SXG 1.99% $2.96 southern cross gold ltd

First results from the Marda Gold Project drilling programme...

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    First results from the Marda Gold Project drilling programme have been received and confirm significant open ended gold mineralisation at the Andromeda prospect. This significantly improves the potential for additional gold mineralisation throughout the 10km strike of the largely untested host shear zone.
    Significant assay results include (4m composites samples):

    8m @ 4.1g/t Au from 84m including 4m @ 7.2g/t Au from 88m
    and 4m @ 2.3g/t Au from 96m (ADRC002)

    24m @ 1.4g/t Au from 56m including 4m @ 3.6g/t Au from 64m (ADRC001)
    Results have been received from 3 drill-holes at the Andromeda prospect and 1½ drill-holes at the Jackson prospect.
    The sampling to date has been as 4m composite samples, except in isolated areas where the site geologist noted strong alteration or sulphides. One metre riffle split samples will be assayed for all 4m composite intervals which return significant gold assays, as well as all internal “waste” intervals.

    Results from the Andromeda prospect are highly encouraging, with assay results from two of the three holes received to date indicating significant gold mineralisation within multiple parallel zones. Results from two additional drill-holes into this prospect are awaited. The mineralisation identified to date is open at depth and along strike to both the north and south.
    The locations of the recent drill-holes at Andromeda are shown on Figure 1. This figure shows the RAB drilling target and associated soil geochemical anomaly. It can be seen that the anomaly is restricted to the sand/laterite zone which is essentially a zone of lateritic gravel with a thin sand veneer and is interpreted as a remnant zone of laterite. The underlying gold mineralisation has been dispersed in this remnant laterite (typical for Yilgarn Craton lateritic gold deposits) and thus the soil samples within this zone are an effective sample medium. The highest soil assay is 1,380 parts per billion gold (equivalent to 1.38g/t Au), which confirms a potentially significant mineralisation system.
    The hardpan unit adjacent to the sand/laterite unit is, by contrast, very low in gold. This unit is interpreted as being equivalent to the “Wiluna Hardpan”, a widespread unit in the northern part of the Yilgarn Craton which is generally very low in contained gold and tends to mask any underlying gold mineralisation. Thus the previous soil sampling and RAB drilling, which has been followed up by the current RC drilling, has focussed on this area simply because of the presence of a small window of laterite, and is now interpreted to be open along strike to both the north and south. A sub-parallel soil anomaly approximately 150m to the west also requires RAB drill testing.
    The low order mineralisation encountered in the earlier RAB drilling has been shown to improve in tenor at depth and to consist of multiple (at least four) zones of sub-parallel gold mineralisation associated with a broad shear zone (Figure 2). The results received to date are from the northernmost line tested and show that mineralisation is open to the north. There is no other drilling to the north, but an untested soil anomaly is located approximately 3km along strike to the north. Soil and RAB anomalies also occur along strike to the south suggesting that the shear zone is intermittently mineralised over at least 10km strike and that RAB drilling will be required to test beneath the barren hardpan cap-rock.
    These drill results greatly enhance the prospectivity of the Clampton-Sandplain area in general.
 
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