JOHANNESBURG (miningweekly.com) – ASX-listed Southern Gold has advanced discussions with multiple parties over the financing and commercial arrangements for the development of the underground mine at the Cannon project, in Western Australia.
The gold explorer and producer expected to conclude the talks and align the arrangements with the finalisation of the underground study.
“An engineering and costing study has been completed with very positive results and is currently under external review,” the company said in a statement on Monday.
Southern Gold mandated an independent contractor to critically examine and optimise the proposed development scenario and refine the operational details prior to submission to the board for approval.
The results of the study will be released on completion of the review.
Meanwhile, Southern Gold expected assay results from multiple projects in Australia and South Korea over the next few weeks.
The collation and quality control and assurance of the Glandore drilling results are nearing completion, after drilling was completed and all assays received.
At Weolyum, the drilling and underground sampling results have been received for gold; however, the silver results require further assaying for high-grade silver in 30% of samples.
The repeat silver assay results are expected in about 10 days.
Significant progress has also been made at Project Generation, South Korea, with assay results expected in four to six weeks.