Cannon performs better than expected
PERTH (miningweekly.com) – The Cannon gold project, in Western Australia, is delivering above expectations, with the project’s net profit guidance increasing from A$14.9-million to A$17.2-million on the back of higher-than-budgeted metallurgical recovery rates and a revised ore block model.
ASX-listed Southern Gold, which holds a 50% interest in the project, reported on Tuesday that the revised base case at Cannon had resulted in an improved overall gold recovered estimate, lower operational costs on a per-ounce basis, and higher net cash generation.
Tonnes mined increased from the 479 000 t in the previous base case to 542 000 t, while the life-of-mine recovery rate improved from 86.3% to 89% and cash costs decreased from A$1 037/oz to A$995/oz.
“We are very pleased with the progress at the Cannon gold mine, with minimal schedule slippage, even with the high level of rainfall which has caused some disruption, and with good work being done by the Metals X team in pit and at the Jubilee mill,” said Southern Gold MD Simon Mitchell.
The Cannon openpit is now entering a phase where the majority of the gold ore will be extracted and processed over the next seven months. Mitchell said that assuming no disruptions to the mine schedule were reported, openpit mining would complete during December this year with stockpiled ore to be processed until the end of March 2017.
The Cannon project is expected to deliver a total 51 543 oz of gold during its mine life, with 39 469 oz delivered in the 2017 financial year.
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