THE BOURSE WHISPERER: Southern Gold (ASX: SAU) has joined the gold producer ranks, having completed the first gold pour from the company’s 100 per cent-owned Cannon gold mine, east of Kalgoorlie in Western Australia.
The Cannon open pit mine is being financed and operated by development partner Metals X (ASX: MLX) in a profit share arrangement, with both parties entitled to 50 per cent of the profits after repayment of costs which are charged on an at-cost open book basis by Metals X.
Cannon ore is being processed through Metals X’s Jubilee Mill, which is located a t that company’s South Kalgoorlie operations, approximately 35km from Cannon by haul road.
The key statistics of the first six days of the campaign leading up to the first pour were:
Tonnes of Ore Treated – 16,243 tonnes
Head Grade – 2.42 grams per tonne gold
Estimated Contained Ounces – 1,264 ounces of gold
Overall Average Plant Recovery – 89 per cent
Recovered Ounces – 1,125 ounces of gold
“After a challenging couple of years and much effort on the part of the Southern Gold team it is especially gratifying to see the first gold pour become a reality,” Southern Gold chairman Greg Boulton said in the company’s announcement to the Australian Securities Exchange.
“This is a significant milestone for the company and places it in an elite group managing to transition 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.
“We look forward to taking the company to the next level.”