THE BOURSE WHISPERER: Southern Gold (ASX: SAU) released results of the seventh processing campaign of ore treated during January and February 2017 from the company’s Cannon Gold Mine southeast of Kalgoorlie in Western Australia.
Southern Gold’s gold processing is being managed by Westgold Resources (ASX: WGX).
The latest campaign produce 14,257 ounces of gold, bring total production from Cannon to 44,576 ounces of gold.
Southern Gold indicated the eighth processing campaign of approximately 40,000 tonnes of Cannon gold ore is expected to commence towards the end of March and extend into April.
The ninth, and final, processing campaign from the open-pit is currently pencilled in for June.
“The seventh processing campaign was a substantial one for us, providing a window to sell gold into the current spot price north of $1,600 per ounce,” Southern Gold managing director Simon Mitchell said in the company’s announcement to the Australian Securities Exchange.
“Our recently announced hedge at $1,621 per ounce covers a portion of production yet to come.
“The Cannon proceeds account is now well in the black, providing Southern Gold with optionality on various final mine designs, including the potential to develop underground access that will enable the drilling of Cannon extensions at depth.”