SXG - Southern Cross Gold

[Sean K]

I haven't driven up the road to look at this yet. Anyone in Melbourne interested give me a buzz. I have a nice car, or could go on the back of the Vespa.

New presentation out that has nothing new that I can see.

One thing I have noticed is that I don't think they understand what the Lassonde Curve is.

"increasing project scale" is not really part of the curve. And, if anything, it's post 'discovery' and going into an orphan period unless they discover something else...

Need another hole 50 or punters are just going to prospect elsewhere.

The Lassonde Curve:

 

[Telamelo]

I haven't driven up the road to look at this yet. Anyone in Melbourne interested give me a buzz. I have a nice car, or could go on the back of the Vespa.

New presentation out that has nothing new that I can see.

One thing I have noticed is that I don't think they understand what the Lassonde Curve is.

"increasing project scale" is not really part of the curve. And, if anything, it's post 'discovery' and going into an orphan period unless they discover something else...

Need another hole 50 or punters are just going to prospect elsewhere.

View attachment 156776

The Lassonde Curve:

View attachment 156777

Very good point @Sean K about importance of 'Lassonde Curve' as reasoning (& timing) I got into BC8 (along with excellent high grade gold grades).

 

[Sean K]

More meh...

Great grades, but you could get this panning in the Yarra.

They need to turn the rig around and point it at the same angle as hole 50, down a bit deeper. PhD Geologist Sean knows that.

I'm driving up this week to give them some tips.

I'll bring some pastries, MIchael.

 

[Sean K]

RIU presentation last week. Michael's a good speaker, for a geologist.

He also must have read my criticism of the cartoons they were producing of the deposit structure. Some impressive graphics in this.

 

[Sean K]

This sounds good for antimony, but I think they're ramping this more as a gold project...

 

[Sean K]

Lots of narrow vein sets in this intersection which add up to an excellent result. Close enough to be bulk mined instead of following a vein with a pick and shovel. Apollo is looking like an outstanding load as part of the wider Sunday Creek strike. Still a long way from the excitement of hole 50 under Rising Sun which was quite extraordinary. Getting over 200 ggm over this width is much better than the same over 1m. The red bits in the bottom cartoon is all high grade gold. Still looks like low tonnage high grade operation at the moment.

 

[Sean K]

They've immediately followed up that assay result with a presentation.

The most interesting thing out of this to me is the number of pending drill results across the project, but particularly hole 77A (or might be 77B as indicated in the previous slide?) which looks to be about 75m to the north and down dip of hole 50. Not sure why they haven't drilled directly beneath hole 50 to try and hit the same veins. Would love to know the logic and methodology for this one, but surely it's to test that hole 50 vein sets are continuous.

 

[peter2]

Price keeps slip sliding away. Like a few others, RTR, CHN, WIN.

 

[Sean K]

Price keeps slip sliding away. Like a few others, RTR, CHN, WIN.

Yep. It's all downhill since hole 50. There's definitely a decent blob of gold under Apollo and Rising Sun, but defining the vein sets is going to take a long time. As I've pointed out before, looking at the detailed drill results, there's lots of really high grade veins between very low grade which they present as wider widths of medium grade. I think they're dreaming about a Swan Zone somewhere down there. It might take another hole 50 to turn it around.

 

[Sean K]

A ramp ann out today which just summarises what they're doing which anyone who follows the stock already knows. Just trying to fill the void between drilling results perhaps. Or, they think a lot of people don't understand the deposit.

There's a fair number of assays in the lab, hopefully some of them have gold in them. Sounds like some results are 'imminent'.

 

[Sean K]

The imminent results are out.

Hole 78 looks good on the surface of it. Wide high grade, but once again bolstered by a couple of extremely high grade but thin intersections as per a lot of their holes. The 0.4m @ 123.8g/t and 0.7m @ 162.1g/t make the 11m intersections look much better. But inside the 11m is some much lower grade stuff. See selected assays details below. Not sure how they're going to adequately define this deposit without a hell of a lot more drilling. It would be interesting to know what sort of mining technique they would intend to use to get to the high grade vein sets.

The two holes with visible gold in them (82, 77B) around hole 50 will be very interesting. Looking forward to those results coming out.

 

[Sean K]

This is very good in that it shows this load will go deep, but I'm just not convinced how it's going to go to scale due to the narrow hits. I imagine it will end up being a low tonnage high grade project but how do they mine it? It's going to have to be very selective going deep underground which will be slow and expensive. It could take a couple more years of drilling before they can define these vein sets and understand how long they are in the 'ladder' to even get a very inferred MRE done. Maybe they'll hit another Hole 50 soon but I'm struggling to see how this is going to grow to scale due to the narrow veins and the amount of very low grade and waste surrounding them.

So, I'm out on the sidelines for now.

Which means holes 77B and 82 will be similar to hole 50 and then they hit a 'Swan Zone'. You can count on it.

 

[Sean K]

Timed getting out of this almost to perfection.

 

[Sean K]

This looks pretty amazing on the surface of it and will likely get a lot of people excited.

But, as with all their holes, the overall width and grade is significantly skewed by some very thin bonanza grades. For eg, 0.4m @ 2,679 g/t within a wider intersection of 6.9m @205 g/t, really changes the headline intersection. Still, overall, sounds quite spectacualar on the surface of it.

This hole ran about 37m almost parallel to Hole 50 which was the initial elephant hole so must have hit the same veins.

 

[Sean K]

Opened up 80% but has sold off to only be up 45%. Win some you lose some.

 

[Sean K]

Meh. Looks like they hit some nuggets. I'm not sure how you can say narrow veins extend mineralisation 8km, that's just nuts. Especially when most of the grades are porphyry like. Highlights are 0.2 g/t? Huh?

 

[Sean K]

Crying in my wheaties.

Drilling down and around Hole 50 was a good thing. Who would have thought?

There's a lot of gold in that blue rectangle thing.

 

[Sean K]

I've been wondering what Mawson were going to do with their holding once the escrow was done and dusted. They've said in a few of their announcements that they wanted to release some value in their holdings of SXG because they weren't seeing in MAWs value. I suspect a big chunk of SXG is going to be put into the hands of MAW management. ie, Husdon and co. Going to be a nice pay day.

The lack of information in this announcement is slightly disturbing.

 

[Sean K]

Another headline grabbing announcement. 20m at 62 g/t sounds incredible. It's Swan Zone - like.

But, as I've mentioned before, when you look at the detail these overall widths contain some very narrow, extremely high grade sections which boost up the numbers. I wouldn't say it's being deceptive, but it's important in understanding the type of system this is and how it will be mined eventually.

They are now classifying individual veins which I think it a tactic to alleviate investor suspicion this may be pebbly Bendigo-like. They need to demonstrate this hangs together and is consistent over decent widths and can be eventually defined up to M&I status.

 

[Sean K]

Interesting move from SXG on Friday for no real reason. Low volume though. Around ATHs. Still can't believe I sold out end of Aug a couple of days before that last significant bounce off the monster intersection. Completely misjudged what they were doing and the potential of those holes.