THE BOURSE WHISPERER: The Castle Hill gold project of Phoenix Gold has had its resource increased to 21.7 million tonnes at 1.5 grams per tonne gold for 1.06 million ounces of gold.
The project is located on the Kunanalling shear zone in the heart of the Western Australian Goldfields less than 50 kilometres from Kalgoorlie.
Phoenix said the Resource update represents a four-fold increase since it originally acquired the project in 2010.
The Resource update at Castle Hill increases Phoenix’s Total Mineral Resources to 40.5 million tonnes at 1.7g/t gold for 2.24 million ounces.
This is a 276 per cent increase in resources in less than two years.
Phoenix pointed out that over 1.6 million ounces of the total Resource base is situated within a 15km radius of the central development centre at Castle Hill and is linked by existing haul roads in all directions.
Project location, Phoenix tenements and centre of development. Source: Company announcement
“Castle Hill is fast becoming the latest large scale gold discovery in Western Australia’s Goldfields and we have barely scratched the surface,” Phoenix Gold managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.
“The recent Kintore deal will give us near complete ownership over this large gold system and is clearly demonstrating its multi-million ounce potential.
“Our focus is now squarely on growing this resource below the current 80 metres and completing conceptual mining studies to determine optimal mining and processing routes including the construction of our own processing plant at Castle Hill.”
The upgrade includes the maiden Resource for Kintore that forms part of the Castle Hill gold system following the recent acquisition.
The company completed a program of data validation, re-logging, re-assaying and surveying in June and July to bring the new Resource in line with internal reporting standards and JORC classification.
Phoenix has now commenced conceptual mining studies including pit optimisations and designs, metallurgical reviews, schedules and economic evaluations using the updated resource model to determine optimal mining and processing pathways.
The company said these studies will assess the merit of including the construction of a standalone processing facility plant at Castle Hill.
Phoenix Gold considers Castle Hill to have the potential to be a near surface large scale open cut mine processed by conventional milling with excellent metallurgical recoveries – all within 50km of Kalgoorlie.