Phoenix Gold drills deep results at Castle Hill

/in /by

THE DRILL SERGEANT: Phoenix Gold (ASX: PXG) has received results from an infill and depth extension drilling program at Stage 1 of the company’s Castle Hill gold project located in the Western Australian Goldfields, less than 50 kilometres from Kalgoorlie.

The Stage 1 Resource (JORC 2012) currently stands at 21.8 million tonnes at 1.6 grams per tonne gold for 1,137,000 ounces.

The total Castle Hill Resource stands at 30.9 million tonnes at 1.6g/t gold for 1,616,000 ounces.

Recently-received results from drilling include:

109 metres at 1.8g/t gold from 7 metres;

82m at 1.4g/t gold from 140m;

24m at 4.8g/t gold from 120m;

112m at 1.0g/t gold from surface;

28m at 2.4g/t gold from 236m;

21m at 3.0g/t gold from 187m;

16m at 3.3g/t gold from 102m; and

7m at 5.7g/t gold from 213m.

Phoenix explained the aim of the program was to test the mineralisation below the current resource envelope from 200m depth to 500m.

 

Castle Hill Stage 1 cross section 2-2. Source: Company announcement

 

“Phoenix was the first to drill below 80 metres in this area and we have now drilled down to 500 metres with the results continuing to demonstrate the scale of this very large gold system,” Phoenix Gold managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“This entire area within the WA Goldfields has had surprisingly little modern exploration and we continue to be encouraged by the results.

“The resource continues to grow along strike and at depth of Stage 1, Stage 2 and beyond, and the updated geological models are now the subject of an independent open pit reserve study.

“This will ensure the delivery of an updated reserve position, mining schedule and development plan as part of the definitive feasibility study due for final completion in early 2014.”

Phoenix said the results had demonstrated mineralisation extends in excess of 200m below previous drilling.

Vein intensity, mineralogy and tonalite composition all indicate the mineralisation continues to remain open at depth.

The shallower infill results provide further confirmation of the robust nature of the resource from surface.

In addition, the results indicate grades increasing with depth.

Email:
info@phoenixgold.com.au

Website:
www.phoenixgold.com.au