The drilling targeted steeply dipping vein sets across an east-west orientation.

One hole, SDDSC236, returned no significant intersections and is described as a southern bounding or structural control hole.

Other results included:

• SDDSC225: 2.7 m @ 178.6 g/t AuEq (178.4 g/t Au, 0.1% Sb) from 662.3 m; also 3.9 m @ 32.9 g/t AuEq from 793.8 m (incl. 0.4 m @ 106.0 and 0.3 m @ 335.0 g/t Au). This is described as the 13th best composite at Sunday Creek to date and the deepest hit on the GD40 vein set, with nothing drilled beneath.
• SDDSC218 (22 vein sets): 6.8 m @ 50.1 g/t AuEq (49.8 g/t Au, 0.1% Sb) from 537.9 m, ~380 m below surface; also 13.0 m @ 6.8 g/t AuEq from 477.8 m, 2.2 m @ 49.0 g/t AuEq from 495.9 m, 9.7 m @ 9.5 g/t AuEq from 646.1 m, 6.0 m @ 3.0 g/t AuEq from 503.3 m.
• SDDSC221: 1.0 m @ 198.9 g/t AuEq from 680.0 m, expressly built from two adjacent assays (334.0 g/t Au over 0.11 m and 447.0 g/t Au over 0.36 m); also 2.4 m @ 8.2 g/t AuEq from 610.4 m and 5.1 m @ 2.6 g/t AuEq from 457.0 m.
• SDDSC229: 13.2 m @ 7.9 g/t AuEq from 489.0 m; 8.6 m @ 8.2 g/t AuEq from 523.1 m.

Company-wide totals show 288 holes totaling 140.8 km drilled since late 2020. This includes 106 composites greater than 100 g/t Au (using a 1 m @ 5 g/t AuEq cut) and 115 composites greater than 10% Sb. There are 72 holes pending, 12 rigs active, and a 200,000 m programme scheduled through Q1 2027.

The company states that the infill drilling is lifting grades and sharpening high-grade cores, not diluting them. Four new vein sets outside the current Exploration Target are pushing the Golden Dyke 30-50 m west toward Christina.

Southern Cross Gold Consolidated Ltd. (SXGC) has released drilling results that confirm the continuity of the Golden Dyke vein sets across a 300 m x 500 m block. The data, characterized by tighter spacing and named tie-points, shows the vein sets are continuous at 10-30 m spacing. The model successfully predicts the location of high-grade cores, and the grade does not collapse as the spacing tightens. This continuity addresses the risk of infill dilution, which is a critical factor on the path to a maiden resource expected in Q1 CY2027.

The Exploration Target set on 4 August 2026 remains untouched. There is no new prospect, new depth horizon, new intrusive or structural centre, resource, or economics. The 30-50 m westward extension is marginal against a 1,550 m drilled strike and a 12 km interpreted corridor.

Southern Cross Gold Consolidated Ltd. is a pre-development explorer with no revenue. The company holds C$119.1M in cash with no debt. It has stated a burn of approximately C$25M per quarter for two quarters, reverting to approximately C$10M thereafter. Prior-period context for the period ending 31 May 2026 includes a net loss of C$5.5M, interest income of C$4.67M, capex of C$12.6M, and investing cash outflow of C$46.5M. At C$11.00, the equity trades at roughly 11 times the book value of C$0.99 per share.

The expectation anchor is the 4 August 2026 Exploration Target update, which outlined 10.4-11.9 Mt @ 8.9-12.1 g/t AuEq, representing 3.0-4.6 moz AuEq across five prospects over 1,500 m. The stock closed at C$9.00 on 31 July and C$10.69 on 4 August, then rose to C$12.98 by 25 August and C$13.18 on 22 September. The stock is up approximately 66% from its 52-week low of C$6.21 and approximately 22% from the pre-anchor print. The market expectation is to confirm approximately 9-12 g/t AuEq grade continuity across the target footprint and maintain scale conversion.

