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Dated: 14th January 2015
HIGHLIGHTS
PHOENIX'S MINERAL RESOURCES GROW BEYOND 4 MILLION OUNCESASX: PXG
Infill, extensional and validation drilling programmes completed at the Kintore, Red Dam, Burgundy and Castle Hill Stage 3 gold projects1
Updated resource modelling completed by independent consultants
Resource at Kintore grows to 686,000 ounces2
Castle Hill Stage 3 Resource more than doubles to 272,000 ounces2
Phoenix total Mineral Resources grow 6% to 4.02 million ounces2 comprising:
Mill feed of 54.2Mt at 1.7g/t Au for 2,913,000 ounces
Heap leach feed of 58.3Mt at 0.6g/t Au for 1,109,000 ounces
Updated open pit Reserve studies underway as part of the staged mine development plan and heap leach feasibility study
Project (Mill Feed) | Measured Mineral Resource | Indicated Mineral Resource | Inferred Mineral Resource | Total Mineral Resource | ||||||||
Mt | Au (g/t) | Au Oz | Mt | Au(g/t) | Au oz | Mt | Au (g/t) | Au Oz | Mt | Au (g/t) | Au Oz | |
Mick Adams/Wadi Kintore Castle Hill Stage 3 Red Dam Broads Dam Burgundy Kunanalling Ora Banda Carbine Zuleika North Stockpiles | 0.49 | 2.0 | 31,000 | 18.09 3.03 2.38 2.05 0.13 0.40 0.46 2.36 1.70 0.08 | 1.5 1.6 1.4 2.1 2.9 2.3 2.4 2.0 1.6 1.4 | 894,000 160,000 109,000 140,000 12,000 29,000 35,000 149,000 86,000 4,000 | 6.39 4.21 1.36 1.04 2.16 0.09 4.12 2.79 0.21 0.62 | 1.3 1.8 1.3 2.2 2.3 1.5 1.7 1.8 2.1 2.5 | 274,000 239,000 59,000 74,000 158,000 4,000 229,000 163,000 14,000 49,000 | 24.48 7.24 3.74 3.09 2.29 0.98 4.58 5.15 1.91 0.62 0.08 | 1.5 1.7 1.4 2.2 2.3 2.0 1.8 1.9 1.6 2.5 2.5 | 1,168,000 399,000 168,000 214,000 170,000 65,000 264,000 312,000 100,000 49,000 4,000 |
Total | 0.49 | 2.0 | 31,000 | 30.68 | 1.6 | 1,618,000 | 22.99 | 1.7 | 1,263,000 | 54.16 | 1.7 | 2,913,000 |
Project (Heap leach feed) | Measured Mineral Resource | Indicated Mineral Resource | Inferred Mineral Resource | Total Mineral Resource | ||||||||
Mt | Au (g/t) | Au Oz | Mt | Au(g/t) | Au oz | Mt | Au (g/t) | Au Oz | Mt | Au (g/t) | Au Oz | |
Mick Adams/Wadi | 1.04 | 0.6 | 22,000 | 21.54 | 0.6 | 400,000 | 10.98 | 0.6 | 198,000 | 32.52 | 0.6 | 598,000 |
Kintore | 6.68 | 0.6 | 131,000 | 7.87 | 0.6 | 156,000 | 14.55 | 0.6 | 287,000 | |||
Castle Hill Stage 3 | 3.80 | 0.6 | 68,000 | 2.01 | 0.6 | 36,000 | 5.81 | 0.6 | 104,000 | |||
Burgundy | 0.86 | 0.6 | 18,000 | 0.22 | 0.6 | 4,000 | 2.12 | 0.6 | 44,000 | |||
Red Dam | 1.89 | 0.7 | 44,000 | 0.97 | 0.7 | 23,000 | 2.86 | 0.7 | 67,000 | |||
Stockpiles | 0.48 | 0.6 | 9,000 | 0.48 | 0.6 | 9,000 | ||||||
Total | 35.25 | 0.6 | 670,000 | 22.05 | 0.6 | 417,000 | 58.34 | 0.6 | 1,109,000 |
Total Jan 2015 | 0.49 | 2.0 | 31,000 | 65.93 | 1.1 | 2,288,000 | 45.04 | 1.2 | 1,680,000 | 112.50 | 1.1 | 4,022,000 |
"When the business commenced we had 595,000 ounces in Resource and no Reserves, and now to have achieved a Resource position of over 4 million ounces including a current Reserve of over 1.1 million ounces in less than 4 years is a testament to the quality of the assets and our exploration team in this world class gold producing region," Managing Director Jon Price said.
"With stock work style deposits on the Kunanalling shear and high grade open cut and underground deposits on the Zuleika shear, we look forward to continuing our search for the next significant discovery with multiple high priority targets identified," Mr Price said.
