Below from Mlx quarterly to answer your question.
CANON GOLD MINE (MLX 50% PROFIT SHARE)MLX has a financing and profit sharing agreement with Southern Gold Limited (SAU) over the Cannon Mine at Bulong in Western Australia. Pursuant to this agreement, MLX manages all technical aspects of the mining operation as well as funding all costs involved with the operation of the mine. All ore from the mine is batched processed through the Jubilee Mill at SKO and all revenue first goes to repay costs. On the completion of mining surplus funds are split on 50:50 basis (the profit share). MLX has made loan funds available to SAU of up to $2.5 million to fund its other working capital requirements. The loan funds earn interest at 8% per annum and are secured by a mortgage over the Canon tenure. To date SAU has drawn on $1 million of these loan funds.Mining has been underway at Cannon since September 2015. The current mine plan will see mining and processing continue until February 2017, after which assessment of underground mining opportunities will take place. Mining undertook the major cut-back, funded by MLX during the quarter. With major expenses and only one process run for 2,095 ounces produced, actual costs per ounce for the quarter were high, but significant ore remains on stockpile.
The pit is about to enter its glory period in the ensuing six months with lower strip ratios and much higher grades. Gold production and total costs of approximately A$700 per ounce are expected for the remainder of the ores.
Note:...'The pit is about to enter it's glory period in the ensuring six months'.....
Move that dirt....
