SOUTHERN Cross Gold Consolidated (SXGC) has announced its intention to seek approval to construct an exploration tunnel at Sunday Creek.
Access to the proposed tunnel would be via a private road on SXGC-owned land in Clonbinane.
SXGC President and Chief Executive Managing Director Michael Hudson said that if approved, Southern Cross Gold would only be allowed to construct a tunnel to enable exploration drilling from underground.
“An exploration licence does not permit us to mine for minerals, nor does it guarantee that a mining licence will be approved,” he said.
“We are committed to working with the local community throughout this process.”
Environmental surveys are helping to determine the final position of the tunnel and infrastructure, such as sheds, offices, dams, and rock stockpiles.
SXGC expects to make the application to Resources Victoria in the third quarter of 2025 and if approved, to begin constructing the 600-metre-long, 150-metre-deep tunnel and related infrastructure in 2026.
Other government bodies, including water agencies and the Environment Protection Authority Victoria, will be involved in the project’s approval.
SXGC has undertaken ecology surveys and is using that information to refine designs. Technical experts are helping minimise impact on ground and surface water.
The Taungurung Land and Waters Council and heritage advisers are also being consulted with on the design.
Local residents are being extensively consulted with to minimise impact on the community, including building key surface infrastructure during daylight hours.
Some nearby residents may hear or feel vibrations from earthmoving equipment during normal working hours as infrastructure is built, underground work occurs, and tunnel material stockpiled. This material will later be used in rehabilitation.
Workers will be bussed to and from the project to minimise traffic, avoiding school times.
Some heavy vehicles will periodically access the site.
Dust suppression techniques will be used and air quality is not expected to be affected. On cold mornings, condensation exiting the ventilation shaft may be visible.
Infrastructure will be positioned behind hills and trees where possible. Building and lighting design, and visual screening will help infrastructure blend into the natural environment.
“The commencement of permitting for an exploration decline represents a significant step forward for Southern Cross Gold that will enhance our exploration capabilities without significantly increasing impacts on the local community,” Mr Hudson said.
“Underground drilling will allow us to operate more drill rigs and help us understand the Sunday Creek deposit more efficiently than our surface drilling program alone.
“We are committed to working with the local community throughout this process, and look forward to sharing more details about this project in the coming months.”
Mr Hudson said SXGC was making the exploration tunnel application to allow the company to determine whether a mine would be economically viable in the future.
“A decision to proceed with a mine would be made following a review of the underground drilling program,” he said.
“A separate application for a mining licence would be needed.”
