Victoria has given the green light to a new exploration tunnel at the Sunday Creek Gold-Antimony Project, marking a major step forward in the Australian state’s drive to become a critical minerals hub. The approval by government regulators enables underground drilling and detailed geological work, giving Southern Cross Gold direct access to high-grade mineralization and significantly advancing the project toward potential development.
Under the approved work plan, a tunnel approximately 150 m deep and 600 m long will be constructed on company-owned land near Kilmore, about 60 km north of Melbourne. Once completed, the underground decline will allow for precision drilling, detailed geological mapping, geotechnical data collection, and early evaluation of mining methods — a significant upgrade from surface drilling.
Southern Cross Gold’s President & CEO described the approval as a “pivotal milestone” in transitioning Sunday Creek from exploration success to potential mine development. The company plans to ramp up its drilling capacity — adding 12 underground drill rigs to the existing 10 surface rigs, making it Australia’s largest pre-development drilling program.
The timing of this approval dovetails with Victoria’s broader strategy to expand its critical minerals sector. The Sunday Creek project is especially important because it produces antimony, a mineral recently designated a “critical mineral,” vital for defence, semiconductors, batteries, solar panels and flame retardants. Victoria remains the only state in Australia producing antimony.
Government officials underscored the economic and social benefits of the decision. The project is expected to create skilled regional jobs, generate royalties that can fund public infrastructure, and stimulate local economies through increased demand for services and supply from small businesses.
Moreover, the move represents a clear signal to investors that Victoria is “open for business” — capable of delivering advanced exploration approvals without compromising on environmental or community standards.
With strong drilling results already reported at Sunday Creek, including continuity of mineralization to depths of over 1,100 m, the new tunnel approval significantly enhances the chance that the project will eventually move into production — potentially establishing Victoria as a major supplier of critical minerals in the global market.
This approval reflects a growing global trend toward securing supply chains for strategic minerals, and positions Victoria — and Australia — to play a larger role in the low-carbon and high-technology future.