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Phoenix Gold Study Highlights Exploration Potential Of Zuleika Shear

Phoenix Gold (ASX:PXG) holds an extensive land holding on the Zuleika and Kunanalling shear zones northwest of Kalgoorlie in Western Australia, which is home to some of Australia's richest gold deposits.

Phoenix has now revealed the preliminary findings of a two year geological evolution study in the Zuleika Shear, which highlights the gold exploration potential of the area.

The study incorporates all geophysical, geochemical, aeromagnetic, structural, logging and assay data to build a 4D evolution model to understand the fluidisation pathways and identify and target gold bearing mineralisation.

The process has identified multiple targets within the company's 500 square kilometre tenure on both the Kunanalling and Zuleika shear zones.

Phoenix owns over 15 kilometres of strike on the Zuleika shear immediately north of the +6Moz Kundana gold field whereNorthern Star Resources (ASX:NST) are having considerable success.

Adding to the prospectivity of the area, Phoenix's tenure has had little to no exploration over the last 30 years and all drilling has been very shallow and not penetrated the cover material.

Three major target areas have been identified with the same geological setting as the Frog's Leg, Raleigh, Pegasus, Bullant and Rubicon high grade underground mines.

Jon Price, managing director, commented:

"While the focus has been on the large Castle Hill gold camp over the last few years, we have not forgotten about the significant exploration potential of our assets on the Zuleika shear zone.

"This comprehensive study across our entire portfolio has generated considerable excitement around the Broads Dam and Kundana North project areas with several high priority drill targets identified."

Study details

The study was conducted in conjunction with the University of Western Australia's Centre for Exploration Targeting, a world class scientific body using the latest technology and data modeling techniques.

One of Phoenix's geologists is completing his PhD on this work aimed at generating high priority drill targets across the portfolio that provide a higher probability of exploration success.

Highlights include:

- 4D mineral evolution research program undertaken with University of Western Australia's Centre for Exploration Targeting;

- Study focused on mapping major gold bearing fluid pathways in the region;

- Detailed 3D inversion models generated for advanced exploration targeting;

- Targeting and ranking models provide drilling locations and orientations with higher probability of exploration success;

- Results delivered over 30 high priority drill targets on the Kunanalling and Zuleika shear zones;

- Phoenix's tenure covers 15kms along Zuleika shear including Broads Dam and Kundana North directly along strike of +6Moz Kundana gold field; and

- The tenure has had limited to no exploration in the last 30 years.

Price added: "My congratulations go to James and the team at the CET for this high quality program using the latest in technology and modelling techniques.

"I encourage all mining companies to avail themselves of this world class expertise as we look to replenish our national Resource base."

Phoenix is now preparing drilling programs to build on its resource base.

The company already has a significant resource of 4.02 million gold ounces, including a 1.16 million ounce reserve.

Phoenix key points:

Potential cash from planned projects is plus A$70m over the next seven years.

Phoenix has recently secured a heap leach plant, and also has access to toll treatment.

The company will also focus on completion of the License to Mine agreement with Norton.

Adding to the company's potential and already plus four million ounce gold bounty, there is significant exploration upside on the Zuleika and Kunanalling shear zones.

Currently Phoenix's EV / Reserve ounce is just A$29.6.

This compares to Norton AU$142.7, Doray Minerals (ASX:DRM) A$175.6, Saracen Minerals (ASX:SAR) A$192 and Regis Resources (ASX:RRL) A$384.7.

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