Phoenix Gold encounters encouraging mineralisation at Castle Hill

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THE DRILL SERGEANT: Phoenix Gold (ASX: PXG) has received early results from a drilling program the company recently commenced at its Castle Hill gold project located in the Western Australian Goldfields, less than 50 kilometres from Kalgoorlie.

The results included intercepts of:

–    94 metres at 2.6 grams per tonne gold from 88 metres;

–    8m at 2.4g/t gold from 74m;

–    5m at 2.2g/t gold from 142m;

–    56m at 0.9g/t gold from 79m;

–     38m at 0.8g/t gold from 161m; and
 

–     20m at 0.8g/t gold from 88m.

 

Castle Hill Stage 1 cross section. Source: Company announcement

 

“This result is by far the most significant and largest gram-metre intercept at Castle Hill and reinforces the potential strike and at depth,” Phoenix Gold managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“The project continues to exceed our expectations and is only 35 minutes’ drive from Kalgoorlie-Boulder.

“We now look forward to releasing the rest of the assays in due course and updating the geological model for Castle Hill Stage 1 in the March Quarter next year.”

The current Castle Hill Resource estimate stands at 21.71 million tonnes at 1.5g/t gold for 1.6 million.

Phoenix Gold said the Resource extends to a depth of 85m below surface and is anticipated to be updated this Quarter with the results from diamond drilling the company completed in September.

A further Resource upgrade with these new results is expected in the March Quarter 2013.

Phoenix completed a program of 11 diamond drill holes at Castle Hill Stage 1 in November, which consisted of a combination of extensional drilling and infill drilling to provide improved geological confidence for the company to bring mineralisation into resource and convert Inferred material to the Indicated category.

The company said the latest results, combined with diamond drill results it announced in September have demonstrated the potential of the mineralisation to grow significantly at depth.