Golden Cross Resources has sold its Queensland coal tenements to fund major drill programs and develop its priority projects in other states.

The company will retain its 2500sqkm Eromanga Basin coal applications, while the sale of the Surat and Galilee basin coal tenements will inject a significant cash flow into the company’s working capital. The terms of the sale to a Queensland-based coal explorer is remaining confidential at this stage.

Golden Cross managing director Kim Stanton-Cook says the funds will enable the company to make further progress with exploration at its Copper Hill project near Molong in New South Wales, including metallurgical and financial studies now under way.

“Further metallurgical test work and a scoping study can also now be funded at the Cargo Gold Project which is not far from Copper Hill. Golden Cross can also continue its core drilling program at Cargo to define further gold resources.

“The company also intends, once land access is granted, to drill test the geophysical anomalies defined within its IOCG projects in the Gawler Craton of South Australia, while our Cobar region projects in New South Wales also hold well-advanced targets and this new funding will allow drilling to commence within our Canbelego and Rast tenement areas.”

This addition to the company’s cashflow comes after a successful submission to the South Australian Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) for funding of an exploration drill program under the government’s PACE 2020 program.

In 2011 Golden Cross reviewed geophysical data to identify six targets with similar characteristics to known IOCG prospects and deposits elsewhere in the Gawler Craton and a further 14 targets have since been identified this year. Golden Cross has been advised that funding of $75,000 has been approved towards the drilling costs of the 2011 targets.

The company continues to progress its Copper Hill project with metallurgical testing delivering improved results. It says there is potential to considerably reduce the project’s mill and plant capital costs if an existing one, currently for sale, proves suitable. Golden Cross is expected to announce new resource estimates for its Cargo gold project in coming weeks.

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