1 Attachment(s)
Chart - 1 year weekly of PXG
We're now at the ATCH on a weekly basis, since listing late last year.
Still like PXG and looking to buy some more on weakness. Surely it can't stay at these low levels for too long though, not with the readily available margins for toll-treating so readily achievable it seems, and that only for starters to get heaps of cash in to drill the living daylights out of the best areas and move towards getting our own mill in due course.
Yet another prime gold project PXGOA stupid cheap @1700oz au
PHOENIX ADDS TO BROADS DAM GOLD PROJECT
Highlights
PHOENIX ACQUIRES 100% OF RED DAM RESOURCE FROM CARBINE RESOURCES LTD CARBINE QUOTES PROJECT AS CONTAINING OVER 147,000 OUNCES (SEE NOTE A) CONSIDERATION EQUIVALENT TO $13/OZ PLUS ROYALTY MOST RECENT DRILLING IN 2007 PRODUCED HIGH GRADE RESULTS
PROJECT AREA OPEN ALONG STRIKE AND AT DEPTH EXTENSIONAL DRILLING PLANNED FOR MARCH QUARTER 2012
Overview
Phoenix Gold Limited (ASX: PXG, “Phoenix”) is pleased to announce it has reached agreement with Carbine Resources Limited (“Carbine”) to purchase a 100% interest in Carbine’s Red Dam Gold Project in Western Australia (Figure 1).
Figure 1: Red Dam project within Phoenix tenements
Page 1 of 4
Phoenix Gold Limited ASX: PXG, PXGO, PXGOA
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@phoenxgold.com.au
The Red Dam resource is located on the Carbine-Telegraph shear in close proximity to the Zuleika shear in the heart of the rich Eastern Goldfields of Western Australia (Figure 2). The Project lies immediately adjacent to Phoenix’s Broads Dam and Carbine Projects (Figure 1). The Red Dam Project covers in excess of 270ha.
Carbine has quoted Red Dam as containing over 147,000 ounces of gold at 2.5g/t (Note A). The most recent drilling reported on the Project was in 2007 and the results contained significant intercepts from both infill drilling and drilling outside the existing mineralised envelope. These results as published by Carbine (Note C) on 5 July 2007 included:
5 metres at 44.07g/t gold from 32 metres
14 metres at 8.27g/t gold from 97 metres
18 metres at 4.88g/t gold from 76 metres
10 metres at 5.29g/t gold from 138 metres
9 metres at 5.73g/t gold from 49 metres
10 metres at 4.45g/t gold from 111 metres
“The Red Dam resource sits near the convergence points of the region’s main shear zones and the potential to grow this Resource significantly has been demonstrated by the high grade intercepts outside the current resource envelope. We are very excited about getting additional drilling going and growing the project along strike and at depth,” Phoenix Managing Director Jon Price said.
very unloved A grade explorer...
Highlights:
TOLL MILLING CAMPAIGN AGREEMENT EXECUTED WITH FMR INVESTMENTS
ORE TREATMENT COMMENCED FROM CATHERWOOD SURFACE STOCKPILES
CASH FLOW GENERATED TO FUND FURTHER EXPLORATION AND MINE DEVELOPMENT
DRILLING PROGRAM ON TRACK WITH CASTLE HILL RESULTS EXPECTED IN DECEMBER
Overview:
Phoenix Gold Limited (ASX: PXG, “Phoenix”) is pleased to announce that haulage and processing of previously stockpiled ore from the Catherwood mine has commenced through FMR Investment’s (“FMR”) Greenfields mill (Figure 1). This follows the signing of a Toll Treatment Campaign Agreement with FMR in October.
The Greenfields mill is a private toll treatment facility located 25 kilometres south of Phoenix’s southern tenements and is well serviced by haul roads in all directions.
Under the terms of the agreement, Phoenix will deliver an initial 25,000 tonne ore parcel to the mill and will pay a cost plus toll treatment charge on a $A per tonne basis. The processing circuit has been configured to enable optimal conditions to achieve maximum recovery and minimal costs. Treatment of the ore will also provide valuable metallurgical information and confirm gold recovery values used in the Catherwood Mine Feasibility Study.
“This is a significant milestone for Phoenix as we produce our first gold and work towards becoming a self-funded explorer. The cash flow generated will enable further exploration and development of the first in a series of gold mines in our project pipeline,” Managing Director Jon Price said.
“We also look forward to working with the team at FMR to finalise the long term agreement that will provide Phoenix with milling options to maximise benefit and minimise haulage distances,” Mr Price said.
The FMR agreement follows the execution of a Memorandum of Understanding with Kalgoorlie Mining Company for the treatment of up to 300,000 tonnes per annum of Phoenix ore through the Bullant processing facility. The MOU was signed earlier this month and contemplates the preparation and execution of a binding agreement within 12 months.
Work continues on the 18 to 24 month drilling programme announced last month to increase the resource base at the Castle Hill and Broads Dam Projects before testing early-stage exploration targets principally within the Ora Banda – Grants Patch gold camp.
In the 2012 financial year, phase 1 of the programme consists of 32,000 metres of a combination of reverse circulation (“RC”) drilling for resource growth and rotary air blast (“RAB”) drilling for target generation in greenfields areas.
To date, 3,808m have been drilled at the Broads Dam project and 3,840m at Castle Hill with drilling continuing through the December Quarter. Results from the Castle Hill programme are expected to be released in December following data validation and QA/QC checks.
Project development work also continues on a number of advanced resources including the recently announced Catherwood Feasibility Study (August 1, 2011) and the Rayjax, Nazzaris, Blue Funnel and Outridge mines.
“Catherwood is likely to be the first significant mine development for us and we are working to obtain the necessary statutory approvals and make the final investment decision in the December Quarter,” Mr Price said.