Southern Gold (ASX:SAU) has now appointed Simon Mitchell as managing director, as the company looks to develop the Cannon Project under an agreement with Metals X (ASX:MLM).
Earlier in the month the company announced a 50% increase to the Cannon Project’s forecast free surplus cash flow as grade control and sterilisation drilling commences.
Cannon is located 30 kilometres from Kalgoorlie in Western Australia, and is therefore in a region well supported by existing infrastructure and experienced workforce.
At the time the company said that the project’s PFS free cash flow forecast value reaches A$18.5 million as A$ gold price hits A$1500/oz.
These economics would have improved further in recent weeks, with gold now valued at over A$1600 an ounce.
Southern Gold secured finance for the project in November 2014 through an agreement with Metals X, who will finance and manage all services required for mining, haulage and treatment of ore from the Cannon deposit, for a 50:50 profit share.
Add to My Watchlist
What is My Watchlist?
