Proactive Investor's  Instablog

Phoenix Gold (ASX: PXG) continues to build its gold ounce bounty in the heart of the rich Eastern Goldfields of Western Australia.

Hosted within the Broads Dam gold project, the Red Dam deposit contained metal has increased by a third to 3.44 million tonnes at 2.1 grams per tonne (g/t) gold for 229,000 ounces, with nearly two thirds in the Indicated category.

Importantly - mineralisation remains open at depth and along strike.

The impact from the increase is that Phoenix's global resource has now increased to 29.8 million tonnes at 1.8g/t gold for 1,738,000 ounces - but this could be just the beginning.

The opportunity to pass the milestone 2 million gold ounce mark in the near term is a very real possibility for Phoenix, with further resource upgrades at Castle Hill expected within weeks.

Jon Price, managing director, said that the Red Dam Resource is shaping up as a significant contributor to the company's large scale mining pipeline that will supplement the base load Castle Hill project.

"As part of the Broads Dam project, Red Dam is only 12 kilometres by existing haul road from the Castle Hill project which, pending our feasibility studies, is the most likely location of a milling facility."

Phoenix Gold expands strategic foothold

Phoenix's company strategy is to transition to a mid-tier gold developer and producer in the medium term, with the company making another step forward on this path just last month with a strategic acquisition.

The company has entered into an agreement to wholly acquire the Kintore Gold Project, which adjoins its 10.99 million tonne at 1.6 grams per tonne for 559,000 ounces of contained gold Castle Hill project.

Highlighting the potential to define a major new gold camp in the region, ongoing drilling continues to extend the Castle Hill gold mineralisation, which is open in all directions.

The acquisition helps Phoenix to re-consolidate landholdings on two of the most well-endowed shear zones in the Western Australia goldfields - being the Zuleika and Kunanalling shear zones northwest of Kalgoorlie.

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