Categories: Precious Metals
Topics: Gold Stocks

Southern Cross Gold (TSX-V: SXGC)(OTC: MWSNF) CEO Michael Hudson on Expanding Apollo to Depth and Along Strike

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of Southern Cross Gold (TSX-V: SXGC)(OTC: MWSNF), Mr. Michael Hudson. Mike, I would ask how you are, but given that you've closed at new all time highs the last several days. One, congrats are in order, but how are you? I'll ask you anyway. How are you doing today?

Michael Hudson: Well, we have a tier one discovery in a tier one jurisdiction at a tier one grade in a bull market in gold. And so, that's the recipe that you don't often get right. And so I'm extremely happy, humble, and pleased.

Gerardo Del Real: Well, listen, a lot of credit to you and the team because you're not resting on those laurels, which is why the company continues to hit new all time highs. You just expanded Apollo to depth and along strike. A hallmark of Sunday Creek has been the continuity and the grade and the widths, right? And the best results on this one, the highlight number was 3.6 meters of 14.7 grams per tonne gold equivalent. It was the deepest east-west oriented hole that's been drilled into Apollo to date. Can you give me a breakdown and overview of everything in the latest release? I should add, because fortune favors the bold and you have an embarrassment of riches here. You also return strong antimony grades, which is going to be critical in moving forward the permitting in a fast track pace, right?

Michael Hudson: Absolutely. So, gold pays for this. Antimony helps permit it. So, we've got the revenue or the in-situ recoverable value is the way to talk about it is 80/20 gold for antimony. So, very fortunate to have that antimony kicker. This is one of the top three Western world antimony inventories, so it's a key part of rebuilding that antimony supply chain, but uniquely it's backed by gold. And that derisks it on pretty much every level financially and against the price variations that we see in these small critical metals markets. And we don't have to take that risk on the price deck that China, who controls the market, has been amazingly intelligent and smart and at building out the supply chain from mine to mainly the midstream processing and then the long tail in their deep industrial base. So, anyhow, that's a sideline to some drill results, but the drill results reported were very strong results.

The deepest east-west hole, which is the way to drill across the main mineralized structures in Apollo, which is the eastern side of the deposit. It's actually not the best part of the system. The best part of the system is Rising Sun and fast becoming Golden Dyke as well, which are about 500 meters to the west, but not withstanding that we had 3.6 meters at something like 14-odd grams equivalent and antimony grades up to tens of percent antimony over thinner widths. And so, it's the building blocks of... It was a press release that is essentially building a project piece by piece. And we had eight holes from Apollo and Apollo East that filled in way below any of the drilling that we've done before. And then we had four holes semi-regionally up to 700 meters along strike from any other previous drilling, testing along strike extensions of the mineralized structure, which we did find and we found dyke, not in the thicknesses that we see in the main zone, but these were some of the first and early holes along the strike.

So now it really gives us an idea that the structure we know continues through 10 kilometers and just where the better parts develop again outside the core area are ours for the taking. So, we've got about three quarts of our drilling in the core area to drill out and extend a block of ground, 1.4 kilometers long down to a kilometer depth nominally. That being said, we're drilling a very deep hole at 1.5 kilometers as we speak beneath the core area, which is essentially an exploration hole in the absolutely truest sense. And then 20% of our drilling will be along the other nine kilometers, and we've just started to drill there. And there's lots of old mines along that whole 10 kilometer trend that were mined in a very similar way. So, this is a project that is being derisked. The grades are holding up the continuity demonstrating grade, but also only at the very earliest stages of discovery.

And arguably, just because these things get so much better at depth, we're just starting to touch on those areas on four out of the five main areas in the body. So, arguably we haven't even seen the best of what's to come from this project, which sounds perverse, but scientifically robust statement.

Gerardo Del Real: Yeah. No, look, I couldn't agree more. You are continuing what is one of the most aggressive drill programs anywhere. It's a 200,000-meter drill program through Q1 of 2027. You have assays pending from 42 holes that includes 10 that are actively being drilled. Look, it's a gold bull market. It's a historic market. I know the urgency with which the company wants to permit this and build it to capture the sweet part of this profit cycle. I think your timing couldn't be better. Anything to add to that, Mike, here, before we close out?

Michael Hudson: Well, we talked about the grade, and this is a tier one grade, and we've talked about the scale. So, the multimillion ounce plus 10 grand deposit ultimately is where we put our guidance. And then the other key point just to mention is that we're, of course, since we've last spoken permitted to put an exploration decline or an exploration tunnel, a one kilometer long tunnel, that will speed up the drilling. So, we've got 10 rigs on site today, but it will go to 22 and it will be one of the biggest drill outs, if not the biggest drill out globally at the moment. So, we are going for it. We've got the cash, we've got 140 million Australian dollars in the bank to execute on that big drill program and that decline leading to the first maiden resource in Q1, 2027. So, it's all go with... Time is our greatest enemy, Gerardo as you mentioned.

Gerardo Del Real: Well said. Well put, sir, have a great end of the year. And I'll see you on the other side of this one, Mike. Thanks again for a phenomenal year. Shareholders should be thrilled with the results to date and what's coming.

Michael Hudson: It's only getting better and better. So, let's see where we go in 2026, but I've got very strong convictions and hope that everything is just going down the right path here. So, thank you very much, Gerardo.

Gerardo Del Real: You got it. Thanks again, Mike.