Much vaunted exploration company Southern Cross Gold has hailed an "extremely encouraging" drill result from below the Golden Dyke prospect that shows the mineral system continuing 450m below the main historic mines at the Sunday Creek project near Melbourne.

Southern Cross Gold has again reported eye-catching assays from its flagship Sunday Creek epizonal gold-antimony project in Victoria, adding two record intersections to its leaderboard and confirming the deposit appears to be improving at depth.

Two years after Mawson Gold successfully spun out its Australian gold projects to focus on its Scandinavian interests, the two companies are set to recombine and undo the past two years of corporate changes.

Canadian-listed Mawson Gold wants to reverse its spin-out of Victorian precious metals explorer Southern Cross Gold, pitching a merger that would result in the combined company being listed on the Australian and Toronto stock exchanges.

Southern Cross caught the attention of the gold bugs early last week with a deep diamond drill hit at its Rising Sun prospect within its 195-square-kilometre Sunday Creek epizonal gold project in the prospective structural Melbourne Zone, about 60km north of Victoria’s capital city.

Cashed-up Southern Cross Gold is looking to deliver more ultra-high-grade g old hits in Victoria, planning to double drilling coverage of its flagship Sunday Creek project.