Dear All Please find below the link to our latest announcement, the latest drilling results from a third stage within the large Castle Hill gold camp. These results have identified a number of new extensions over a 3km strike to the north of Stage 1 at Castle Hill and remain open in all directions. Further drilling is planned at this new Stage 3 and an independent resource update will be completed on the Dec Qtr. Castle Hill Stage 1, now the Mick Adams gold project, is being developed under the license to mine with Norton Gold Fields and the execution of the formal agreement is expected in the Dec Qtr. This will deliver 50% of the cash flow surplus to Phoenix with no capital outlay. Mining is expected to commence in the March Qtr 2015. Castle Hill Stage 2, now the Kintore gold project, is under development with mining commencing in early Sept and first milling and gold production planned for early October. This mine will be followed by the Burgundy, Red Dam and Nazzaris projects delivering 700kt per annum of ore grading 2.2g/t to the Greenfields Mill for toll treatment over the next 2 years under Phoenix management. The lower grade ore mined and stockpiled is currently the subject of an updated heap leach feasibility study after Phoenix purchased a stand-alone 2.3Mtpa heap leach facility from Gold Fields Ltd St Ives for $2m. This study will be completed in the Dec Qtr after additional met testing, updated capex and opex and financial modeling. Initial modeling demonstrates a production profile of 20-25koz per annum at very low unit costs given the mining costs are sunk. As our 3 tiered approach advances, I look forward to updating you further. To view the announcement, click on the link below: http://www.asx.com.au/asxpdf/20140916/pdf/42s7fvx27tnkkq.pdf
PXG Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
