Southern Cross Gold Named Preferred Antimony Grant Recipient as Labor Pledges $20M
Key Takeaways
- Labor's A$20 million antimony processing pledge is an election promise tied to the 28 November 2026 Victorian vote, not secured funding and not a commitment to SXGC.
- SXGC is a preferred recipient, not a final awardee, of a shared grant of more than A$750,000 with Gekko Systems, with no split disclosed.
- The grant funds pilot-scale metallisation test work on Sunday Creek concentrate to show whether it can be turned into antimony metal.
- Antimony makes up roughly 15% to 17% of Sunday Creek's in situ recoverable value, making it a meaningful second metal alongside gold.
- The proposed facility targets up to 5,000 tonnes of antimony metal a year, while China holds 56% of global mined supply and Costerfield is Australia's only producing mine.
A$20 million antimony processing pledge and grant win lift Southern Cross Gold (ASX:SX2)
Two separate antimony developments landed for Southern Cross Gold Consolidated Ltd (SXGC) this week, and only one of them involves money the company can actually use. Labor has made a A$20 million election commitment toward Australia’s first antimony processing facility in northern Victoria, and SXGC has been named a preferred recipient under the Advancing Antimony Grants program.
SXGC and Ballarat-based Gekko Systems will share more than A$750,000 to fund studies into antimony processing options and supply chains. No split between the two recipients is disclosed.
The distinction matters. The A$20 million is an election commitment of the Victorian Labor Party, conditional on its re-election at the Victorian State election on 28 November 2026 and on the terms of any future funding arrangements. It is not secured funding, and it is not a commitment to SXGC.
The grant status is “preferred recipient”, not a final award. For investors, government backing for a domestic antimony supply chain supports the dual-metal (gold and antimony) thesis at Sunday Creek.
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What the commitment and grant cover
The proposed facility
Labor’s announcement, as described by the company, outlines a facility with these features:
- Open to Australian producers
- Designed to produce up to 5,000 tonnes of antimony metal a year
- Expected to support around 200 construction jobs and 60 ongoing skilled jobs (figures attributed to Labor’s announcement)
Labor’s announcement also identifies Sunday Creek as a key Victorian antimony discovery, alongside existing production at Costerfield. SXGC itself is only studying an antimony metallisation facility, which would take concentrate from Sunday Creek and other Australian producers.
What the grant funds
The Advancing Antimony grant will contribute to the following work:
- Pilot-scale metallisation test work on Sunday Creek concentrate
- Confirming antimony and gold recoveries
- Testing antimony metal product quality
- Characterising process residues for environmental permitting
- Updated flowsheet and balance-of-plant engineering for the proposed facility
In plain terms, this is the test work that shows whether Sunday Creek concentrate can realistically be turned into antimony metal. Announcing the grants, Minister for Energy and Resources Jaclyn Symes said:
Jaclyn Symes, Minister for Energy and Resources
“We’re backing Southern Cross Gold and Gekko Systems to build the case for local antimony processing and bring new investment to regional Victoria.”
Why antimony matters for Sunday Creek
Antimony explained
Antimony is a metal used in defence applications, solar panel glass, batteries and flame retardants. It is also an additive to primers in munitions. Australia, the United States, Canada, the European Union and Japan all list it as a critical mineral.
Antimony concentrate produced in Victoria is currently shipped overseas for processing. Onshore metallisation would target that gap in the supply chain.
Supply is concentrated. China claims a 56% share of global mined supplies of antimony, according to a 2023 European Union study, and all of Australia’s production comes from a single mine at Costerfield in Victoria.
Antimony’s weight in the project
Antimony represents approximately 15% to 17% of Sunday Creek’s in situ recoverable value (the value of metal in the ground that could be recovered), based on the AuEq ratio of 2.39. The gold equivalent formula is AuEq = Au (g/t) + 2.39 × Sb (%).
That makes antimony a meaningful secondary contributor rather than a side note. The table below sets out the key figures.
| Fact | Source | Investor relevance |
|---|---|---|
| 15% to 17% of in situ recoverable value | SXGC, based on AuEq ratio of 2.39 | Shows antimony is a material part of the project’s value alongside gold |
| Up to 5,000 tonnes a year design capacity | Labor’s announcement | Describes the proposed facility’s intended scale, subject to the election outcome and funding terms |
| More than A$750,000 shared grant | Victorian Government, Advancing Antimony Grants program | Funds studies only, shared with Gekko Systems, with no per-recipient split disclosed |
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CEO comments and project strength
Michael Hudson, President and CEO, framed the commitment as a step toward domestic processing, though he did not treat it as a done deal.
Michael Hudson, President and CEO
“The Carroll Labor Government’s election commitment is a practical step towards processing that antimony into metal here in Victoria… The Advancing Antimony grant funds the test work needed to assess turning potential future Sunday Creek concentrates into antimony metal for Australian and allied supply chains…”
The company’s profile at Sunday Creek, as set out in the announcement, includes:
- 106 composite intersections exceeding 100 g/t Au from 146.4 km of drilling (including historic drilling)
- A “Golden Ladder” structure over 12 km of interpreted strike length
- Preliminary gold recoveries of 93% to 98% through gravity and flotation
- 2,296 Ha of freehold land in and around the main drilled area
- First mining licence application, MIN009040, lodged in September 2026
- A 200 km drill program planned through Q1 2027
The company also points to its inclusion in the US Defense Industrial Base Consortium (DIBC).
What comes next?
Three items are in focus: the Victorian election on 28 November 2026, the grant-funded test work, and continued engagement with Resources Victoria and the Commonwealth Government. The announcement does not disclose timelines for the test work.
The forward-looking statement also flags the terms and timing of any government funding, test work results, and the availability of financing and offtake arrangements as factors that could change outcomes.
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