Golden Cross Resources enters a funded drilling phase at Reedy Creek

Golden Cross Resources is moving from an initial discovery campaign into a larger test of its Reedy Creek gold project in Victoria. Cashu Research’s October exploration update says early drilling has confirmed high-grade mineralization in a geological setting comparable to Southern Cross Gold’s Sunday Creek discovery, while a fully funded Phase 2 program is now underway.

Cashu Research rates Golden Cross Resources BUY (Speculative), with a US$1.04 target price against a reported current price of US$0.43. The research house describes that as 142% upside over its investment view. The report’s main recommendation block gives a 12–18-month horizon, while its later investment view uses 12 months, so the stated timeframe is not fully consistent within the note. The risk profile is listed as high.

The investment case rests on evidence that Reedy Creek hosts a fertile high-grade gold system rather than on an established mining operation or defined resource. Golden Cross’s maiden drill campaign returned 10.8 metres at 2.08 grams per tonne of gold, including 0.5 metres at 24.4 grams per tonne, from hole PWD004.

The report also highlights 23 metres at 3.01 grams per tonne, 9 metres at 3.64 grams per tonne and 10 metres at 2.81 grams per tonne from resampled historical core. Cashu Research says these intersections confirm visible gold and arsenic–antimony mineralization consistent with Victoria’s high-grade epizonal gold systems, citing Fosterville as a regional example.

Those results support the company’s close-proximity geological thesis beside Sunday Creek, but the next test is whether mineralization continues into deeper feeder zones. Cashu Research says the company has advanced to deeper targets where high-grade feeders are considered most likely, making the next drilling results central to the investment case.

Golden Cross has commenced a 10,000-metre Phase 2 drilling program using two rigs along strike and at depth. The company is testing extensions at Reedy Creek, including Welcome Reef, described in the report as a historic high-grade area that has never previously been drilled.

The immediate news flow includes the remaining 1,900 metres of Phase 1 assays, which are expected through Q4 2025, as well as initial Phase 2 results. The report also points to new sampling and mapping across the expanded tenements, with the aim of defining 2026 targets.

The land position adds scale to the exploration strategy. Golden Cross’s holding now exceeds 750 square kilometres and consolidates 46 kilometres of strike contiguous with Sunday Creek. Cashu Research says the larger footprint could provide scope for multiple discovery zones, although that potential still depends on exploration results.

Golden Cross remains well-funded after a C$5 million private placement in mid-2025 led by Jupiter Asset Management. The report lists approximately C$5 million in cash and estimates drilling costs at about C$230 per metre.

Cashu Research says the entire Phase 2 program is fully financed, with no immediate financing required and no expected dilution. That is important for a speculative exploration company because it gives management room to pursue the current drilling plan without an identified near-term funding gap. It does not remove geological risk: the value of the program ultimately depends on whether the drilling produces results that support a larger discovery.

Cashu Research frames Golden Cross as a pure-play discovery opportunity with exposure to a proven geological setting, an aligned management team and a funded exploration runway. The report compares the company with Southern Cross Gold’s A$1.8 billion market capitalization to illustrate the potential valuation gap if Phase 2 results validate the deeper system. That comparison is presented as a source of possible re-rating potential, not as evidence that Golden Cross has reached the same development stage.

The report’s stated upside is therefore conditional. A substantial re-rating would require Phase 2 results to validate the deeper system, while disappointing or inconclusive assays would weaken the discovery thesis. Investors also face the normal volatility associated with an exploration vehicle, and Cashu Research labels the opportunity high risk.

For investors assessing the report, the key milestones are the remaining Phase 1 assays, early Phase 2 intercepts, drilling at depth and results from Welcome Reef. The company’s regional sampling and mapping program may broaden the target pipeline, but the central question remains whether Reedy Creek develops from a promising mineralized system into a discovery capable of supporting the valuation target.

This is commissioned research for Golden Cross Resources. The disclosure says Cashu Research has received compensation for non-investment-banking services connected with its reports, with payment potentially coming directly from the issuer, an investment manager or an investor-relations consulting firm engaged by the issuer. Cashu Research also states that the report is not personal investment advice and that investing involves risk.