Phoenix Gold heaps happy with Heap Leach PFS results

THE BOURSE WHISPERER: Phoenix Gold (ASX: PXG) has received results of a Definitive Feasibility Study (DFS) carried out on heap leaching lower grade ore at the company’s Castle Hill gold project near Kalgoorlie in Western Australia.

The company reported the DFS has demonstrated improved project economics and strong returns for the project with all in sustaining cash costs of $913 per ounce.

The DFS has forecast total gold production of 191,900 ounces over an initial seven year mine life with annual production of 27,000 ounces.

The anticipated development time to first production has been set at 12 to 15 months with total upfront capital costs expected to come in around the $34.4 million mark.

Working on a gold price of $1500 the study predicts total revenue of $287.8 million.

“This DFS supports heap leaching of lower grade material mined and stockpiled from our core projects and has always been a key part of our strategy,” Phoenix Gold managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“The results of this study clearly demonstrate strong economic returns at current gold prices.

“We now look forward to finalising project financing and progressing towards commencing the relocation, refurbishment and recommissioning of the recently acquired plant, together with the construction of the heap leach pads and associated infrastructure over the next 18 months.”

Phoenix explained the Heap Leach DFS assessed the economics of processing lower grade ore mined at Castle Hill and nearby satellite pits at a heap leach facility.

The Study was initiated after the company’s $2 million acquisition of a 2 million tonnes per annum standalone heap leaching plant from St Ives Gold Mines in July 2014.

The DFS also incorporated increased Mineral Resources announced by Phoenix in January 2015.

Under the DFS, current Mineral Resources for heap leaching totals 58.3 million tonnes at 0.6 grams per tonne gold for 1.1 million ounces and current Ore Reserves for heap leaching totals 15 million tonnes at 0.6g/t gold for 280,450 ounces.

Email: info@phoenixgold.com.au

Website: www.phoenixgold.com.au