The Cannon gold project, in Western Australia, was 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, told shareholders on Tuesday that the revised base case at Cannon has resulted in an improved overall gold recovered estimate, lower operational costs on a per-ounce basis, and higher net cash generation.
