Southern Cross cheers Aussie critical minerals reserve

Executive Summary

• Southern Cross Gold Consolidated Ltd. welcomes the Australian government's new A$1.2 billion Critical Minerals Strategic Reserve, which identifies antimony as a priority mineral alongside gallium and rare-earth elements.
• The company highlights its Sunday Creek project in Victoria, Australia, as a key asset capable of supporting domestic antimony supply chains, noting it is one of the most significant undeveloped gold-antimony deposits in the Western world.
• The release details significant operational progress, including the approval of an exploration decline by the Victorian government and the commencement of site establishment for a major pre-development drilling program.

Key Details

• Government Initiative: The A$1.2 billion Critical Minerals Strategic Reserve was announced on Jan. 12, 2026, by Treasurer Jim Chalmers, Resources Minister Madeleine King, and Trade Minister Don Farrell.
• Reserve Focus: Initial focus on antimony, gallium, and rare-earth elements for defense, clean energy, and advanced manufacturing. Includes A$185 million for physical stockpiling and funding for offtake agreements.
• Strategic Context: Aligns with the US-Australia A$13 billion critical minerals partnership and AUKUS supply chain security. Aims to reduce reliance on China and Russia, which control 80% of global mined and processed antimony.
• Project Location & Jurisdiction: Sunday Creek is located 60 km north of Melbourne, Victoria. Victoria is Australia's only current antimony producer and has a critical minerals endowment estimated at A$200 billion.
• Regulatory Approval: In November 2025, Resources Victoria approved the company's work plan for an exploration decline at Sunday Creek, enabling underground access.
• Drilling Program Expansion: Site establishment is underway to expand operations to 22 drill rigs (10 surface, 12 underground), creating Australia's largest pre-development drilling program.
• Drilling Results:
  • 73 drill intersections exceeding 100 grams per tonne gold (peak 3,511 g/t).
  • 90 intersections exceeding 10 per cent antimony (peak 47.5 per cent).
  • Total of 107,415 meters of drilling completed.
• Metallurgy: Proven metallurgy shows 92% to 96% gold recovery with successful selective flotation producing high-grade, low-arsenic antimony-gold concentrate suitable for Western smelters.
• Gold Equivalence Formula: AuEq = Au (g/t) + 2.39 multiplied by Sb (per cent), based on Costerfield's 2024 production costs and metal prices ($2,500/oz Au, $19,000/tonne Sb).

Notable Quotes

• Michael Hudson, President and CEO: "We strongly support the Australian government's strategic vision in establishing this critical minerals reserve. This is exactly the kind of bold policy action needed to secure Western supply chains against Chinese dominance."
• Michael Hudson, President and CEO: "Sunday Creek is located just 60 km from Melbourne in a Tier 1 jurisdiction with world-class infrastructure. We have an exceptional high-grade deposit, proven metallurgy, approved underground access and strong government support at both state and federal levels."