Phoenix Gold - PXG

[trackers]

Phoenix Gold - PXG

JORC: ~1million ounces Au @ 1.7g/t

$16.5mil market cap (some sites report 11mil m/cap as only 50mil shares quoted, @ 22c)
$2.8mil cash
=EV $13.7mil ($13 p/ounce)

- 19k ounces in stockpiles

Relatively new listing (Dec2010).. thanks to duncanjones and Denpal for mentioning this under the radar play on the low ev thread!


Current share price, 21-22c. High leverage through:

PXGO 20c ex 01/2012
PXGOA 25c ex, 11/2014

Company wants to start small-scale mining next quarter in order to generate near-term cashflow, and feasibility studies are sufficiently along the track to support this:


Business Development (from quarterly):

Assessment of 12 small scale mining projects (“SMP’s”) during the Quarter identified 5 higher priority
SMP’s that have the potential to generate internal cash flow for the Company. Scoping studies
were completed on those 5 highest priority SMP’s to test their economic viability. Following positive
indications from these studies further, more detailed, grade control drilling commenced late in the
Quarter. This drilling is being undertaken to confirm the geological models and allow detailed mine
design work to be completed and will continue towards the middle of the June Quarter.
It is anticipated that detailed planning and evaluation of these 5 SMP’s will be completed in the June
Quarter and will enable the Company, subject to economics, to commit to commencement of small
scale mining before the end of the June Quarter.

http://www.stocknessmonster.com/news...E=ASX&N=539505
---

These guys have got some nice reserves, good land and a workable plan to achieve cashflow... At an EV of $10 per ounce the downside is protected, with very nice upside provided by oppies.

Holding: PXGO @ 5c, acquired a couple weeks ago...

This, alongside YTC, is my holding I'm most excited about. Cheers again to denpal and duncanjones for bringing this one up

[Aotea]

Am loving the prospect here...am holding the OA oppies, 2014 expiry!!
Cant got wrong, expect 50c by xmas.

[skeet]

Thanks for the heads up trackers needed something new to look into as IOG hasn't been liked by the market.

Quick glance over this:
http://www.phoenixgold.com.au/media/...ion%5B1%5D.pdf

I read:
"Directors Dale Rogers and Jon Price are major shareholders in PXG, each holding an 8.8% interest in the company."
I personally like it when DIR's have a good stake in a company.

[trackers]

Hey Skeet,

Yeah dir's having skin in the game helps - Its no surprise that they're looking at near-term cashflow opportunities, rather than just sit for a couple years relying on cap raises....PXG needs to grow one of its deposits to the >500k ounce mark I think before mr market will sit up and take notice... And going by the announcements such as the Castle Hill one (http://www.stocknessmonster.com/news...E=ASX&N=534446) I think we'll see something like this in the next few months

IOG's a funny one ey? - They're another one with a great plan to actually get near-term cashflow and grow organically, but it'll probably take a while to develop (instead of some of these big hit or miss fly be nighters out there) - I hold some in the theory that they'll be a T/O target some stage down the track

[trackers]

PXG JORC reserve increases to 1.1million ounces..

http://www.stocknessmonster.com/news...E=ASX&N=542304

There's some decent discussion on HC about it:

http://www.hotcopper.com.au/search_d...&symbolid=3914

[yabster]

Got on board yesterday with a few pxgo's @ .048 and a few pxgoa's @ .069 - bit more comfortable with the long dated options.

[denpal]

Nice ann. - it's not easy to find gold juniors with real potential at such a low EV and share price! I'm just keeping an eye on the options in case anyone has to sell in a hurry. I don't think PXG is on the market's radar yet.

[trackers]

And thats not all folks.... Quarterly shows good results from drilling at Outridge, outside the existing resource, and mentions that these will be JORC'd in the June quarter also - So JORC will be increasing again within a month....

High grade results were received from both the Outridge and Kiora deposits both along strike, as width
extensions, and some depth extensions. High grade results outside the current Outridge Resource included:

• 13 metres at 7.4g/t au from 57 metres, including 1m @ 83.9g/t.
• 6 metres at 6.9g/t au from 67 metres, including 3m @ 12.4g/t.
• 2 metres at 6.0g/t au from 23 metres.
• 11 metres at 4.1g/t au from 89 metres, including 1m @ 25.4g/t.
• 11 metres at 2.4g/t au from 89 metres, including 1m @ 12.4g/t.
• 5 metres at 2.3g/t au from 26 metres.
• 11 metres at 2.0g/t au from 52 metres, including 1m @ 7.2g/t.
• 15 metres at 1.3g/t au from 77 metres.

This drill programme has demonstrated considerable width extensions to the Outridge deposit and
importantly demonstrated new mineralisation between the Kiora and Outridge deposits

The strike length of Castle Hill following the Outridge and Kiora drilling, has extended to over 1.4
kilometres. Castle Hill remains very sparsely drilled below a depth of 80 metres.

A revised resource estimate for Castle Hill, based on the drill programme at Outridge, is expected to be
completed and announced in the June Quarter.

A pre-feasibility study for Castle Hill will be completed in the June Quarter to ensure exploration
continues to be focussed in the best locations of what is a large Project area and to complete a
preliminary assessment of various development alternatives.

http://www.stocknessmonster.com/news...E=ASX&N=539505

[trackers]

JORC resource increased to 1.39M oz

- >500k ounces at castle hill now (double previous est.)
- 4.9MT @ 1.79 g/t Au added to resource
- 2km strike, open all directions and at depth
- Total JORC resource now at 1.39M oz

Open along strike and only drill tested to average depth of 60metres - "Potential to become a very large gold mine"

http://www.asx.com.au/asxpdf/2011053...gh342cwqtt.pdf


Market cap is $12.5mil (excl. escrowed shares + options) or $18.1mil (incl. escrow and excl options)

[denpal]

Looking good trackers, bit more interest now by the market.