First gold pour recorded at Cannon
PERTH (miningweekly.com) – The Cannon gold project, in Western Australia, has produced its first gold, ASX-listed Southern Gold reported on Thursday.
Mining at the Cannon openpit mine started in August, with ore from the mine being processed through joint venture (JV) partner Metals X’s Jubilee mill at its South Kalgoorlie operations.
During the first six days of the milling campaign, some 16 243 t of ore were treated, recovering 1 125 oz of gold.
The Stage 1 openpit mine would see some 152 000 t of ore mined, at an average diluted grade of 3.1 g/t gold, containing some 15 000 oz of gold, with 13 500 oz of gold recovered.
The JV partners recently agreed to expand the Cannon gold mine to develop both the Cannon and Georges Reward deposits in a single pit, using common infrastructure.
It was estimated that this "big pit" scenario would extend the mine life of Stage 1 from the current nine-month operation to several years and could make Stage 2 underground options more viable.
Southern Gold chairperson Greg Boulton on Thursday said the first gold pour from Cannon was a significant milestone for the company and placed it in an elite group of companies transitioning from explorer to producer.
“Now that Southern Gold has visibility to cash flow and many exciting opportunities to grow the production pipeline, the future looks very promising and encouraging for our investors,” he added.
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