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Southern Gold’s share from the Cannon gold mine reaches $7.5M

The next campaign is expected to recover 3,500 ounces of gold.
Southern Gold’s share from the Cannon gold mine reaches $7.5M
Further drilling planned to target extensions of the deposit

Southern Gold (ASX:SAU) has received its fourth profit-share distribution of $2 million from the Cannon gold mine operations in Western Australia.

Southern Gold owns the Bulong Gold Project located 30 kilometres east of Kalgoorlie, which hosts the Cannon Gold Mine, projected to produce around 50,000 ounces of gold.

Westgold Resources (ASX:WGX) is financing and developing the deposit under a 50:50 profit share arrangement with Southern Gold.

Westgold is managing operations at the Cannon gold mine and processing the ore at the South Kalgoorlie Operations Jubilee plant, 35 kilometres to the southwest of Cannon.

The Cannon gold mine operations committee has paid $15 million in distributions to date, or $7.5 million each to Westgold Resources and Southern Gold.

Importantly, the eighth processing campaign of Cannon ore commenced last week and will continue until early April.

Around 40,000 tonnes of ore is expected to be treated recovering circa 3,500 ounces of gold. The next cash distribution is expected by the end of April.

The operations committee has recently approved a small underground operation to extract the high-grade ore at the bottom of the pit.

Subject to regulatory approvals, this mining activity will be completed in May with the high-grade parcel processed in June.

Meanwhile, the economics of a larger scale underground operation will be further assessed and diamond drilling targeting extensions of the deposit at depth will be designed.

Find out more from Simon Mitchell at Proactive's CEO Sessions.

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- Melbourne: Tuesday 11th April.
- Sydney: Wednesday 12th April.
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Presenter list

- Intermin Resources (ASX:IRC): MD Jon Price
- Southern Gold (ASX:SAU): MD Simon Mitchell
- Proteomics International Laboratories (ASX:PIQ): MD Richard Lipscombe
- Dimerix (ASX:DXB): CEO Kathy Harrison
- Novogen (ASX:NRT; NASDAQ:NVGN): CEO Dr James Garner (presenting in Melbourne only)

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