SQX Resources Gold Discovery Delivers Exceptional Arizona Drilling Results

SQX Resources Strikes Gold with Exceptional Maiden Drilling Results

SQX Resources Limited has delivered outstanding results from its maiden drilling programme at the Red Bird Gold Project in Arizona, confirming the presence of a substantial, shallow gold system with exceptional width and grade continuity. This remarkable gold discovery by SQX Resources represents a significant milestone, validating the company’s exploration strategy and substantially de-risking the project through systematic geological analysis.

The first batch of assays from 8 of 25 completed RC drill holes has revealed broad, near-surface mineralisation that demonstrates the scale and potential of this epithermal gold system. Furthermore, the results indicate vertical continuity from surface to at least 60 metres depth.

Outstanding Intercepts Demonstrate System Scale

The standout intercepts showcase the exceptional quality of this gold discovery by SQX Resources:

• • 42.7m @ 1.4g/t Au from 4.6m depth (RBRC012), including 9.1m @ 3.9g/t Au

• • 45.7m @ 1.3g/t Au from 4.6m depth (RBRC013), including 13.7m @ 2.2g/t Au

• • 16.8m @ 2.9g/t Au from 41.1m depth (RBRC020), including 6.1m @ 5.2g/t Au

• • 27.4m @ 1.0g/t Au from 15.2m depth (RBRC010), including 6.1m @ 2.0g/t Au

These results position Red Bird as a potential bulk-tonnage, near-surface open-pit resource in one of the world’s premier mining jurisdictions. Consequently, the discovery offers exceptional economics for potential development.

Systematic Drilling Programme Validates Strategy

The 25-hole, 2,509-metre RC drilling campaign was designed to provide the first modern technical validation of the historical Red Bird mine and surrounding mineralised footprint. In addition, the systematic approach targeted the epithermal gold system’s depth and strike extensions.

The programme built on promising channel sampling results released in February 2026, demonstrating management’s methodical approach to exploration. However, the drilling results have exceeded expectations in terms of width and grade consistency.

Technical Excellence in Exploration

Key Technical Highlights:

The drilling confirms that historic mining was largely confined to discrete, ultra-high-grade zones, leaving the majority of mineralisation unmined. For instance, modern bulk-tonnage mining methods could unlock value from the broader, continuous mineralised envelope that previous operators overlooked.

Management Commentary on Discovery Success

Executive Director Dr Julian Stephens commented on this significant gold discovery by SQX Resources:

“These results demonstrate excellent grade continuity and confirm significant near-surface, potentially open-pittable mineralisation. With our maiden drilling programme now concluded, we look forward to further assay results to define the potential at Red Bird.”

Understanding Red Bird’s Epithermal Gold System

Epithermal gold deposits form from hot, mineral-rich fluids that migrate upward through the Earth’s crust, typically creating gold-bearing quartz veins and altered rock zones near the surface. Furthermore, these systems are highly valued by miners because they offer several key advantages over deeper deposits.

Shallow mineralisation reduces stripping costs and development timelines, making projects more economically attractive. The near-surface nature means lower capital expenditure for mine development and faster payback periods for investors. Consequently, this creates significant value proposition for stakeholders.

Why Epithermal Systems Matter

Large tonnage potential can support long-life operations that provide sustainable cash flow and justify significant infrastructure investment. Unlike narrow, high-grade veins that may be quickly exhausted, epithermal systems often contain substantial resources measured in millions of tonnes.

Multiple ore zones provide mining flexibility and resource expansion opportunities. Operators can adjust mining plans based on commodity prices and selectively target higher-grade zones during periods of lower gold prices. However, the broad mineralised envelope at Red Bird offers consistent grade distribution.

Red Bird exhibits classic epithermal characteristics within the Cretaceous Bisbee Formation, featuring quartz veins, breccias, and extensive silicic alteration. The broad intercepts and near-surface occurrence suggest this system could support a substantial open-pit operation.

