Southern Cross Gold Consolidated

Take it away, Nick.

Thanks, Alex. I’ve just plugged that in, so hopefully that’ll come up on the screen fairly soon. Thanks Alex, and thanks for your support. You’ve got a good price target but hopefully after this you’d be able to jack it up a little bit more.

So okay, Sunday Creek. So we are a gold antimony explorer in the state of Victoria in Australia. We are dual-listed, so I’ve got one and then two pages of disclaimers. Thanks for reading them.

Okay, Southern Cross at a glance. We are, as I mentioned, TSX primary listing, ASX on the secondary listing. 270 million shares outstanding. 158 million of them are represented as CDIs. Liquidity is higher in Canada. That’s mainly because we are on a number of indices through that Canadian listing. Today, we have slightly under $118. That $118 million of cash was in May. We’ve been expending about $4 to $5 million per month, so we’re sitting at around about $110 million in cash.

Now, one of the secrets to our success is our shareholder base. We have a cornerstone group of ultra-high net worths who are represented here by Pierre Lassonde, that many of you will obviously know about. Darren Morcombe, who is an associate of Pierre. And then also Kirill Sokoloff, who runs a research company called 13D Research, that many of you may or may not know of. Together they have a bit over 20% of the company. And we do know that through the TSX, where we don’t get full visibility on the shareholders, we probably have another 10% to 15% of shareholders through the relationship of Kirill Sokoloff as clients of his firm. And then in addition to them, we have a good representation of some of the world’s best institutional funds. So more than 50% in a very stable and supportive shareholder base. And again, not to forget our dear friends at Shaw and Partners, but we are supported by many of the global research houses in both Canada and Australia.

So why am I here to talk to you about Southern Cross and our Sunday Creek project? Well, we do believe that we’ve got one of the best new gold discoveries in the market today. It’s a multimillion ounce high-grade deposit in Victoria. We’ve only explored about 10% of the property so far. It’s a free gold, non-refractory deposit, which I’ll go through a bit further on, but fairly easy processing. We do have antimony as a co-product. And that does provide a strategic nature to the deposit. Being a high-grade deposit, we’ve been always saying that the gold will pay for it, but the antimony will permit it, as a strategic critical mineral where Victoria, not only us, but Victoria stands at a very important part of supplying future antimony into the Western market. And then finally, with that shareholder base, we are committed to building this project ourselves. We see the value can be created by turning one of the best new discoveries in the market into one of the best new gold mines in the market in the near future.

So where are we located? Only 60 kilometers away from Melbourne, capital city of Victoria, which is situated down the bottom of the map here. And quite literally, it’s about 60Ks up the road. One hour’s drive from the CBD of Melbourne. Unfortunately, I don’t have a drone shot that we normally have to demonstrate that even though we are 60 kilometers away from a city of five million people, we are in an area which is quite isolated. Historic farmlands, forestry. So we are not butting up against communities, which gives us flexibility in where we can place future infrastructure for the mine. As I mentioned, 90% is still to be drilled, and that is of a 11-kilometer trend. Again, I’ll show you where that is. The last point is that there’s no commercial royalties. We may have Pierre Lassonde as a shareholder, but we’re not selling a royalty. It’s better to buy them than to sell them. So the only royalty on this project will be the state royalty which sits at a 2.75% level.

So what do we actually have in the ground at the moment? Well, we don’t have a resource yet. We are working through that. We have done 140 kilometers of drilling so far. The drill density is not yet at a point where we can put out a resource. But we have been upgrading for the last three years. Once a year, we’ve been putting out an exploration target. And so this is the number that we put out only about seven weeks ago in early August. So 3 million to 4.6 million ounces at 8.9 to 12.1 grams per tonne gold equivalent. Now, the antimony sits at 20% in situ value. So therefore 20% of that is antimony. But if we wanna just worry about the gold itself, at the upper level, we’re sitting at 10 grams.

But also in terms of the strategic nature of our antimony inventory, as an inventory today, we are sitting at about 95,000 tonnes of inventory in the ground. We have been speaking to a number of people in the last week here and at Beaver Creek. And that number, according to certain people, is one of the largest amounts of antimony in the Western world. At a future production rate of, say, 5,000 tonnes, which we’re looking to do, that’s a 20 year more or less surplus supply of antimony, which as we go forward to talk about supply agreements with various actors in the world, in a stable jurisdiction, 20 years is a value-adding benefit to this particular project.

