Phoenix Gold encounters high-grade gold at Red Dam

THE DRILL SERGEANT: Phoenix Gold (ASX: PXG) has encountered high-grade gold intersections from a drill program being carried out on the Red Dam gold project, part of the company’s Broads Dam project area.

The project is located in the Western Australian Goldfields, less than 40 kilometres from Kalgoorlie and approximately 12 km, by existing haulage road, from Phoenix’s Castle Hill project.

 

Red Dam project location and regional geology. Source: Company announcement.

 

The Red Dam Resource currently stands at 3.4 million tonnes at 2.1 g/t gold for 229,000 ounces.

Phoenix said it expects to announce a resource update in the June Quarter.

Mineralisation intercepted by recent drilling included:

–    6 metres at 97.5 grams per tonne gold from 256 metres;
 
–    7m at 12.7g/t gold from 42m;

–    3m at 17.3g/t gold from 42m;

–    12m at 4g/t gold from 42m;

–    3m at 14.8g/t gold from 134m; and

–    4m at 9g/t gold from 124m.

“These latest results from our Red Dam project clearly demonstrate the potential of this recent discovery to be a significant contributor to our eight to ten year mine plan being developed as part of our Definitive Feasibility Study due for completion in December this year,” Phoenix Gold managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“We have two core development assets in Castle Hill and Red Dam in a safe jurisdiction, close to major infrastructure and only a 30 minute drive from Kalgoorlie-Boulder.

“I am extremely encouraged by these latest exciting high grade gold intersections which further confirm that Phoenix is progressing into a significant new gold business in the goldfields region.”