Phoenix Gold encouraged by first drilling at Red Dam

THE DRILL SERGEANT: Phoenix Gold (ASX: PXG) has been encouraged by the first results out of a drilling program conducted at the Red Dam gold project, which is part of the company’s Broads Dam project area.

Red Dam is located on the Zuleika shear zone in the Western Australian Goldfields, less than 40 kilometres from Kalgoorlie.

 

Castle Hill – Phoenix tenements and Red Dam project location. Source: Company announcement

 

The current Resource at Red Dam stands at 3.4 million tonnes at 2.1 grams per tonne gold for 229,000 ounces.

Phoenix commenced its first drilling program at Red Dam in January with phase 1 comprising 44 Reverse Circulation drill holes for 6,649m using two drill rigs.

The aim of the program is to extend mineralisation both along strike and at depth outside the current resource envelope, validate historic drilling data and to infill drill areas to enable the company to convert present resources into Indicated category for inclusion in a Definitive Feasibility Study.

Results from the drilling at Red Dam so far include:

–    10 metres at 9 grams per tonne gold from 39 metres;

–    3m at 17.3g/t gold from 42m;

–    12m at 4.0g/t gold from 42m;

–    10m at 4.6g/t gold from 127m;

–    18m at 2.1g/t gold from 52m; and

–    13m at 1.7g/t gold from 44m.

“Red Dam has clearly been our priority project within the Broads Dam project area with over 24,000 metres of drilling planned,” Phoenix Gold managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“So far we have drilled about a quarter of these planned metres.

“To intersect such spectacular alteration and veining outside the current resource envelope is very exciting.

“I am very much looking forward to seeing further results from this drilling program and believe Red Dam will become a significant high grade contributor to our mine plan being developed as part of the Definitive Feasibility Study.”

Phoenix Gold said it had now recommenced drilling at its Castle Hill gold project, with one rig at Stage 1 following up recent intercepts and one rig at Stage 2 continuing extension and infill drilling.

The company is staggering drilling programs around its different projects so it can determine each round of results to optimise each subsequent round of drilling.

Phoenix indicated it will also be commencing diamond drilling at Castle Hill next week.