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Striking a pose

in Southern Cross

by Michael Washbourne

Ask your standard retail investor
to name the most prolific gold
districts in Western Australia and
it’s unlikely you will find many who
list Southern Cross among the
first five, even though the region
has produced more than 12 moz
since the turn of the last century.

t is a challenge that Paul Stephen has learned to embrace good standing,
Isince taking the reins of little-known TSXV-listed explorer and the timing is
Altan Rio Minerals Ltd last year. And that’s not just because now right to bring
there is an easy explanation as to why Southern Cross is often them to market.”
Altan Rio chief executive Paul Stephen
overlooked by investors seeking out the next emerging gold While April 2013 is at the Pilot mine
story. often remembered
“It’s been an interesting experience for me because, yes, for having the biggest single-day fall in the gold price, it was
investors generally aren’t aware of it, but when you start naming also a watershed month in the recent history of Southern Cross
some of the mines in the area – the Yilgarn Stars, the Marvel with Chinese-backed Hanking Gold Mining Pty Ltd acquiring
Lochs, Copperhead, Golden Pig, Fraser – people in the mining the mothballed Marvel Loch assets from a struggling St
industry almost always go ‘oh, I remember that mine and how Barbara Ltd.
profitable it was’,” Stephen told GMJ. In an eerie coincidence, St Barbara itself had taken ownership
“I do feel it’s been very overlooked from an investor of the Marvel Loch mines and processing plant, 35km south of
perspective, but the reality is investors haven’t really been the Southern Cross townsite, almost a decade earlier following
given the opportunity to deploy funds into Southern Cross the collapse of Sons of Gwalia.
until now. There’s no question the majority of the belt, certainly Hanking revived the operation and poured first gold in early
south of the town of Southern Cross, is in the hands of private 2015, but was ultimately forced into a sale just two years later
investment out of China. And the majority of the ground to the after its plans to list on the ASX were vetoed by the Hong Kong
north of the town, for a long time, was held privately by our Stock Exchange which hosted its parent entity.
chairman John Jones.
Another Chinese-backed group, Barto Gold Mines Pty
“Those of us that have been through the commodity cycle Ltd, is now the owner-operator of Marvel Loch and while
remember clearly the lack of enthusiasm for gold from 2013 to the refurbished 2.2 mtpa plant continues to tick over, it is
2016 and I think it’s important to remember that raising funds for understood to be hungry for more feed. Ramelius Resources
gold exploration and drilling during that period was extremely Ltd’s Edna May operation hosts the only other active gold mill
difficult. So, the view was taken to keep these tenements in

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