Mining operations have commenced at Southern Gold’s Cannon gold mine.
Work has begun on its open put, which is forecast to mine 152,000 tonnes of ore with an average diluted grade of 3.1 grammes per tonne of gold.
“Southern Gold has hit a few kit milestones this in what is the culmination of several years’ work,” Southern Gold managing director Simon Mitchell said.
“It is great to see ‘big yellow’ mining equipment deployed to site and the first unearthing of ore geology in the pit.”
Mining will be carried out of the next four to five months.
Metals X was contracted by Southern Gold to carry out all mining, haulage, and processing activities at the site.
All ore from the mine will be processed at Metals X Jubilee mill facility, located 35 kilometres southwest of the operations.
“It is anticipated that the current stage 1 open put will be superseded by a new larger pit development plan, but Southern Gold is committed to maintain momentum on the current Cannon mine construction phase and the completion of the Stage 1 open put to ensure near term cash flow,” Southern Gold said in a company statement.
The possibility of additional underground developments have also been raised, with expectations of eventually drilling below the current limits of the existing JORC resource.
“We have a huge opportunity when it comes to the possibility of a larger open pit operation as well as the longer term underground potential,” Mitchell said.
Exploration drilling has also commenced at satellite targets around the Cannon gold resource.