Southern Gold Limited (ASX: SAU) – $0.014
11 Aug 2015
Southern Gold Limited (ASX: SAU) has commenced mining operations at the Cannon Gold Resource located 30km east of Kalgoorlie in Western Australia (Figure 1).
Figure 1. Location of the Cannon Gold Resource
The company has contracted Metals X Limited (ASX: MLX) to conduct all mining, haulage and processing activities associated with the development of the Cannon mine with profit to be shared on a 50%:50% basis.
Stage 1 Open Pit operations have begun (Figure 2) with approximately 152kt of ore to be mined at an average fully diluted grade of 3.1g/t Au.
Figure 2. First stage excavation at the Cannon Gold Mine
Mining will continue during the next 4-5 months and ore from Cannon will be processed at Metals X Jubilee Mill Facility located approximately 35km southwest of Cannon.
Ore will be batch processed (unblended) with expected Stage 1 recovery of 13.5koz of gold at an AISC of A$1084/oz with an implied cash margin of approximately A$400/oz.
For further information, visit www.southerngold.com.au
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