In May 2012, SXG completed an externally-prepared Feasibility Study on the development of a new greenfields gold operation at its Marda Gold Project, located 200km north of Southern Cross in Western Australia.
In August 2012, SXG announced the acquisition of the Sandstone Gold Project including a 600,000 tpa gold processing facility and a 100-person camp with a view to relocating these assets to support cost effective development of the Marda Project.
The debt markets are currently very much open for business and we are focused on securing a competitive financing package that will enable us to move ahead with completion of this important transaction and put SXG on a clear pathway to gold production in 2013,' he said.
This information is supplied on the condition that SXG, and any director, agent or employee of SXG, are not liable for any error or inaccuracy contained herein, whether negligently caused or otherwise, or for loss or damage suffered by any person due to such error, omission or inaccuracy as a result of such supply.
SXG will retain no interest in the Radio Gold Mine following this decision.
Tenements comprising the Turner River Gold and Base Metals projects are the subject of a farm-in and joint venture agreement with De Grey Mining Limited (ASX:DEG) ("De Grey") under which SXG may earn a 75% interest in the project by funding exploration expenditure of $2.
The transaction is subject to SXG completing financing and standard approvals.
By being able to utilise the Sandstone plant, SXG will be able to accelerate the development of their exciting Marda development, located north of Southern Cross, for a lower capital cost and add the resources on the Sandstone property to their inventory.
c) SXG confirms that all the material assumptions underpinning the production target as stated in the May 2012 Announcement continue to apply and have not materially changed.
SXG reiterates that the revised study delivers robust economics placing the project as one of the most attractive gold project development opportunities in Australia.
With Mineral Reserves defined for an initial ten deposits within the district, SXG is strategically positioned in one of the most prolific Australian gold provinces as a genuine greenfield development opportunity.
SXG has completed comprehensive Project baseline and supporting environmental studies and has also undertaken extensive consultation with stakeholders.