looking at early gold production options

Good detailed announcement today!!

Exploration data has highlighted over 100 high priority drill targets, most with the potential for large, stand alone, high margin gold deposits.

Southern Cross Goldfields is currently looking at early production options.

PRODUCTION STRATEGY:

In the year since listing, the SXG Strategy has been to:
1.
Complete the Prospectus-nominated drill programs, to rank the projects’ production potential and having completed this exercise, SXG has been focusing on field assessments with compilation of public domain data.
2.
From these targeting studies, the 100 drill targets have now been generated, and potential production quantified.
3.
In terms of the Company’s on-going funding, initial drill assessment will be focused on potential early cash flow, short lead-time, low capex gold projects.

INITIAL FOCUS WILL BE ON:
1.
Colreavy, 400m long EM anomaly associated with gossan, up to 2.99g/t Au, northern end of a 400m gold soil anomaly associated with the old Mistletoe gold workings, EM anomaly is both a gold and nickel sulphide target.
2.
Battler, JORC resource 401,000t @ 2g/t Au, follow up SXG RC drill-hole below previous drilling of 21m @ 4.15g/t Au, quantify high grade zone for production Pre-Feasibility Study.
3.
Dulcie, based on previous drilling, soil geochemistry, and old pits, 2km strike of gold-mineralised laterite, define resource for SXG-operated heap leach Pre-Feasibility Study.
Drilling will commence during the June 2009 Quarter at Colreavy.

SXG –‘Low Capex Gold Production to fund Exploration for High Margin Company-Makers’Q=1