Entering text into the input field will update the search result below

Phoenix Gold's Drill Results Boost Low Cost, Open Cut Potential At Castle Hill

Jul. 10, 2013 12:54 AM ET
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Short Only

Seeking Alpha Analyst Since 2009

Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of listed companies across the globe daily. We are one of the fastest growing financial media portals in the world. The group also operates hugely successful “investor forums” where three or four companies present to an audience of high net sophisticated investors, fund managers, hedge funds, private client brokers and analysts. Ian Mclelland founded Proactiveinvestors in 2006 as a way to channel his own views on companies small and mid-cap public companies. What started as a hobby quickly turned into a full time job as the website's readership exploded. One2One forums were added later in 2006, and within two years the company had expanded its operations into Canada and Australia. In 2009 the company expanded into Germany and finally into the US in 2010. Proactiveinvestors is now one of the fastest growing global financial media organizations in the world receiving more than one million visitors per month, with investor forums held across the globe on a regular basis.

Phoenix Gold's (ASX: PXG) latest drilling results has intersected broad zones of high grade mineralisation, with the program part of the +40,000 metres of diamond and reverse circulation drilling completed at Castle Hill stage 1.

Both infill drilling and depth extension drilling have been completed within the tonalite and have demonstrated the quality of the Resource and the high potential for conversion to Indicated category for the open cut mine reserve study.

Castle Hill is located on the western margin of the Coolgardie Domain of the Norseman-Wiluna Belt in Western Australia.

In-fill conversion drilling completed on a 50m X 25m grid at Castle Hill Stage 1 delivered high grade hits of: 18 meters at 6.3g/t gold from 71 metres; 23 metres at 4.0g/t gold from 177 metres; and 11 metres at 7.6g/t gold from 146 metres.

These intersection were supported by broader zones such as: 34 metres at 1.5g/t gold from 5 metres; 28 metres at 1.8g/t gold from 31 metres; and 24 metres at 2.0g/t gold from 141 metres.

The extensional drilling within the tonalite up to 260 metres in depth has now been completed, with the results demonstrate continuous mineralisation within the resource envelope.

Infill drilling confirms quality of the resource

Castle Hill already hosts: 23.54 million tonnes at 1.6g/t gold for 1,178,000 ounces, with the latest drilling showing mineralisation is continuing at depth and open in all directions, it is likely that the resource will continue to grow.

Jon Price, managing director, commented: "The infill drilling program is continuing to confirm the quality of the Castle Hill Stage 1 resource and improves the geological confidence enabling conversion of the Inferred material to the Indicated category for inclusion in the open pit reserve study.

"Stage 1 is shaping up to be a very large and very deep open cut mine with mineralisation starting at surface.

"This, in turn, enables low cost bulk open cut mining with low strip ratios for many years and this is just the first stage of what I believe will become a multi-stage gold camp."

At Castle Hill, the Kintore Tonalite (porphyry) is the main host to gold mineralisation complemented with high grade shear hosted lodes in the adjacent basalt.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.