Highlights from the latest infill and testwork drilling including: 40 metres at 10.2g/t gold from 65 metres; 30 metres at 5.1g/t gold from 99 metres; 21 metres at 6.4g/t gold from 77 metres; and 19 metres at 4.2g/t gold from 107 metres.
Resources at Red Dam have increased 15% to 4.5 million tonnes at 1.8g/t gold for 262,000 (at a 0.8g/t lower cut-off grade), but importantly 60% of metal content now in higher confidence Indicated Resource category (JORC 2012) totalling 2.5 million tonnes at 2.0g/t gold for 155,000 ounces.
The updated resource forms an integral part of the Definitive Feasibility Study, which is track for delivery in the March quarter 2014.
Adding to the potential of the project, the latest metallurgical tests yield recoveries of 91% to 94% with high gravity component.
Red Dam forms part of the Broads Dam project area, and is located proximal to the highly prospective Zuleika shear zone in the heart of the Western Australian Goldfields - less than 50 kilometres from the regional mining centre of Kalgoorlie.
Jon Price, managing director, commented: "The Red Dam gold deposit is an integral part of our Definitive Feasibility Study providing complementary higher grade feed to support the base load stock work at the Castle Hill project.
"It is envisaged that the Red Dam ore will comprise up to 30% of the mill feed as it has excellent metallurgy and is located only 12 kilometres east of the proposed processing plant on existing private haul roads."
The open cut reserve study is well underway with the company to also focus on further extensional drilling at depth to determine the potential to advance an underground mine.
This type of mine via a decline in the bottom of the open pit is typical of many projects in the area.
Total resources for Phoenix
The increase in the Red Dam resource puts Phoenix's total resources at 53.7 million tonnes at 1.7g/t gold for 2,989,000 ounces.
The bulk of the mineralisation in the Red Dam deposit is hosted in 3 sub-parallel north-west trending structures. There is also a blanket supergene horizon that lies directly above the lodes. The ore zones dip to the north-east at 50-70 degrees.
The importance of the upgraded resource at Red Dam is the increase in the confidence category to Indicated, enabling Reserve estimation.
The next key catalysts for Phoenix include the Definitive Feasibility Study which remains on track for completion in the March quarter 2014.
Further drilling is also planned at Red Dam next year to continue to define the underground potential once the open cut is completed as is typical of gold projects in and around the Zuleika shear zone.
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