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Oct 2013 - Phoenix Gold Ltd

Phoenix Gold Limited (PXG) – Targeting Completion of its DFS to Bring Castle Hill into >100,000ozpa Gold Production in 2015

  • Phoenix Gold (PXG) has regularly achieved its targets, steadily increasing its resources to ~3moz in September 2013, with its latest target of ~4moz resources and ~1moz reserves by December 2013. Most of the resources and reserves are at its Castle Hill Stage 1 (south) project, that appears capable of supporting a plant treating ~2mtpa @ ~1.7g/t for at least 5 years, which at a ~95% recovery is ~100,000ozpa. 
  • PXG intends to blend in Red Dam at some stage, which could increase production closer to ~110,000ozpa to 120,000ozpa and possibly install heap leach operations at a later date at Castle Hill (south) and possibly Kintore (Castle Hill 2) using cashflow.
  • Apart from the ~$20m placement and SPP in 2012, PXG has self-funded its exploration through selling stockpiles, or undertaking JV treatment of small mining projects (SMP's) that have generated ~$2m to $3m each, such as the ~18,000oz from Catherwood Stage 1 through Zijin's Norton Goldfields plant at Paddington, or currently by itself from mining the base of the old Blue Funnel pit and toll-treating through Greenfields' Coolgardie plant.
  • It is the extensions to the SMPs such as south of Catherwood, south of Premier, east of Blue Funnel, Broads Dam and the parallel eastern structures, the vicinity of Castle Hill (Kiora & Wadi etc), Kintore and more distant satellites (like the Ora Banda prospects) that could extend the planned plant life closer to 10 years.
  • The DFS is expected to be completed in December 2013, with possible receipt of all required approvals, ahead of planned construction potentially in JQ2014. The ~2mtpa rated plant is expected to be constructed by Mintrex & has been based mostly on some of the successful operating plant components of Regis' Moolart and Garden Well operations.
  • Written by: Keith Goode
  • Wednesday, 06 November 2013

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