Across the width of our mining, that’s basically one and a half kilometers across the strike, and then down here is 1.2 kilometers down to the deepest intersection within the exploration target. We have five different areas, Christina, Golden Dyke, Rising Sun, Apollo, Apollo East. And as we continue to drill out, it’s looking likely that a number of these distinct areas can connect. And that will be shown as we continue our drill out going forward.

And just a little history of the development of that mineralization. We are in a historic gold mining district of Victoria, and this area here, which you can see fairly easily, that’s the old Golden Dyke mine. That was created in 1880s and actually was mining during the First World War, and was actually supplying antimony to the British war effort in the First World War. That went down to 180 meters, which has been, up until we got there, the deepest extent of drilling or production at the area. We came in in 2020, and therefore, what you’ll notice is that the legend is anything that’s a pink dot is greater than 100 grams. So soon after we started drilling, going down deep, we started finding a few of these 100 gram intercepts. And then basically what we call our discovery hole was hole 50 on the project, which came in in November 2022. That’s when our major shareholders Darren Moore, Kim Pierre Lassonde, and Kiril started to invest in our company.

And then in January ’24, March ’25, August ’26, were the three different exploration targets that we’ve put out. And as you can see, the density of the drilling has been concentrating at depth, which is the secret to Victorian epizoinal gold deposits, such as Fosterville and Costafield. The deeper you go, often you’ll find the higher grade gold. The antimony does fall away at around about 400 meters, more or less. So in the upper level, we have gold antimony, and then below is more the high-grade gold.

And again, just to put things into context, this is the same scale between us and the Fosterville mine, 111 kilometers up the road according to Google Maps. Everything that I’ve spoken to you about at the moment has been in this white box, where we’ve done all our drilling. As many of you will know, the Swan Zone is around about 1,600 odd meters. Fosterville, or Agnico, has been drilling down to 2,000 meters. Same gold event between us and Fosterville. We have continuous veins that stretch to depth. And so what we have done recently has been to put out a release of a drill hole that went down to 1,500 meters. We found the structure of the deposit, and we have been drilling another hole which ended at 1,800 meters. We’re processing that to our core at the moment, and we will be releasing that to the market in due course.

Another representation of the upside that we have at the property is this trend. The host rock is a diaritic breccia, which is represented by the green, and that extends from southwest to northeast to the tune of about 12 kilometers. The drilling that we’ve done, and which I’ve just shown you before, rests in that little area there, which is about a kilometer and a half long. But a number of these stars that you can see are historic mines, which we have down in the main drill area as well. I’m not a geologist, so I’m allowed to say this. It’s not rocket science what we’re doing. We are drilling around old historic mines and getting to the gold that the old guys never got to. Further along the trend, historic mines again. Mining in the old days in the same structure as the guys down where we’ve been drilling, chasing the high-grade veins that we’re outcropping. And we have two rigs up and down this trend, to explore the opportunity of further discoveries as time goes by.

Now, I did mention two rigs. I haven’t got to this yet, and in fact, I forgot to update this. We now actually have 12 rigs operating out on surface at the moment, drilling 12 hours a day, seven days a week. We do have a decline, which is under construction. Once that’s completed in December, we’ll add an extra 12. So we’ll have 12 on surface, and then we’ll have 12 underground in January next year. That’s to drill out a maiden resource towards the end of Q1 next year.

But 140 kilometers basically, this number’s slightly old again. With 140 kilometers drilling, about 98 intercepts of greater than 100 grams already found. Newmont told us many years ago that if they can find three in any one body, they’re pretty happy with that. So you can imagine that we’re fairly happy with 98. And not to be outdone, 111 intercepts of greater than 10% antimony. So this is another demonstration of the quality of the Sunday Creek project.

We do own 1,400 hectares of land in and around the mineralization, and that’s where we will be putting in infrastructure for the future mine tailings plant, which will be away from local communities, so we are able to develop into our own property. One of the things that the guys at Fosterville told us many years ago was the best thing we could do would be to go out and buy as much land as we can. And so we’ve taken their advice and got ourselves a sizable land position. It’s freehold land and an ag business. Only about two or three weeks ago, maybe a month ago, we did put on about 50 head of cattle. So we always are open for people to come and look at the core. We might even put on a barbie for you as well whilst you’re there.

