New gold mine slated for Western Australia

Southern Gold is forging ahead with the development of a new gold mine in Western Australia after positive results in a pre-feasibility study.

The study indicated the Cannon Gold resource, located 30 kilometres from Kalgoorlie, could produce more than 68,000 ounces of gold over its three-year mine life.

In a statement to the ASX, Southern Gold announced that it had confirmed a low capital, near-term development pathway for its 100 per cent owned project.

The company said the pre-feasibility study outlined an open pit and underground development strategy that is “technically feasible and delivers a positive economic outcome”.

Southern Gold managing director Nanette Anderson said the study was an important milestone for the company, putting it in a strong position to fast-track the development of the mine subject to securing financing and regulatory approvals.

“Cannon has a number of significant competitive advantages in that the mineralisation starts close to the surface and can be extracted through an efficient open/pit underground operation”, Anderson said.

“This combined with its location close to a number of existing milling facilities in the Kalgoorlie region give us the ability to consider a low CAPEX, fast track development pathway based on a toll-treament scenario.”

Southern Gold has indicated mining operations at Cannon could start within the first half of 2014.


To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.