THE DRILL SERGEANT: Kalgoorlie-based Phoenix Gold has increased its total Mineral Resources to 29.6 million tonnes at 1.8 grams per tonne gold for 1.68 million ounces of gold.
This represents an increase of 72 per cent to the resources when Phoenix released its Prospectus for its Initial Public Offering and an increase of 182 per cent from when the company initially acquired the project.
The recent increase comprises maiden Resources at Rayjax and Magdala.
It also increases Castle Hill through a recent drilling program and by acquisitions made within the Broads Dam area during the year.
Project location and Phoenix tenements. Source: Company announcement
The company said it anticipates further Resource growth once it has received results from a 70,000 metre drilling program currently underway at Broads Dam, Castle Hill and Ora Banda, which commenced in September.
Phase 1 of this program comprises 32,000 metres to be completed in the 2012 financial year through a combination of reverse circulation (“RC”) for resource growth and rotary air blast (“RAB”) for target generation in greenfields areas.
Phoenix is expecting drill results from Castle Hill to be ready by December with a further Resource update based on all recent drilling anticipated in the March Quarter next year.
Phoenix Gold managing director Jon Price said the Resource upgrade to 1.68 million ounces had given the company confidence to continue to push ahead with its strategy.
“This result is an important milestone for Phoenix, not just because we have shown an ability to deliver on our promises, but because we have clearly demonstrated the upside potential of the project area and confirmed the strategy to grow the Resources further to build the platform for a significant mining project pipeline,” Price said in the company’s announcement to the Australian Securities Exchange.
“Phoenix is now in a strong position to generate early cash flow from treatment of stockpiles and self-fund development of a number of mines commencing with Catherwood in early 2012.
“This cash flow will allow us to continue our targeted greenfields and brownfields exploration programs while minimising dilution for Phoenix shareholders.”