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.

 

[divs4ever]

i notice their quarterly report came out yesterday

they have hit a lot of gold ( and antimony ) with the exploration drilling

so much so i was tempted to select it in the monthly comp. but choose GRR instead ( because i would like to buy more GRR cheap )

careful this looks like much of the big grades are in veins ( normally more expensive to extract per tonne of unprocessed ore )

i have no interest in buying this share , i nearly always buy MINERS ( and leave the explorers to others ) the exception was AAO which morphed into EML ( which has since been sold )

 

[Sean K]

i notice their quarterly report came out yesterday

they have hit a lot of gold ( and antimony ) with the exploration drilling

so much so i was tempted to select it in the monthly comp. but choose GRR instead ( because i would like to buy more GRR cheap )

careful this looks like much of the big grades are in veins ( normally more expensive to extract per tonne of unprocessed ore )

i have no interest in buying this share , i nearly always buy MINERS ( and leave the explorers to others ) the exception was AAO which morphed into EML ( which has since been sold )

This is going to be very selective mining. No caves, just small tunnels with a pick and shovel. Maybe using metal detectors at depth. Even then, the strip ratio will be massive. I do wonder whether some of those hits are nuggets. The 'ladder' analogy doesn't equate to any other gold system that I'm aware of. No geologists have got on here to tell us otherwise. I think this is going to be in the 'inferred' category for about a decade.

Having said that, I sold it at 50c, so I might be a dumb arse.

 

[divs4ever]

This is going to be very selective mining. No caves, just small tunnels with a pick and shovel. Maybe using metal detectors at depth. Even then, the strip ratio will be massive. I do wonder whether some of those hits are nuggets. The 'ladder' analogy doesn't equate to any other gold system that I'm aware of. No geologists have got on here to tell us otherwise. I think this is going to be in the 'inferred' category for about a decade.

Having said that, I sold it at 50c, so I might be a dumb arse.

sounds like nuggets and pockets to me ( and following the veins ) however that MIGHT mean reduced capital expenditure ( no big fancy electric trucks , but from what i saw on pay-TV ( on gold miners in North America ) the likely rock just eats crushing plants

also they seem to have a reasonable amount of Antimony how are they going to extract profitably , to me ( as inexperienced as i am in this ) hints they need to process the ore more like a copper play ( crush everything and extract it )

now of course IF they ever get around to extracting , they might go for the gold early to fund the antimony extraction later ( from the tailings )

i did note the drill results seem to only yield gold and antimony ( none of the usual co-products of a gold mine ) are the other minerals in uneconomical concentrations ?

i will be watching/learning this looks like it will take too long to get into reliable profit for me ( i am aging .. a decade in the future is a tall ask for me )