Phoenix Gold Resources now over 2.5M ounces
THE DRILL SERGEANT: Phoenix Gold (ASX: PXG) has increased the company’s total Mineral Resources at the company’s Castle Hill project to 45.35 million tonnes at 1.7 grams per tonne gold for 2.52 million ounces.
The company indicated this figure represents an increase of 324 per cent since it acquired the project in 2010.
Recent upgrades to the Resources are a result of drilling campaigns completed in 2012 at the Castle Hill, Broads Dam and Telegraph gold projects in the Western Australian Goldfields, near Kalgoorlie – Boulder.
Project location, Phoenix tenements and development centre. Source: Company announcement
“To have grown the Resource beyond 2.5 million ounces in under two years is a testament to both the quality of the assets and the dedicated geology team that has continued to deliver consistent results,” Phoenix Gold managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.
“The latest Castle Hill and Broads Dam drill results further demonstrate the potential of both these projects to become multimillion ounce gold camps.
“Phoenix is now well funded to accelerate the large drilling programs and complete the definitive feasibility study on our core projects by December 2013.
“Next year will be a company defining year for Phoenix with significant resource growth expected together with a detailed economical evaluation to progress to mine development and construction of a standalone processing facility.”
Phoenix completed its first diamond drilling program at Castle Hill in September testing for extensions to mineralisation beneath the resource envelope that sits 85m from surface.
The company announced results from the drilling earlier this week.
The drilling was successful in demonstrating continuity of mineralisation at depth below Castle Hill Stage 1 and to confirm the structural geology interpretation of this large stock work system.
The Castle Hill Resource now stands at 23.54 million tonnes at 1.6g/t gold for 1,178,000 ounces.
A maiden drilling program was completed at Telegraph in August, which defined mineralisation over a 3km strike length that remains open along strike and at depth.
The maiden Telegraph resource totals 2.44 million tonnes at 1.6g/t gold for 122,000 ounces.
Phoenix commenced further drilling at Castle Hill in November as a part of a $20 million drill program aimed at defining the size of the project both laterally and at depth.
The drilling will be a combination of reverse circulation and diamond drilling with the first round at Castle Hill Stage 1 already completed and a 10,000m program commenced at Stage 2.