For a junior, SXG's quarterly is a worthy read in full.
Several projects consist of gold bearing laterite which were very successfully mined and treated using heap leaching techniques during the 1980's and 1990's.
Heap leaching is a proven, low cost method of treating gold bearing laterite. It entails digging out the laterite (or scraping it up if it is all on the surface), putting it in a big heap on a plastic pad and leaching a cyanide solution through it via a sprinkler system to remove the gold. The gold is then extracted from the recovered solution via activated carbon and an electrowinning cell. Depending on metallurgical characteristics, some crushing prior to stacking may enhance gold recoveries. The method is generally low cost due to the following characteristics:
*Little or no overburden resulting in an extremely low stripping ratio.
*Very low capital costs compared to a conventional CIP gold mill.
*Low operating costs due to the simplicity of the operation.
*Short lead time due to limited construction requirements.
*Resource drilling can be used for grade control.
Because of the above factors, this style of operation can be profitable at much lower grades than other forms of gold mineralisation. However, very little laterite gold mining is currently undertaken, as most gold bearing laterites were mined and processed during the 1980s and 1990s due to their favourable economics. Examples from this time include the very large Boddington mine and many smaller operations such as Bullabulling and the Thames Mining operations north of Dulcie. SXG is fortunate to have one of the few remaining areas with gold bearing laterite. Potential bore-fields, a critical aspect of any heap leach operation, are available within SXG tenure.
---------------------------------------------------------- SXG is committed to delivering on its goal of discovering a “company maker” ore-body and hence still intends rapidly progressing its highest priority exploration targets and early production options.
*A major review of all available previous exploration data was completed during the quarter. This identified 109 gold, 26 nickel sulphide, 12 copper-lead-zinc and 2 uranium targets, each with potential for a large stand-alone ore-body. The review highlighted that the northern part of the Bullfinch North project area has a much lower drill density than was previously assumed.
*Southern Cross Goldfields Ltd’s (SXG’s) strategy of advancing toward early production from its 0.4 million ounce resource base was vigorously pursued during the quarter with the aim of producing early cash flow to fund ongoing exploration designed to discover large, stand-alone “company maker” gold and/or nickel sulphide ore-bodies.
*Potential for early production has been identified at the Dulcie gold laterite prospect. Sampling of this laterite has returned up to 2.08g/t Au, with two well defined zones averaging between 0.8 and 0.9g/t Au. The laterite is up to 5m thick, with only the top 1-2m being available for sampling. This sampling was over a 300m long zone within an interpreted plus 3km long system.
*A review of the Battler deposit has also reinforced potential for early production and resource extensions. Discussions with existing or planned infrastructure owners have been initiated. Excellent exploration potential has been identified within an untested 700m long zone between the northern most drill traverse at Battler and an old drill traverse just north of Southern Cross Goldfields Ltd’s (SXG’s) tenure which returned an intercept of 6m @ 2.39g/t Au from 71m.
SXG Price at posting:
8.5¢ Sentiment: Buy Disclosure: Held
