Been doing some research into this one on the weekend john435 and I like what I have read. This is from this morning's DT thread.
Southern Cross Goldfields Ltd: SXG SXG already has significant gold resources (436,000 ounces) defined at its portfolio of projects located in the Southern Cross / Marvel Loch Area of WA. The company has an EV of about $20 per ounce so there appears to be plenty of upside in the near future. Recent infill drilling at Dolly Pot and Dugite came up with some great mineralization including 25m @ 3.3g/t Au from 23m and 11m @ 4.6g/t Au from 4m (an updated resource estimate is awaited). With grades like these and being so close to the surface, the company expects production costs to be in the range of $750-$800 per ounce. The company currently has JORC defined resources of 436K ounces of gold and is planning a feasibility study (to be completed by mid 2011) to evaluate the development of a 400,000 tonnes per annum processing facility at Marda which would produce around 25,000 ounces per year from mid 2012. News Due: Updated mineral resource estimates for the Dolly Pot and Dugite deposits. Drilling results from the Golden Orb deposit which currently contains 71,000oz of gold. Price Target: There is resistance at 8 cents and 8.3 cents however the stock has a history of price spikes with three spike above 10 cents since early February so higher prices are possible on good news. Disclosure: No Stock Held
SXG Price at posting:
6.6¢ Sentiment: Buy Disclosure: Not Held
