SXG is an
Highlights: Geological update focusing on vein morphology and continuity at the 100%-owned
A total of 42 mineralized vein set shapes have been created for Sunday Creek. The mineralized vein sets are typically between 5-30 m wide, 20-100 m in strike and currently defined vertically down to 1 km depth and up to 570 m in depth extent on an individual vein set basis.
Mawson owns 93,750,000 shares of SXG (51%), valuing its stake at
'The observations made here are important because, while geological continuity is critical when constructing a mineral deposit model, in most cases it is the continuity of the grade of the mineralization that will determine the economic nature of a deposit.'
As is standard in industry,
Geostatistics
A total of 42 mineralized vein set shapes have been created for Sunday Creek. Wireframes were created in Leapfrog Geo using a threshold of 1 g/t Au over 2 m. Modelling consistently shows the vein sets have a higher-grade core with broader lower grade halos. The Company, along with leading global consultants, are preparing grade variography with volumes determined by a strong understanding of geological and grade continuity, trends and other supporting information. The mineralization model provides the first geostatistical summary of the project.
Coefficient of variation
The coefficient of variation ('CV') is the ratio of the standard deviation to the average of the assay results. The lower the CV, the less variable and erratic the distribution of the mineralization is, and therefore it is easier to model.
In Apollo, where sufficient drill density and drill spacing is present, geostatistical assessment provides validity of the geological shapes. Within Apollo, the average of all the vein sets has a CV below 1.5 when applied to 1 m composite data and an average CV of less than 2 for raw assays. Rising Sun requires further drilling before similar calculations can be made. The CV at Apollo implies both a strong understanding of the geological controls on mineralization, correct sub-domaining of high tenor material and the predictability of high-grade mineralization within these shapes.
Stereonets
All diamond drill core drilled by
Geological controls on mineralization (structural, chemical, stratigraphic) exist in every ore deposit and Sunday Creek is no different. Mineralization is structurally controlled, with increased mineralization associated within the 'bleaching' around and within the intrusive sequence. Early alteration and sulphide (pyrite) mineralization exploited the vesicular/amygdaloidal nature of the pervasively altered/mineralized dyke and the brecciated areas, and forms east-west trending pyrite veinlets. Stereonet data supports this observation and shows pyritic veins parallel the east-west structural host and predates the higher tenor NNW Au-Sb mineralized vein sets.
Stereonet data also demonstrates that gold-antimony ('Au-Sb') mineralization is dominantly hosted within zones of sub-vertical, brittle-ductile NNW-NW striking shear veins and associated veins, containing visible gold, quartz, stibnite, occasional fibrous sulphosalts and minor ferroan carbonates infill. The veins have an associated selvedge of disseminated sulphides in the form of arsenian pyrite, pyrite and arsenopyrite. The mineralized vein sets are typically between 5-30 m wide, 20-100 m in strike and currently defined vertically down to 1 km depth and up to 570 m in depth extent on an individual vein set basis. These zones repeat every 10-20 m within the
When observed from above, the altered sediment and dyke host resembles the side rails of a ladder, where the sub-vertical mineralized vein sets are the rungs that extend from surface to depth.
Quality Control Data
Drilling recovery at Sunday Creek is excellent (99.2% average core recovery). All samples are oriented diamond core, predominately HQ core size. Quality control data is routinely acquired. Standards are inserted at regular intervals and show appropriate consistency. Both field duplicates (quarter core) and laboratory duplicates (from the LM5 pulverizer) show good consistency implying homogenization at both the core and pulp sampling stages with low variability. Addtional screen fire assay data compares favourably with fire assay data showing the homogenization of mineralization, and low nugget effect after pulverization.
Predictability
The Company is now able to plan drill holes and predict, with a high degree of confidence, the vertical and lateral extents of high-grade mineralization within the altered 'bleached' sediment and dyke host. This is best evidenced at the
Geological Likeness
A strong component of the geological domaining of vein sets and high-grade individual veins relies on the geological similarities of the interval; similar mineralogy, vein types and textures are critical to identifying the domain, as well as consistent orientations ensuring that assays are not simply being linked together in a coincidental manner. Figures 8-9 show examples of textural similarity of veins and breccias containing high grade gold from recent drillholes.
Old mining areas
Hard rock mining at Sunday Creek commenced in the 1870's and continued until after World War 1. Fifty years of historic mining records and remanent stoping highlight similar observations of the E-W host and continuity of the NW veins set structures.
