Southern Gold has started mining operations at Cannon Gold Resource in Kalgoorlie, Western Australia.

The company has begun Stage 1 Open Pit operations, which is expected to mine approximately 152kt of ore at an average fully diluted grade of 3.1g/t Au.

For the processing and haulage activities, Southern Gold has hired Metals X on a 50/50 profit sharing basis.

Southern Gold said that mining activity will continue over the next 4-5 months and ore from Cannon will be processed through Metals X Jubilee mill facility.

Southern Gold managing director Simon Mitchell said: "Southern Gold has hit a few key milestones this week, in what is the culmination of several years’ work on the part of the Southern team.

"It is great to see ‘big yellow’ mining equipment deployed to site and the first unearthing of ore geology in the pit. In addition we have a huge opportunity when it comes to the possibility of a larger open pit operation as well as the longer term underground potential."

The gold miner also expects Stage 1 Open Pit to be superseded by a new larger pit development plans.