Phoenix Gold increases Castle Hill Resource

THE DRILL SERGEANT: Phoenix Gold (ASX: PXG) has announced a 75 per cent increase to the Mineral Resources for Stage 1 at the company’s Castle Hill gold project.

The project is located on the Kunanalling shear zone in the heart of the Western Australian Goldfields, less than 50 kilometres from Kalgoorlie in Western Australia.

 

Phoenix tenements, project location and Total Resource summary. Source: Company announcement

 

The company’s updated September 2013 Mineral Resource for Stage 1 contains 21.79 million tonnes at 1.6 grams per tonne gold for 1,137,000 ounces (at a 0.8g/t lower cut-off grade).

Phoenix Gold indicated that over 70 per cent of contained metal is now in the Indicated Resource category.
 
The combined Resource for Castle Hill now comprises 30.95 million tonnes at 1.6g/t gold for 1,616,000 ounces, representing a 37 per cent increase in contained metal with 52 per cent in the Measured and Indicated Resource categories.

The Resource has a maximum depth from surface of 190metres.

“Further validation of the size and quality of the Castle Hill gold deposit comes from this independently verified resource update for Stage 1,” Phoenix Gold managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“It clearly demonstrates the robust nature of the mineralisation that is conducive to large scale low cost open cut mining from surface, has excellent metallurgy and is in close proximity to the major mining centre of Kalgoorlie-Boulder.

“As we continue to grow the resource along strike and at depth of Stage 1, Stage 2 and beyond, the updated geological model will be the subject of an independent open pit reserve study.

“This will deliver an updated reserve position, mining schedule and development plan as part of the definitive feasibility study on track for completion in December 2013.”