Arizona’s Mining Advantage

Arizona hosts world-class mining operations including Freeport-McMoRan’s copper mines and several active gold projects. The state’s established mining infrastructure, skilled workforce, and permitting framework provide significant advantages for project development compared to frontier jurisdictions.

Industry context shows that Arizona’s regulatory environment supports efficient project advancement whilst maintaining environmental standards. In addition, the proximity to processing facilities and transportation networks reduces operational costs substantially.

Systematic Resource Expansion Strategy

With 17 additional drill holes awaiting assay results, SQX is positioned to significantly expand the known mineralised envelope at Red Bird. The company has outlined a methodical approach to resource definition based on modern geological techniques and systematic exploration methodologies.

This gold discovery by SQX Resources provides the foundation for comprehensive resource development across multiple phases. Furthermore, the systematic approach ensures optimal resource definition whilst minimising exploration risk.

Immediate Development Priorities

Immediate Priorities (Next 3-6 Months):

• • Complete assay results from remaining 17 RC holes

• • Magnetic and IP geophysical surveys to identify depth and strike extension targets

• • Detailed underground geological mapping of deeper mine levels

• • Regional prospect assessment across the broader claims package

Medium-Term Catalysts (6-12 Months):

• • Additional drilling programme targeting system expansions

• • Resource estimation incorporating full drilling dataset

• • Metallurgical test work to optimise processing parameters

• • Environmental baseline studies supporting permitting

Advanced Geophysical Techniques

The IP (induced polarisation) geophysical programme represents a particularly important next step, as this technique can detect mineralised zones at depth that may not be visible from surface geology. IP surveys measure the electrical properties of rocks and can identify sulphide minerals commonly associated with gold deposits.

Success could multiply the current resource potential and extend mine life projections significantly. However, the systematic approach ensures that exploration investment is optimised for maximum discovery potential.

Underground geological mapping of deeper levels not yet accessed by the company will provide additional insights into structural controls and potential extensions. Historical workings extend to significant depth, suggesting the system continues beyond current drilling coverage.

Investment Thesis: Arizona Gold Discovery Potential

SQX Resources has systematically de-risked the Red Bird Gold Project through disciplined exploration and modern geological techniques. The maiden drilling results validate several key investment themes that position the company for potential value creation.

Scale and Grade Confirmation: The 42.7-metre and 45.7-metre intercepts demonstrate that Red Bird hosts substantial tonnage potential, not just high-grade pockets. Combined grades averaging 1.3-1.4 g/t Au over these widths compare favourably with producing open-pit gold mines globally.

Economic Advantages of Near-Surface Resources

Near-Surface Resource Potential: With mineralisation starting from 4.6 metres depth, Red Bird offers exceptional economics for potential open-pit development. Low strip ratios and reduced infrastructure requirements significantly improve project economics compared to deeper deposits.

The shallow nature eliminates the need for expensive underground development and reduces operational complexity. Consequently, this positions the project for faster development timelines and improved capital efficiency.

Exploration Upside: Only 8 of 25 holes have reported results, with the remaining assays expected to further define the mineralised system. The 50-metre strike extension demonstrated in RBRC010 suggests significant expansion potential beyond current drilling coverage.

Strategic Location Benefits

Strategic Location Advantages: Red Bird sits within a prolific Arizona mining district with established infrastructure, skilled workforce, and streamlined permitting processes. The project benefits from proximity to processing facilities, transportation networks, and mining service providers.

These advantages reduce development costs and operational risks substantially. Furthermore, Arizona’s stable political environment and established mining code provide regulatory certainty for project advancement.

Technical Validation: The systematic drilling approach provides confidence in geological interpretations and exploration targeting. RC drilling methods are industry-standard for exploration, providing reliable sample collection and accurate grade determination.

Comparative Analysis

*Based on similar epithermal gold projects in North America

Corporate Structure and Market Positioning

SQX Resources has positioned itself as a disciplined explorer with a portfolio of high-quality North American gold assets. The Red Bird results demonstrate the company’s ability to identify and systematically advance projects with genuine discovery potential in tier-one mining jurisdictions.

