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Phoenix Gold Starts Supplementary Milling Of Kintore West Ore

Phoenix Gold (ASX:PXG) has started a supplementary milling campaign of low grade ore from its Kintore West mine near Coolgardie, Western Australia.

During the recently completed Kintore West milling campaign at FMR's Greenfields Processing plant in Coolgardie, a trial of Kintore West Low Grade ore was conducted for a period of 48 continuous hours on the 12th and 13th of May 2015.

A total of 5,191 tonnes were treated at an assay head grade of 1.02 grams per tonne, with a measured recovery of 94%.

In light of this encouraging result the milling agreement terms were renegotiated with FMR to reduce the cost exposure to Phoenix and extended by letter agreement.

A Kintore West Low Grade trial milling campaign commenced at the same processing facility on 12 June 2015. In this new campaign, a total of 15,907 tonnes has been treated to date at an assay head grade of 1.02 g/t, with a measured recovery of 92.0%.

The low grade stockpiles have no attributable mining costs, no carrying value and therefore only incur costs for haulage and treatment.

These stockpiles were mined from the Kintore West open cut and stockpiled in anticipation of future processing through a proposed heap leach plant.

Over 800,000 tonnes of this low grade material was stockpiled at the mine site with a reported grade of 0.6 g/t. This is enough for between 9 or 10 months of milling.

The milling grades will continue to be closely monitored on a daily basis. If the milling grade continues above the breakeven 0.65 - 0.7 g/t milling of this material will continue as it is providing positive cashflow for the company.

Dale Rogers, executive chairman, said that the milling will continue as long as the trial continues to be cash flow positive.

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