SQX Resources (ASX: SQX) defines larger and more continuous Red Bird gold system

SQX Resources Executive Director Dr Julian Stephens spoke with MarketOpen to further discuss the outcomes of the completed 25 hole maiden drilling program at the Red Bird Gold Project in Arizona. The latest results confirm a larger and more continuous gold system with mineralisation remaining open along strike and at depth.

This Q&A focuses on what has changed in the geological understanding, how this supports a clearer targeting framework, and how the company is sequencing its next phase of work. Dr Stephens also addressed how geophysical surveys and follow up drilling will be used to refine targets and advance the system.

The final program confirms a larger, more continuous system than previously understood. What has materially changed in your view of scale and continuity, and how does this reset your immediate priorities?

The completed 25 hole program has demonstrated that the Red Bird system is both larger and more continuous than historical work indicated. Across the dataset, we are now observing consistent gold mineralisation across two stratigraphic horizons that coalesce toward a major fault, which provides a clear structural framework for the system. Mineralisation extends along strike and remains open, indicating that the system has not yet been fully defined.

Our immediate priorities are focused on extending the system along strike and at depth, while applying the established geological model to guide targeting. This includes advancing geophysical work to identify additional targets and designing follow up drilling to test extensions to the mineralised zones.

Mineralisation remains open with new zones identified. How are you sequencing follow up drilling to target the highest value extensions while maintaining capital discipline?

Our approach is to sequence follow up work by focusing on areas where mineralisation remains open and where recent drilling has identified additional prospectivity. This includes extensions along strike, at depth, and in the footwall, which has emerged as a new area of interest.

We are prioritising the integration of IP geophysics, which is currently underway, to identify potential repeats of the host units and test for deeper mineralisation along the controlling fault. At the same time, we are assessing alteration patterns across the broader claim area to refine targets. Once this work is complete, follow up drilling will focus on extensions to the mineralised zones identified in the current program.

The model is a fault controlled, strata bound system. How does this improve targeting predictability and reduce exploration risk?

The establishment of a fault controlled, strata bound model provides a clearer framework for understanding where mineralisation occurs. Gold is now interpreted to occur within specific host units in proximity to a major fault. This provides defined horizons and a structural control that can be followed.

This improves our targeting methodologies by allowing us to focus on areas where these key elements coincide. It reduces uncertainty by narrowing the range of potential targets and increasing confidence in where mineralisation may extend. It also supports the use of geophysical surveys to identify repeats of the host units and potential extensions along the controlling fault, which can then be tested through drilling.

Near surface intercepts suggest bulk tonnage potential, but the system is still being defined. What key uncertainties remain, and how will upcoming work programs resolve them?

While drilling has confirmed near surface mineralisation and continuity across multiple horizons, the full lateral and vertical extent of the system remains undefined. Mineralisation is open along strike and additional prospectivity has been identified in the footwall, indicating that the overall system footprint is not yet fully constrained.

The current IP geophysical program is designed to identify potential extensions at depth and along strike, as well as repeats of the host units. This will be combined with regional assessment of alteration zones to refine targets, followed by additional drilling to test extensions to the mineralised system.

Execution focus shifts to extension and definition

The completed program confirms a larger and more continuous system at Red Bird, while also highlighting that further work is required to define its full extent. SQX Resources immediate focus is on integrating geophysical data and geological modelling to refine targets before advancing additional drilling. This staged approach is intended to improve targeting accuracy and systematically test extensions to the mineralised zones.

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