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Mining starts at Cannon

Mining starts at Cannon

Photo by Bloombeg

11th August 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Mine operations have started at the Cannon gold mine, in Western Australia, owner Southern Gold reported on Tuesday.

Project partner Metals X has been contracted to conduct all mining, haulage and processing activities associated with the development of the Cannon mine and operations have now begun at the Stage 1 openpit mine, which would see some 152 000 t of ore mined, at an average diluted grade of 3.1 g/t gold, containing some 15 000 oz of gold, with 13 500 oz of gold recovered.

Mining would take place over the next four to five months and ore from the Cannon mine would be processed at Metal X’s Jubilee mill facility, some 35 km away. The ore would be batch processed.

Meanwhile, Southern Gold said discussions with Metals X regarding the commercial arrangements for a larger pit development at Cannon were continuing.

The two companies had previously flagged the possibility of an expanded Stage 1 pit, which would see both the Cannon and Georges Reward deposits exploited in a single pit, using common infrastructure.

It was estimated that this ‘big pit’ scenario would extend the mine life of Stage 1 from the current nine-month operation to several years and could make Stage 2 underground options more viable.

The possibility of the underground operation was subject to further extension of the deposit, which would require drilling below the current limits of the resource.

Meanwhile, Southern Gold this week also started drilling at the Arsenal deposit, which is one of several satellite drill targets. The current drilling programme was designed to follow up on early positive indications and, hopefully, identify additional mineralisation outside of the Cannon resource.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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