Southern Cross Gold share price explodes 225% higher on 'unprecedented' discovery

This gold share is glittering on Monday…

St Barbara share price Minder underground looks excited a he holds a nugget of gold he has discovered.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Southern Cross Gold Ltd (ASX: SXG) share price is rocketing higher on Monday morning.

In afternoon trade, the gold explorer's shares are up an incredible 225% to 65 cents.

Why is the Southern Cross Gold share price rocketing higher?

Investors have been bidding the Southern Cross Gold share price higher today after the gold explorer released positive drilling results.

According to the release, drilling at the Sunday Creek project in Victoria has uncovered a spectacularly wide intersection of gold-antimony mineralisation.

The Sunday Creek epizonal-style gold project is located 60 kilometres north of Melbourne within 19,365 hectares of granted exploration tenements.

With 13 promising drillholes now intersected, management considers Sunday Creek to be one of the better recent exploration discoveries to come out of Victoria.

But it may not stop there. Mineralisation remains open at depth and along strike. In addition, there is a 10-kilometre mineralised trend that extends beyond the drill area and is defined by historic workings and soil sampling at Sunday Creek. This is where exploration drilling has never been undertaken and thus offers potential future upside.

'Unprecedented' result

Southern Cross Gold's Managing Director, Michael Hudson, was delighted with the drilling results. He said:

This result is unprecedented in terms of width of high-grade mineralisation rarely, if ever, seen in the Victorian goldfields. A result of 119.2m @ 3.9 g/t AuEq places the Sunday Creek project into a new realm, and builds on what was already a remarkably successful drill program.

Continuity, with great width and grades, is now evident down to 335 m vertical depth in the Apollo Shoot that remains open to depth, while multiple adjacent shoots remain to be drilled out.

With the freehold land secured, industry-leading drill results, strong local relationships, a team of ore discoverers in place and the drill rig continuing to target extensions to mineralisation found in SDDSC033, we highly anticipate further results.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Gold

rising gold share price represented by a green arrow on piles of gold block

ASX 200 gold stock Chalice Mining just rocketed 14%. Here's why

Atop gold, the ASX 200 miner also explores for and produces platinum group elements (PGE), nickel and copper.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.

Why is the Evolution Mining share price crashing 15% today?

This gold miner is raising funds to make a major acquisition.

Read more »

A man in a suit face palms at the downturn happening with shares today.

Guess which ASX 200 gold stock sank 10% after insiders sold $32m of shares

This gold stock just reported some major insider selling.

Read more »

plummeting gold share price

Own ASX gold shares? Here's why you're having a horrible day

If you own ASX gold shares, you won't be too happy right now.

Read more »

a woman in a business suit holds a large solid gold bar in both hands with a superimposed image of a gagged gold line tracking upwards and featuring a swooping curved arrow pointing upwards.

ASX 200 gold shares smashing the benchmark as gold price hits new all-time highs

The All Ordinaries Gold Index is up 3.7% on Monday.

Read more »

a man wearing a gold shirt smiles widely as he is engulfed in a shower of gold confetti falling from the sky. representing a new gold discovery by ASX mining share OzAurum Resources

4 ASX 200 gold stocks delighting shareholders as gold price nears new records

ASX 200 gold stocks are making hay as the gold price toys with new all-time highs.

Read more »

A florist gets some good news on his laptop and tablet, a big smile on his face as he is surrounded by flowers.

ASX gold investors, get ready for Newmont's first dividend

ASX newcomer Newmont is about to fork out its first dividend.

Read more »

Close-up of a smiling man holding a jar containing nuggets of gold.

Guess which little-known explorer this ASX 200 gold stock is buying up

The junior ASX gold explorer has a promising pre-development project in Tanzania.

Read more »