The sudden increase prompted the ASX to issue a price and volume query, with around 1.2 million shares changing hands by 3.30pm (AEST).
Phoenix responded saying it is not aware of any material information that has not been disclosed to the market, which may explain the sudden investor interest.
However, it did note that a number of broker reports with buy recommendations had been released recently.
Phoenix is converting a number of its historic stockpiles to cash through an ore purchase deal recently struck withNorton Gold Fields (ASX: NGF).
It is a strategic move for both companies with Norton's 3 million tonne per annum Paddington Mill just 20 kilometres east of Phoenix's tenement package in Western Australia's goldfields.
The current high gold price has meant the stockpiles are now economic for Phoenix, with the sale providing the company attractive cashflows to advance feasibility work at Castle Hill and Broads Dam to define maiden Reserves.
Phoenix has taken a different approach to previous operators in the Western Australian Goldfields by achieving early production from the treatment of surface stockpiles and cashflow positive small mining projects through plants in the region that have spare capacity.
The company still has additional stockpiles of ore which can be monetised, and are likely to bring in between $1 million and $2 million in net cash over the next couple of years.
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