Up 74% since August, ASX 300 gold stock hits new high-grade zones in Victoria

S&P/ASX 300 Index (ASX: XKO) gold stock Southern Cross Gold Consolidated (ASX: SX2) is tumbling today.

Southern Cross Gold shares closed yesterday trading for $9.77. In early morning trade on Wednesday, shares are changing hands for $9.35 apiece, down 4.3%.

For some context, the ASX 300 is up 0.1%, while the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down 1.2% at this same time.

The broader gold market selling pressure today comes amid investor concerns that the Middle East conflict could reignite rather than wind down following renewed military strikes overnight. Those fears sent the gold price down 1% to currently be trading at US$4,220 per ounce, according to data from Bloomberg.

Still, investors who bought Southern Cross Gold shares at the 1 August closing price of $5.37 will be sitting on gains of 74.1% today.

The ASX 300 gold stock has benefited from both its own operational successes on and below the ground as well as a surging gold price. Despite recent declines, the yellow metal has gained 25% since 1 August.

Now, here’s what Southern Cross Gold just announced.

ASX 300 gold stock hits high-grade zones

Southern Cross Gold shares are falling today despite the miner reporting on some high-grade intercepts at its 100%-owned Sunday Creek Gold-Antimony Project, located in Victoria.

The results stem from seven drill holes from the Apollo and Apollo East prospects within Sunday Creek.

Among the top results, the ASX 300 gold stock reported one hole returned 36.6 metres at 6.5 grams of gold equivalent per tonne (4.0 g/t Au, 1.0% Sb) from 700.0 metres. ‘Sb’, if you’re not familiar, is antimony, a silvery metalloid often used in batteries and to strengthen other metals, like lead.

The miner said the latest drill results show the continued high-grade growth in Apollo as its ongoing exploration continues to expand the known boundaries of the mineralisation.

What did Southern Cross management say?

Commenting on the drill results that could help support the ASX 300 gold stock longer term, Southern Cross CEO and president Michael Hudson said, “These seven holes continue to do what Sunday Creek does best, growing the system in every direction we test.”

Hudson noted:

[Drill hole] SDDSC202 delivered a standout 36.6 metres at 6.5 g/t AuEq with high grade assays up to 493 g/t gold, while [hole] SDDSC214W1 has pushed mineralisation to the most easterly position yet identified anywhere on the property, opening up new ground at Apollo East. The shallow, antimony-rich results up to 31.3% Sb in [hole] SDDSC217 are equally important, confirming strong critical-metal tenor close to surface.

Looking ahead, Hudson concluded, “With eleven rigs turning and 67 holes pending, we are only accelerating as we drive toward defining the full extent of this exceptional gold-antimony system.”

The post Up 74% since August, ASX 300 gold stock hits new high-grade zones in Victoria appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.