- Mawson Gold’s (TSXV:MAW) subsidiary, Southern Cross Gold (ASX:SXG), will acquire the remaining 30 per cent interest in the Redcastle project
- Southern Cross signed an agreement with Nagambie Resources Ltd. valued at roughly C$229,000, which marks a significant step for Southern Cross in consolidating its holdings in this historically rich goldfield
- The Redcastle gold-antimony Joint Venture, approximately 120 km north of Melbourne, is renowned for its high-grade gold production dating back to the 1850s
- Mawson Gold stock opened trading at C$1.09 per share
Mawson Gold’s (TSXV:MAW) subsidiary, Southern Cross Gold (ASX:SXG), will acquire the remaining 30 per cent interest in the Redcastle project.
Southern Cross signed an agreement with Nagambie Resources Ltd. valued at roughly C$229,000, which marks a significant step for Southern Cross in consolidating its holdings in this historically rich goldfield.
The Redcastle gold-antimony joint venture, located approximately 120 km north of Melbourne, Australia, is renowned for its high-grade gold production dating back to the 1850s. With 17 kilometres of undrilled reef systems still to be explored, the project holds substantial potential for future discoveries. This acquisition not only provides Southern Cross with full ownership and control of the Redcastle project but also eliminates any remaining obligations related to royalty payments.
“The acquisition consolidates the ground holding for Southern Cross at Redcastle around high-grade drill results at Southern Cross’ 100 per cent Laura prospect that demonstrated grades up to 704 g/t gold (Au) and 24.7 per cent antimony (Sb), over thin and targetable structures within a core area where historic mines produced 20,583 oz at 254.6 g/t Au over 2 km strike length, down to a maximum depth of 125 metres during 1859 to 1865,” Mawson’s interim CEO and executive chairman, Michael Hudson, said in a news release. “Southern Cross’ strategic focus remains firmly down the road at the Sunday Creek gold-antimony project, where it has five drill rigs operating (going to six in late November). With consolidated ownership, the next steps at Redcastle are to repeat the Sunday Creek strategy to drill to depth beyond high-grade drill holes and old workings, into the 17 km of untested reef systems at Redcastle.”
Mawson Gold holds a 48.7 per cent stake in Southern Cross, amounting to C$287.6 million based on Southern Cross’ closing price on Thursday.
Hudson further noted that Southern Cross’ strategic focus remains on the Sunday Creek project, where the company operates five drill rigs, with plans to expand to six by late November. The next steps at Redcastle will involve drilling deeper into the untested reef systems, leveraging the successful strategies employed at Sunday Creek.
The acquisition is subject to several conditions, including ensuring that the tenements are free from encumbrances and that no adverse changes occur prior to completion. Once finalized, Southern Cross will gain complete control over all mining information related to the tenements, paving the way for future exploration and development.
As Southern Cross moves forward with this acquisition, the company aims to capitalize on the rich history and potential of the Redcastle gold-antimony project, reinforcing its position in Victoria’s goldfields.
Southern Cross Gold owns or controls three high-grade, historic epizonal goldfields in Victoria, Australia, including Sunday Creek.
Mawson Gold has a more than 20-year track record of discovering and developing long-life, sustainable mineral resources in the Nordics and Australia.
Mawson Gold stock (TSXV:MAW) opened trading at C$1.09 per share.
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(Top photo: Southern Cross Gold)