The new best intercept, SDDSC225, recorded 482 g·m. This is at or modestly above the best prior Golden Dyke composite, SDDSC188, which recorded approximately 406 g·m, though SDDSC225 achieved this over a much shorter interval with higher grade. The broad infill zones returned 6.8-8.2 g/t AuEq, which is at or slightly below the lower bound of the announced target grade range. No hole in this release represents a negative delta against the anchor, with no failed step-outs or assay downgrades.

The market has already priced in the target expansion and the drilling programme. This release keeps the story intact and modestly de-risks resource conversion but does not change the perceived scale, grade, or odds enough to alter the valuation of the company. The stock has pulled back approximately 16% from its September high into this release.

Southern Cross Gold Consolidated Ltd (TSX: SXGC, ASX: SX2, OTCQX: SXGCF, FSE: MV3) reported 269,346,976 shares outstanding as of its FY-2026 statements, a figure consistent with the 269.4 million shares cited in its August 2026 presentation. The company holds C$119.1 million in cash with no debt as of 31 May 2026. Management has guided for a quarterly cash burn of approximately C$25 million for the next two quarters, reducing to roughly C$10 million per quarter thereafter.

The company’s primary asset is the Sunday Creek project, located 60 km north of Melbourne, Victoria. The site comprises 16,900 hectares of granted exploration tenements and 2,296 hectares of strategic freehold land, situated on the same epizonal gold-antimony corridor as the Fosterville and Costerfield mines. In September 2026, Resources Victoria accepted the mining licence application MIN009040, covering 30.7 hectares at the historic Golden Dyke workings, as complete.

Southern Cross also holds the Redcastle gold-antimony project, located approximately 64 km NNW along strike from Costerfield. The project features 14 historic reefs across a 900-meter cross-strike corridor, with the first deep drill holes reported in July 2026.

Currently in the pre-development stage, the company has not yet defined a Mineral Resource, Reserve, or Preliminary Economic Assessment (PEA). An Exploration Target released on 4 August 2026, presented as conceptual under NI 43-101 and JORC 2012 standards, estimates 10.4 to 11.9 million tonnes grading 8.9 to 12.1 g/t AuEq. This equates to 3.0 to 4.6 million ounces of AuEq and 63,000 to 95,000 tonnes of antimony. The target spans the Christina, Golden Dyke, Rising Sun, Apollo, and Apollo East areas over approximately 1,500 meters of a 12-kilometer interpreted corridor. Only about 650 meters of the drilled strike has been intensively tested to date.

The company’s drilling programme aims for 200,000 meters through the first quarter of 2027. Approximately 140.8 kilometers across 288 holes have been reported to date, with 12 rigs currently active. An exploration decline is expected to reach approximately 1,100 meters by December 2026. The company targets a maiden Inferred Mineral Resource Estimate (MRE) for the first quarter of calendar year 2027 and a PEA for the second quarter of calendar year 2027.

Preliminary metallurgical results indicate non-refractory native gold, which accounts for 82-84% of the total gold content. A gravity-flotation flowsheet is projected to achieve 92-96% overall gold recovery across three products and 83-93% antimony recovery. The process produces a low-arsenic antimony-gold concentrate grading 48-53% Sb.

Southern Cross Gold Consolidated Ltd was included in the GDXJ, FTSE Canada All Cap, and S&P/TSX Composite indices in June 2026. Strategic and institutional holders, including Lassonde, Morcombe, Sokoloff, Franklin Templeton, Konwave, BMO AM, CBUS, Schroders, and Capital, collectively hold approximately 45% of shares based on presentation figures.

The company’s leadership includes President and CEO Michael Hudson, COO Ryan Austerberry (ex-Alkane), CFO Michael Frame (ex-Costerfield), and Non-Executive Director Ian Smith (ex-Newcrest CEO). Ken Bush serves as Head of Exploration and Qualified Person.