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Phoenix Gold in pre-open pending financing initiative announcement

Phoenix Gold (ASX: PXG) has been granted a trading halt by the ASX pending the release of a financing initiative, with the company's shares placed in pre-open.

Phoenix has not yet indicated where the potential funding injection will be allocated, but the company is currently in a very interesting position and earlier in the month intersected bonanza grade gold at the highly prospective Castle Hill Project in the Goldfields region of Western Australia.

Highlights included:

- 10 metres at 9.92 grams per tonne (g/t) gold from 18 metres, including 2 metres at 27.36g/t gold;
- 15 metres at 6.63g/t gold from 39 metres, including 2 metres at 39.25g/t gold; and
- 8 metres at 7.32g/t gold from 60 metres.
 
The company is already looking to upgrade the current 10.99 million tonnes at 1.6 g/t gold for 559,000 ounces in the March quarter of 2012.

The halt will last until the earlier of the announcement being made to the market, or the open of trade on Tuesday 13 December.