Southern Cross Gold's Sunday Creek: A Strategic Play in the Antimony-Gold Supply Chain

The global critical minerals market is undergoing a seismic shift, driven by geopolitical tensions, supply chain vulnerabilities, and the urgent need for resource diversification. At the heart of this transformation lies Southern Cross Gold (SXGC), whose Sunday Creek Gold-Antimony Project in Victoria, Australia, has emerged as a standout opportunity. By combining cutting-edge selective flotation technology with a strategic position in a tier-1 jurisdiction, the company is not only de-risking its operations but also capitalizing on a confluence of geopolitical and economic tailwinds.

Technological Breakthrough: Selective Flotation and Environmental Efficiency

Southern Cross Gold's recent advancements in selective flotation technology have redefined the economics of antimony-gold processing. Through Stage 2 test work, the company has developed a process that separates antimony minerals from arsenic-bearing materials using specialized collector chemistry. This innovation yields a high-grade antimony-gold concentrate with 48.2–53.1% antimony, 93.2 g/t gold, and 0.1–0.2% arsenic—far below the 0.6% threshold required by smelters. The low arsenic content eliminates the need for costly blending or additional processing, reducing environmental risks and operational costs.

Gold recovery across three streams—gravity concentrate, antimony-gold concentrate, and sulphide concentrate—ranges from 91.8% to 95.6%, with gravity gold alone accounting for 37.3–51.4% of total recovery. This high-grade, easily recoverable gold further enhances margins. The process's non-refractory nature, enabled by the high proportion of native gold (84% in key samples), minimizes reliance on energy-intensive leaching, aligning with global sustainability goals.

Geopolitical Tailwinds: U.S. Tariff Exemptions and Chinese Export Restrictions

The strategic value of Southern Cross Gold's project is amplified by geopolitical developments that have reshaped the antimony market. China, which controls 48% of global antimony production and 63% of U.S. imports, imposed export restrictions in August 2025, requiring all antimony exports to be licensed by the Ministry of Commerce. These restrictions, part of a broader trend of Chinese mineral controls, have exacerbated global supply chain vulnerabilities and driven antimony prices to record highs (US$51,500/tonne in February 2025).

In response, the U.S. government exempted antimony from new reciprocal tariffs under President Trump's April 2025 executive order, recognizing its critical role in defense, energy, and industrial applications. Australia, a politically aligned ally with 7% of global antimony reserves, is now a key beneficiary of this exemption. Southern Cross Gold's Sunday Creek Project, located in a jurisdiction with strong governance and environmental standards, is uniquely positioned to supply high-grade antimony to the U.S. market without the regulatory and reputational risks associated with Chinese or Russian sources.

Strategic Positioning: Tier-1 Jurisdiction and Market Resilience

Australia's status as a tier-1 mining jurisdiction—ranked among the world's most politically stable and transparent—reduces operational and regulatory risks for Southern Cross Gold. The company's focus on low-impact processing and geometallurgical modeling further strengthens its social license to operate. With 21–24% of the Sunday Creek deposit's in-situ value tied to antimony, the project benefits from the mineral's strategic importance in semiconductors, lead-acid batteries, and defense applications, sectors with inelastic demand and long-term growth potential.

The U.S. National Defense Stockpile currently holds only a 42-day supply of antimony, far below the ideal one-year target. This shortage has spurred U.S. efforts to diversify supply chains, including investments in domestic projects like Perpetua Resources' Stibnite Gold Mine and partnerships with allies like Australia. Southern Cross Gold's ability to produce premium antimony-gold concentrates without reliance on Chinese processing infrastructure makes it a critical player in this transition.

Investment Thesis: High-Margin, Low-Risk Opportunity

Southern Cross Gold's Sunday Creek Project represents a high-margin, low-risk investment in a sector poised for structural growth. Key catalysts include:
1. Pilot Plant Optimization: Ongoing locked-cycle testing and geometallurgical modeling will refine the flotation process, enhancing scalability and efficiency.
2. Geopolitical Demand: U.S. and global demand for antimony is set to rise as China's export restrictions persist and energy transition projects accelerate.
3. Price Volatility: Antimony's 300% price surge since early 2024 underscores its undervalued status and potential for further appreciation.

For investors, the combination of technological innovation, geopolitical positioning, and tier-1 jurisdictional advantages creates a compelling case. Southern Cross Gold is not merely a mining company—it is a strategic enabler of global supply chain resilience, offering exposure to a critical mineral with inelastic demand and a clear path to commercialization.

Conclusion: A Defensible Play in a Fragmented Market

As the world grapples with resource nationalism and supply chain fragility, Southern Cross Gold's Sunday Creek Project stands out as a rare opportunity. Its selective flotation technology de-risks traditional antimony-gold processing, while its alignment with U.S. and Australian policy goals ensures long-term market access. With antimony prices at multi-decade highs and Chinese restrictions tightening, the company is well-positioned to capture a growing share of a high-margin, geopolitically sensitive market. For investors seeking exposure to the critical minerals boom, Southern Cross Gold offers a defensible, high-conviction play.