Can Golden Cross Mimic Southern Cross's Success?
Contributed Opinion

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Golden Cross Resources and Snowline Gold Corp.
2. Bob Moriarty: I, or members of my immediate household or family, own securities of: Golden Cross Resources. My company has a financial relationship with Golden Cross Resources. My company has purchased stocks mentioned in this article for my management clients: None. I determined which companies would be included in this article based on my research and understanding of the sector.
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I've discovered a small exploration company with tremendous potential and an outstanding project. The company is Golden Cross Resources Ltd. (AUX:TSXV). I'd like to draw parallels with two other enterprises that share comparable narratives.

The initial comparison involves Southern Cross Gold Consolidated Ltd. (SXGC:TSXV; SX2:ASX), which possesses an identical mineral deposit adjacent to Golden Cross's property. Southern Cross operates twenty drilling rigs actively exploring its Sunday Creek asset. Exceptional drilling outcomes have propelled Southern Cross to a market valuation exceeding one billion dollars, supported by more than 120 outstanding high-grade intersections.

Southern Cross traded at merely CA$0.30 just three years prior and recently reached CA$7.20. When contrasting Southern Cross with neighboring Golden Cross, Southern Cross commands approximately 33 times greater valuation.

The second comparison involves Snowline Gold Corp. (SGD:TSX.V; SNWGF:OTCQB), led by the exceptional Scott Berdahl. Snowline commenced operations only three years ago in the remote eastern portion of the gold-rich Tombstone Gold district in the Yukon. Scott extensively drilled the Valley Project and has established roughly 8 million ounces in the measured and indicated categories. Similar to Southern Cross, Snowline's share price climbed from $0.185 three years ago to $8.95 recently. When comparing Snowline Gold's market capitalization to Golden Cross, it stands 36 times larger.

I included Snowline for dual purposes. First, it represents an outstanding success story, and second, it features Canada's most exceptional management team over the past three years. Golden Cross's CEO is Matt Roma. He co-founded Snowline, served as CFO, and currently holds the CFO position at Gladiator Metals. He understands precisely how Scott Berdahl achieved such remarkable success because they were collaborators.

Therefore, Southern Cross trades at 33 times Golden Cross's value while Snowline trades at 36 times. Let's examine this more thoroughly.

Golden Cross sits within Victoria, Australia's most productive gold region. Previous drilling uncovered assays reaching 11 meters at 31.4 grams per tonne gold (g/t Au) and 2 meters at 174.42 g/t Au. The high-grade mineralization occurs in parallel quartz gold veins arranged like ladder rungs, spaced between 40 and 140 meters apart.

Earlier operators believed the hanging wall and footwall surrounding the extremely high-grade quartz veins contained no gold and never conducted sampling. Southern Cross disproved this assumption. Their assays demonstrated 0.3 to 0.5 g/t Au in these areas. This discovery partially explains their outstanding assay outcomes. Golden Creek is re-analyzing all existing cores to evaluate the zones between high-grade quartz veins.

Southern Cross drills at Sunday Creek, approximately 10 kilometers south of Golden Cross's Reedy Creek target zone. Southern Cross has identified two of the 600-meter ladder rungs that produced such remarkable results. Golden Cross initiated a 6,000-meter drilling campaign two weeks ago. The initial 2,000 meters will comprise brief, 100-200 meter holes targeting LiDAR-identified ladder rung prospects. The subsequent 4,000-meter program will expand upon insights gained from the shorter drilling phase. Both programs have secured complete funding. Golden Cross's technical analysis has identified 55 ladder targets, with approximately twenty located at the Reedy Creek prospect.

On June 19, Golden Cross announced a modest private placement to secure CA$3 million for expanded drilling. The offering is priced at CA$0.45 with a half-warrant at CA$0.65. I anticipate the company will likely increase the placement to the maximum permitted amount.