Southern Gold (ASX:SAU) holds the mantle as Australia's newest gold producer from its wholly-owned Cannon Gold Mine, located 35 kilometres east of Kalgoorlie in Western Australia.
The company is on track to generate between $12 million and $15 million of cash in next 18 months.
Mining is at an open pit, with the potential for underground in future years. Drilling is currently looking to extend mine life.
Over 16,000 tonnes of ore was processed at 2.42g/t gold in the first 6 days of the initial treatment campaign, shipping 1125 ounces following a recovery of 89%.
The open pit mine is being financed and operated by development partner Metals X (ASX:MLX) in a profit share arrangement, which after costs are split 50 / 50.
Cannon ore is being processed through Metals X’s Jubilee Mill, 35 kilometres from Cannon by haul road.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.