Ann: Strategic agreement executed over Cannon Gold Mine, page-11

Interesting discussion Jogo & 1982.

IMO developing Cannon, while looking attractive on paper, will have similar issues as developing the open pit:

 - SAU are explorers with limited mining experience (i.e one BOD member), and I suspect no staff with mining engineering experience.

 - The nearest mills are owned by SLR and a private(?) concern at Lakewood near Kalgoorlie

 - The Higginsville mill (WGX) is likely to be out of the question due to distance as the SKO mill is now owned by NST

 - A toll treating agreement is always to the mill owners advantage. Timing of treatment may also be an issue.

 - Mining is always capital intensive with large outlays upfront before any income is derived. For short life operations this can be a potential risk if everything doesn't go exactly to plan. 

 - The ground conditions shown in various pictures and the need to extract the last ore from the pit by an adit suggests that u/g development wont be cheap.

Takeaway? A similar arrangement that was entered into for the open pit is likely to be necessary, which in turn will likely mean either a hefty c/r or giving up a chunk of the project.

As usual DYOR!