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

Jul. 10, 2013 12:54 AM ET

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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.

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