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Southern Cross Goldfields acquires strategic gold deposits in WA

Published: 14:20 10 Sep 2013 AEST

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Southern Cross Goldfields (ASX:SXG) has exercised its option to acquire the Red Legs and Die Hardy gold deposits, located 30 kilometres north of its flagship 100%-owned Marda Gold Project in Western Australia, from private company Barranco Resources.

Red Legs and Die Hardy contain total JORC Resources of 122,000 gold ounces, with exploration upside, and lie within economic haulage distance of its proposed Marda Gold Project development.

The transaction continues SXG’s regional gold consolidation and production strategy around the Marda Project, where it is targeting an initial 50,000 ounce per annum operation.

Under acquisition agreement, Southern Cross will pay $500,000 and issue 20 million shares to Barranco.

Notably, at SXG’s current share price, this equates to an acquisition cost of $7 per resource ounce.

Marda is located in the Southern Cross/Marda greenstone belt, 500 kilometres east of Perth, where it has a dominant and strategic ground-holding.

In February SXG completed the acquisition of Troy Resources’ (ASX:TRY) Sandstone gold plant, giving it significant development optionality for Marda, and last month finalised a merger with Polymetals Mining (ASX:PLY).

Southern Cross' merger and acquisition activity has creating a strengthened resources company with a strong balance sheet and diversified asset base.

 

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