So we are working through a budget. We raised $150 million last year. These numbers are slightly old, but are just indicative of the work that we’ve been doing since we raised that money. $60 million of that 150 raised was to do this 200-kilometer drill-out, which is a continuous drill-out. Sunday Creek will always have drilling on it. And so don’t be constrained by just that one particular number. And that is to get that maiden resource by the end of Q1 next year.

Included in the budget was $30 million for the development. Bellevue have developed. We use Pybar. They’ve been doing a great job. Started in June. The lateral extent of the decline is 700 meters. It’ll be about 115 down. Total development about 1.2 kilometers. As of Sunday, we’re 425 meters into that development. And so that is going on time and on budget. We’ll then follow up after a maiden resource with a PEA. We’re Canadian, so we call it PEA as opposed to a scoping study in Australia. But we would also be expecting to have that completed by the middle of next year. And then, as I mentioned, we will never stop drilling at Sunday Creek, so we do have a $20 million budget for those extra rigs going up and down the trend to find the next discovery after what we’ve been developing.

So I did mention that we’ve got a decline under construction at the moment. This is the portal what was constructed about five months ago. We were rolling pastoral hills, a bit of woodland. Now we’re beginning to look like more of a mining site. And so then, if we just go in, this is just an indication of what the decline looks like at the moment. This was probably around about 120 meters, so obviously the face isn’t exactly the same. But as you can see, the sort of work that Pybar’s been doing for the decline at the site so far.

Now, up until a couple of years ago, we were a company full of exploration geologists and myself. I’m not technical. But we were beginning to say that we were going to build this opportunity because we were backed by Pierre Lassonde and other shareholders. Well, you wouldn’t believe it if it was a company full of exploration geologists. So what we’ve done in the last 12 to 18 months is gone around to build out the team to build the mine. Two examples of this, Ian Smith, former CEO of Newcrest, came onto the board about six months ago to add that engineering experience to the board. And then importantly, we hired Ryan Osterberry, who was the mine manager of Costa Field prior to us. So the guy that did mine gold and antimony in Victoria is now planning to build the next gold and antimony mine just down the road from where he was.

In addition to both Ryan and Ian, we have Michael Frame, trained at Evolution and then CFO at AIC. Importantly, in terms of processing, we brought on Joe Sepl about five months ago. Last job that he did was to build the Carrapateena plant for BHP in South Australia. He’s now come to build our plant. Victoria, we always have permits, which are not too onerous, but you’ve gotta have your experts. So we’ve brought on Laura, who was a consultant to us, but she’s now our lead permitting manager, and she’s in front of the Victorian government every week. And for some of you who’ve been following us for a while, Kenny Bush has been our head of exploration for the last four years, and he is Mr. Victorian Gold. He’s worked at Fosterville, he’s worked at Costa Field. Whilst he was at Fosterville, he was part of the think tank to understand how Kirkland found the Swan Zone, why they found it, and where they’re gonna find the next one, and Kenny’s found it here at Sunday Creek.

So just, very quickly, Victoria has been extremely supportive and Victoria has been the most active state government in Australia to permit mines by having permitted four mines in, say, the last two years, including Fosterville’s mine extension. Our decline that we have got under construction was permitted in only four months.

Very quickly on metallurgy, we are a free gold deposit, so we’re looking at overall up towards 92%, 96% gold recovery. About 50% of that will be free gold. Then up towards 40% will be a gold antimony concentrate and, after that, will be a sulfide concentrate. We’re working through the processing with Joe on board, and we’re coming up with solutions to get those products into market.

So for the next 12 months, as I keep on saying, “Drill, baby, drill,” all the time. Underground development is proceeding on time and on budget. We will be putting out a resource in the next six or so months, to demonstrate the size and the quality of the asset. Studies are continuing throughout the period. And then the regional exploration is going to be the next step up in terms of the growth of the project going forward.

So finally, one project, six reasons you should own it. The discovery, again, we humbly think is the best gold discovery in the market of recent times. Antimony gives us strategic optionality, helps us with the permitting, get both products into market. Exploration’s upside along the trend. Therefore, the jurisdiction is a tier one jurisdiction globally. We’re fully funded. We’ve got the shareholder base that will continue to fund us, and then we’ve been building out the team as well. So with that, with 14 seconds to go, thank you very much. Alex.

That was great. That’s all we’ve got time for. Thank you very much.