Strategic Portfolio Approach: Through its 80% interest in AM6 Mining LLC, SQX controls two advanced gold exploration projects in tier-one mining jurisdictions. The Williams Gold-Silver Project in Montana provides additional optionality, whilst Red Bird offers the immediate catalyst for value creation.

Technical Excellence and Exploration Philosophy

Technical Excellence: The systematic approach to Red Bird, combining historical data analysis, modern channel sampling, and strategic RC drilling, showcases management’s technical competency and methodical exploration philosophy. The company’s ability to identify broad mineralisation beyond historical high-grade zones demonstrates sophisticated geological understanding.

Upcoming Catalysts: With 17 additional drill holes awaiting results and geophysical surveys planned, SQX offers multiple near-term opportunities for resource expansion and value inflection. The company’s funded exploration programme ensures continued progress without immediate dilutive equity requirements.

Land Position: The project comprises 48 unpatented claims under AM6’s control, with 43 claims 100% owned and 5 core claims (Bird 1 through Bird 5) under purchase agreement. A 2% Net Smelter Royalty applies to the core five claims, with AM6 holding the right to purchase half the royalty for US$1.5 million.

Financial Framework and Development Pathway

The Red Bird discovery occurs within a favourable commodity price environment and established mining jurisdiction that supports project development. Arizona’s regulatory framework provides clear pathways for permitting and development, reducing political and regulatory risks compared to international jurisdictions.

Commodity Context: Gold prices have demonstrated resilience across economic cycles, providing stable demand for new production. Arizona’s proximity to major processing centres and transportation infrastructure reduces logistics costs and supports project economics substantially.

Development Economics

Development Pathway: The near-surface nature of mineralisation suggests potential for conventional open-pit mining methods. This approach typically requires lower capital investment than underground operations and offers greater operational flexibility for grade control and resource optimisation.

Resource Expansion Potential: Historical underground workings extend to significant depth, suggesting the epithermal system continues beyond current drilling. The company’s systematic approach to exploration provides multiple opportunities for resource growth through strike and depth extensions.

Furthermore, the consistent geological characteristics across the drilling programme support confidence in resource continuity and expansion potential.

Key Investment Takeaway

SQX Resources has delivered exceptional maiden drilling results that validate Red Bird as a significant epithermal gold discovery. With 17 additional holes pending results and systematic expansion programmes planned, the company offers compelling exposure to Arizona gold discovery potential in a tier-one mining jurisdiction.

Investors should closely monitor upcoming assay results and geophysical survey outcomes as key value catalysts. However, the systematic approach and disciplined exploration philosophy provide confidence in continued discovery success.

Corporate Information and Key Contacts

Company Details:

• • ASX Code: SQX

• • Primary Assets: Red Bird Gold Project (Arizona), Williams Gold-Silver Project (Montana)

• • Key Management: Bevan Tarratt (Executive Chairman), Dr Julian Stephens (Executive Director)

• • Corporate Structure: 80% interest in AM6 Mining LLC (US subsidiary)

The company maintains a focused approach to North American gold exploration whilst building shareholder value through systematic resource development. In addition, the experienced management team brings proven track records in exploration and project development across multiple jurisdictions.

What Makes SQX Resources a Compelling Gold Investment Opportunity?

With exceptional maiden drilling results now confirmed at Red Bird and 17 additional holes still awaiting assay results, SQX Resources is positioned at a pivotal moment in its exploration journey. The company’s systematic approach has successfully identified a substantial epithermal gold system in Arizona’s premier mining jurisdiction, with near-surface mineralisation offering exceptional development economics. As geophysical surveys commence and resource expansion programmes unfold, investors have the opportunity to participate in what could become a significant Arizona gold discovery. To explore SQX Resources’ full portfolio of North American gold assets and stay updated on upcoming drilling results and exploration milestones, visit the company’s website for comprehensive project details and investor information.