Phoenix's reserves have swelled to 1.16 million gold ounces at 1.16 g/t gold average with resources now standing at 3.8 million gold ounces.
Independent resource modelling, open cut reserve and carbon in leach studies have been completed at the Red Dam, Kintore (Castle Hill Stage 2) and Carbine gold projects.
Importantly the company is gearing up for the release of the Definitive Feasibility Study and associated financial analysis during the current quarter.
Phoenix's projects are located on the highly prospective Zuleika and Kunanalling shear zones, less than 50 kilometres from the regional mining centre of Kalgoorlie.
Jon Price, managing director, commented: "The release of these latest results is testament to the quality of the project area that continues to deliver and it is extremely pleasing for Phoenix to have an increased Resource position of 3.8 million ounces and Ore Reserves approaching 1.2 million ounces.
"Both Red Dam and Kintore are an integral part of the 8-10 year mine plan being developed and these new results continue the positive momentum for the Definitive Feasibility Study, which is due for release shortly."
The Kintore study assumed conventional CIL processing of high grade at the proposed Castle Hill mill and heap leaching of lower grade ore through dedicated facilities at the Kintore mine site. The maiden Ore Reserve comprises:
- Mill feed at a 0.8g/t gold cut off of 2.0 million tonnes at 1.33g/t gold for 86,100 ounces; and
- Heap leach feed at a 0.4g/t cut off of 2.6 million tonnes at 0.54g/t gold for 46,000 ounces.
The company's projects are well located in the WA Goldfields.
Phoenix total Ore Reserves increased by 9.5% to 1.16 million ounces. Castle Hill Stage 1 (Mick Adam and Wadi Pits), Red Dam and Castle Hill Stage 2 (Kintore pit) underpin an 8 -10 year initial mine and mill schedule.
In short, Phoenix has a number of project development options not open to many development companies available including:
- Construct a new centralised plant at Castle Hill for all of the company's projects.
- Castle Hill Stage 1 development with Norton Gold Fields Ltd under an existing agreement with no up-front capital or operating contribution from Phoenix.
- Utilise spare regional milling capacity for rapid near-term cash flow from projects outside Castle Hill Stage 1.
Ultimately these options will be the subject of a detailed financial analysis as part of the DFS with a focus on maximising shareholder value.
Holding cash and bullion on hand at 31 December 2013 of A$4.6 million surely paves the way.
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