Phoenix Gold's (ASX: PXG) shares are on the move upwards again today, and with good reason, as the self-funded explorer continues a successful aggressive gold exploration program in Western Australia.
Phoenix is trading 9.8% higher today at $0.225 on solid volume, which is well over double where the stock was changing hands around six-weeks ago.
Earlier in the week the company delivered some impressive metrics from the development of Stage 1 of the Blue Funnel Gold Mine, which is progressing in line with expectations.
Mining kicked off last month and ore processing has now commenced under a toll milling arrangement with FMR Investments at its Greenfield's Mill in Coolgardie.
Blue Funnel will deliver near term total net cash flow to Phoenix in excess of A$3 million, based on a gold price of A$1,350/oz. Blue Funnel is the second of a series of cash generating mines for the company.
This is a modest base price considering gold is currently fetching over A$1,550/oz.
The project required minimal start-up capital costs and Stage 1 delivers 86,000 tonnes at 3.5 g/t at a total cash cost of A$980 per ounce, with toll milling to produce over 9,000 ounces at 93% recovery.
Phoenix holds A$16 million in cash and continues to generate funds internally, which is extremely important in the current difficult fund raising markets.
The company is targeting a 4 million ounce resource with one million ounces in reserves by December 2013, while also being on track to complete a DFS before the end of the year.
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