Victoria’s push to strengthen its position in Australia’s critical minerals landscape has taken a step forward, with the state government approving Southern Cross Gold’s Work Plan for an exploration tunnel at the Sunday Creek gold/antimony project.

The approval, announced on Thursday, enables the TSX- and ASX-listed company to proceed with an underground exploration decline that will give it direct access to high-grade mineralisation at Sunday Creek, about 60 km north of Melbourne. The tunnel will allow for detailed geological mapping, precision underground drilling, geotechnical data collection and early assessments of potential mining methods.

Victoria is the only Australian producer of antimony, a mineral recently added to the US Geological Survey’s list of critical minerals owing to its role in defence technologies, permanent magnets, solar panels, batteries and semiconductors.

The approval also comes amid a broader push from the state to fast-track advanced exploration for deeper deposits. It follows October’s approval of the Catalyst Metals/Hancock Prospecting Boyd’s Dam gold project and adds to momentum generated by key approvals for major mineral sands projects, including Astron’s Donald development and progress at VHM and WIM Resources.

According to the Minerals Council of Australia’s Victorian division, the latest decision sends a strong signal that the state is “open for business” and capable of efficiently delivering advanced exploration approvals while maintaining rigorous environmental and community standards.

Southern Cross Gold CEO Michael Hudson said the approval represented a pivotal step in transitioning Sunday Creek from exploration success to future development. “We are assembling the pieces needed for a commercially viable operation: an exceptional high-grade discovery with demonstrated depth continuity, strategic freehold land ownership, proven metallurgy, and now approval for underground access,” he said.

The company currently has ten surface rigs operating at Sunday Creek and expects to add a further 12 underground rigs once the decline is complete, creating what it describes as Australia’s largest predevelopment drilling programme.

Hudson noted that the approval process demonstrated strong collaboration with Victorian regulators. Southern Cross submitted its Work Plan in late July and received approval in November, following extensive environmental, cultural heritage and community consultation.

The approval is also expected to reduce local impacts by cutting the need for continuous surface drilling, fewer drill pads and minimising disturbance to neighbours, vegetation and heritage areas.

Site establishment works for the decline are planned within a month. Underground construction is expected to take between six and nine months and will proceed in parallel with secondary approvals under the Water Act and Environment Protection Act.

The Minerals Council said continued investment in exploration was essential to offset declining Victorian gold output and to unlock opportunities in antimony and mineral sands. It noted that more mining activity would generate highly skilled regional jobs, higher royalties and expanded economic benefits for local businesses.

Sunday Creek has been widely recognised as one of the most significant new gold/antimony discoveries in the Western world, with mineralisation traced over 1.2 km of strike and to depths of more than 1 100 m. Antimony contributes about 20% of the in-situ metal value, offering strategic supply potential while still supporting development based on gold economics.