SXG - Southern Cross Gold

[Sean K]

The headline looks extraordinary again, but the thing that's always concerned me is the extremely high grades over narrow widths which push up the overall numbers. Taking it to M&I or establishing a reserve is going to take a crap load of drilling. The consistency is an issue for mining it.

The rest of the market doesn't seem to care though.

 

[Sean K]

Another extraordinary intersection on the surface of it, but once again bolstered by very thin bonanza hits, like 16cm @ 3,330 g/t.

The problem is that this is 776m deep with very low grades around it.

Same with the hits a little higher up.

I suppose if they keep drilling they'll be able to link it together to increase confidence in the system. Maybe.

 

[Sean K]

This was smashed yesterday on that announcement, but lots of goldies are being smashed with the general market as well.