Phoenix Gold (ASX:PXG) has transformed a low-grade stockpile at its Kintore West gold project near Coolgardie in Western Australia into a material value-add asset by generating A$570,000 over four weeks of milling.
The program included the treatment of 108,117 tonnes of ore at an average grade of 0.81 g/t with 2,505 ounces of gold sold to the Perth mint.
After completion of the campaign, the remaining stockpile at Kintore West was approximately 550,000 tonnes. The low grade stockpile has no attributable mining costs, no carrying value and will only incur costs for haulage and treatment.
A further campaign now underway is targeting the processing of more than 100,000 tonnes.
Milling work at Kintore West follows a low-grade campaign carried out at the Kalgoorlie-based company’s Greenfields plant in June and July, which delivered positive cash flow. Phoenix began a toll milling campaign on August 8 which was completed on September 6.
As this operational progressed advanced, Phoenix has fielded off-market takeover bids from Evolution Mining (ASX:EVN) and Zijin Mining Group Co., Ltd (SHA:601899, HKG:2899), with company management initially advising no action on both accounts.
The company's projects are located within 50 kilometres of Kalgoorlie-Boulder with resources of 4.02 million gold ounces, including a 1.16 million ounce reserve.
Stock in Phoenix has gained 110% since April and last closed at A$0.137.
The company held cash and cash equivalents at the end of June totalling $3.9 million.
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