'Sulphide in large and oxide in small quantities occur in connexion (sic) with numerous quartz reefs crossing a strong well defined diorite dyke, which cuts diagonally through the enclosing Silurian slates and sandstones of Sunday Creek, 8 miles east of Kilmore. The dyke has an average width of 80 feet it strikes E 100 N. It has been traced on the surface for over two miles uninterruptedly, is very fine grained, contains a large amount of arsenial (sic) and iron pyrites disseminated throughout, and towards the north is somewhat porphyritic in structure, passing over into aphanitic porphyry. It is generally a greenish colour.'
'Cutting through the dyke in a direction N100W, at intervals every few yards occur mineral reefs composed mostly of quartz, antimony, pyrites and breccias of the adjacent 'country'. Of these reefs, every one that has been exploited has proved auriferous.'
Additionally, historic mining stope orientations are consistent with surrounding orientated drill core and mineralized intercepts. Drilled mineralization at Apollo coincides spatially with historic stopes and development. LiDAR surface mapping also shows the consistent mining of the mineralized 'rungs' in a NW direction across the 10 km trend of historic surface workings at Sunday Creek.
Pre-Resource Studies
In-House and External Expertise
Southern Cross Management and Board have deep internal technical experience and the Company is led by those with who have made multiple discoveries which have advanced to mining across the globe over the last 30 years.
The SXG Board is Chaired by
Management is led by
About Sunday Creek
History
Regional Geology
Sunday Creek occurs with the
Structural Setting and Local Geology
Intruded into the sedimentary sequence is a series of intermediate monzodiorite - diorite dykes and breccias on an east-west trend.
Large scale thrusts sub-parallel to the NW trending structural grain, dislocate the dyke system and an array of sub-vertical extension veins form subparallel to the bedding trend and orthogonal to the intruded dyke sequence. Veining is focused within areas of high competency contrast, such as the intruded dyke and surrounding alteration, fold hinges and areas of structural complexity.
Alteration
Distally a regional chlorite alteration weakly pervades the sediments, with a change in mica composition from phengitic to muscovitic mica approaching mineralization, an increase in carbonate spotting and cementation and proximal to the dyke a very intense texturally destructive alteration of sericite-carbonate-silica 'bleaching' of the sediments.
Further Information
Further discussion and analysis of the Sunday Creek project is available through the interactive Vrify 3D animations, presentations and videos all available on the SXG website. These data, along with an interview on these results with Managing Director
Gold Equivalent Calculation
SXG considers that both gold and antimony that are included in the gold equivalent calculation ('AuEq') have reasonable potential to be recovered at Sunday Creek, given current geochemical understanding, historic production statistics and geologically analogous mining operations. Historically, ore from Sunday Creek was treated onsite or shipped to the Costerfield mine, located 54 km to the northwest of the project, for processing during WW1. The Costerfield mine corridor, now owned by
SXG considers that it is appropriate to adopt the same gold equivalent variables as
AuEq = Au (g/t) +1.58 x Sb (%).
Based on the latest Costerfield calculation and given the similar geological styles and historic toll treatment of Sunday Creek mineralization at Costerfield, SXG considers that a AuEq = Au (g/t) +1.58 x Sb (%) is appropriate to use for the initial exploration targeting of gold-antimony mineralization at Sunday Creek.
Analytical samples are transported to the Bendigo facility of On Site Laboratory Services ('On Site') which operates under both an ISO 9001 and NATA quality systems. Samples were prepared and analyzed for gold using the fire assay technique (PE01S method; 25 gram charge), followed by measuring the gold in solution with flame AAS equipment. Samples for multi-element analysis (BM011 and over-range methods as required) use aqua regia digestion and ICP-MS analysis. The QA/QC program of
MAW considers that both gold and antimony that are included in the gold equivalent calculation ('AuEq') have reasonable potential to be recovered at Sunday Creek, given current geochemical understanding, historic production statistics and geologically analogous mining operations. Historically, ore from Sunday Creek was treated onsite or shipped to the Costerfield mine, located 54 km to the northwest of the project, for processing during WW1. The Costerfield mine corridor, now owned by
SXG considers that it is appropriate to adopt the same gold equivalent variables as
Based on the latest Costerfield calculation and given the similar geological styles and historic toll treatment of Sunday Creek mineralization at Costerfield, SXG considers that a AuEq = Au (g/t) +1.58 x Sb (%) is appropriate to use for the initial exploration targeting of gold-antimony mineralization at Sunday Creek.
Certain information in this announcement that relates to historic mining is extracted from the Independent Geologist's Report, titled 'Independent Geologists Report Southern Cross Gold' dated
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Forward-Looking Statement
This news release contains forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, 'forward-looking statements'). All statements herein, other than statements of historical fact, are forward-looking statements. Although Mawson believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate, and similar expressions, or are those, which, by their nature, refer to future events. Mawson cautions investors that any forward-looking statements are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, Mawson's expectations regarding its ownership interest in
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