Recent drilling reveals high grades for gold-focussed company

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 03 Apr 2013   Posted by admin


EMERGING WA-focussed explorer Phoenix Gold has announced significant high grade intersections from a recent drill program at its Red Dam project near Kalgoorlie.
Red Dam, which is part of the Broads Dam project area less than 40km from Kalgoorlie and 12km from Phoenix’s Castle Hill project, has a resource of 3.4 million tonnes at 2.1 grams per tonne of gold for 229,000oz.
The company reported that significant mineralisation was found during the program, including 6m at 97.5g/t from 256m; 3m at 17.3g/t from 42m; and 7m at 12.7g/t from 42m.
The Red Dam project is close to the highly prospective Zuleika shear zone in the WA goldfields, and Phoenix reported that there was significant potential for the project to be developed as a high-grade open cut and underground mine.
“These latest results from our Red Dam project clearly demonstrate the potential of this recent discovery to be a significant contributor to our eight to ten year mine plan being developed as part of our definitive feasibility study due
for completion in December this year,” Phoenix managing director Jon Price said.Mr Price said that the project was close to major infrastructure and only a 30 minute drive from Kalgoorlie-Boulder.
The company’s phase one drilling at Red Dam started in January with two rigs drilling a total of 6649m.
Phoenix reported that it planned to drill another 18,000m in the June quarter and a feasibility study and investment decision for Red Dam, including construction of a 2 million tonnes per annum processing plant, was scheduled for December.
Phoenix has land holdings on the Zuleika and Kunanalling shear zones northwest of Kalgoorlie. Its Castle Hill project is its flagship asset with, “the potential to become a multi-million ounce gold mine with excellent metallurgy and close to all major infrastructure”, a company statement said.
Phoenix reported that it was focussed on the growth of its resources, complete feasibility studies on its core projects, and undertaking self-funded exploration of its advanced mining projects.


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