The Cannon underground indicated and inferred resource is 142,000 tonnes at 5.2 g/t gold for 23,600 contained ounces of gold, with a further potential to increase the resource with drilling.
Mining at Canon is being conducted by Westgold Resources Ltd (ASX:WGX) which is financing and developing the deposit under a 50/50 profit share arrangement with Southern Gold.
The new resource was estimated using the inverse distance weighting (IDW) method based on the results of 126 drill holes.
The drill hole spacing across the resource ranges from five to ten metres along strike and is considered close spaced drilling, providing a high confidence in the resource estimate.
Importantly, high prospects for economic extraction is expected from the underground mine extension, given the high-grade nature of the main ore and the existing infrastructure of the open-pit.
The deposit is currently untested at depth and additional footwall lodes can add to the resource after infill and extensional drilling.
Stepping back from the Cannon deposit, Southern’s geologists are now targeting the Cannon shear as a potential host for additional mineralisation along strike.