Phoenix Gold Ltd
ABN 55 140 269 316
73 Dugan Street
PO Box 100
Kalgoorlie WA 6430
Phone +61 8 9021 2704
Fax +61 8 9021 3393
www.phoenixgold.com.au
info@phoenixgold.com.au
1 As announced on 27 May 2014 and 8 January 2015, 7 October 2014, 25 September 2014 and 16 September 2014 respectively
2 See also qualification and competent persons statement on pages 16 and 17 and Appendix 1, after depletion (Dec 2014)
Phoenix Gold Limited (ASX: PXG) ("Phoenix" or the "Company") is pleased to announce updated Mineral Resources for the 100% owned Kintore, Red Dam, Burgundy and Castle Hill Stage 3 gold projects. Infill, extensional and validation drilling programmes totalled 389 Reverse Circulation ("RC) holes for 33,468 metres completed during 2014. All data was validated and entered into the geological models for Resource evaluation by independent consultants Cube Consulting and Golder Associates.
Phoenix's total Mineral Resources (JORC 2012) now stands at 4.02 million ounces3 comprising:
Mill feed of 54.16Mt at 1.70g/t Au for 2,913,000oz
Heap leach feed of 58.34Mt at 0.60g/t Au for 1,109,000oz
This represents a 6% increase on the Mineral Resources of 3.8 million ounces as announced to the ASX on 4 February 2014 and allows for depletion from mining up to December 2014.
The projects are located on the highly prospective Zuleika and Kunanalling shear zones in the heart of the Western Australian Goldfields (Figure 1) less than 50 kilometres from the regional mining centre of Kalgoorlie.
Figure 1: Project locations, Resources summary and regional geologyPage 2 of 33
14th January 2015
3 see Table 1 on page 1 and also qualification and competent persons statement on pages 16 and 17 and Appendix 1, after depletion (Dec 2014)
Kintore Project4As announced on the 27 May 2014 and 8 January 2015, Phases 1 and 2 of the infill and extensional drilling programme was completed with 284 RC holes totalling 21,392 metres at the Kintore Project (Castle Hill Stage 2) (Figure 2). The aim of the programme was to test further extensions to the mineralisation to the south and east of the deposits and at depth, validate historic holes drilled in the 1980s and convert Inferred material into Indicated category for estimation of Reserves.
Figure 2: Kintore project (Castle Hill Stage 2) location and regional geologySignificant mineralisation intercepted included 8m at 18.7g/t Au from 72m; 3m at 40.2g/t Au from 16m; 2m at 55.8g/t Au from 76m; 3m at 26.5g/t Au from 74m; 22m at 3.0g/t Au from 36m; 12m at 5.4g/t Au from 26m; 2m at 31.5g/t Au from 79m, 19m at 3.0g/t Au from 15m and 12m at 4.6g/t Au from 37m.
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4For further details of the Kintore drilling and associated JORC tables (sections 1 and 2), please refer to the announcements released to the ASX on 27 May 2014 and 8 January 2015. See also Appendix 1 for section 3.
14th January 2015
The drilling extended the boundary of the gold mineralisation to the south (20 to 25m) and at depth where it remains open along strike and at depth. The gold mineralisation also remains open to the west and east of the drilled area. The drilling also confirmed the tenor of gold mineralisation in some of the historic drilling.
Figure 3: Kintore project (Castle Hill Stage 2) cross section5The updated Mineral Resource (JORC 2012, see Table 1 on Page 1) for Kintore now stands at 686,000 ounces, up 37% from the 499,000 ounce Resource published in February 2014 and comprises:
Mill feed of 4.72Mt at 1.70g/t Au for 408,000oz
Heap leach feed of 14.94Mt at 0.60g/t Au for 295,000oz
Kintore Geological Summary
The Kintore project, also known as Castle Hill Stage 2, covers the northern margin of the syn-tectonic granitoid intrusion named the Kintore Tonalite. The northern margin of the tonalite contacts a sequence of tholeiitic and high-magnesian basalts, which have been metamorphosed to hornfels facies adjacent to the contact. The Kintore tonalite is a fine to medium grained massive granitoid of granodioritic composition which is elliptical in plan. The 2 km wide tonalite intrudes ultramafic rocks of the Burbanks Formation in the Telegraph syncline to the east, and mafic/ultramafic rocks of the Burbanks and Hampton Formations to the west. In the Kintore project area the tonalite is 1.78 km in width. The mineralisation at Kintore delineated to date is predominantly orientated E-W with a southerly dip and is 800m in strike length and has a 400m horizontal width.
14th January 2015
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5 For further details of the Kintore drilling and associated JORC tables (sections 1 and 2), please refer to the announcement released to the ASX on 27 May 2014 and January 8 2015. See also appendix 1 for section 3.
Phoenix Gold Limited issued this content on 2016-01-14 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-13 05:11:07 UTC
Original Document: http://www.phoenixgold.com.au/assets/public/files/Total Resources update_140115_FINAL.pdf