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Resources and Energy Group achieves key milestone at Radio Gold Mine

Underground ore development continues with the funds of the ore sale being re-invested back into the operation.

Underground haulage infrastructure
Underground haulage infrastructure completed

Resources and Energy Group Ltd (ASX:REZ) has compiled a maiden JORC 2012 resource for the Radio Gold Mine in the Yilgarn Craton of Western Australia.

The Radio Gold Mine now has an indicated resource of 50,300 tonnes at 4.55 g/t gold and an inferred resource of 160,400 tonnes at 4.12 g/t gold, for a total of 28,600 ounces of contained gold.

REZ has developed the resource from historical exploration records and recent geological sampling programs.

Quartz samples from the East and Main Lode

REZ chief executive officer Richard Poole said: “The release of the maiden JORC 2012 resource for Radio demonstrates Resource and Energy Group’s continued plans to define and develop the Radio Gold deposit.

“This is a key milestone to bring the Radio Gold Mine back into full production.”

READ: Resources & Energy Group removes first ore since 1974 from Radio Gold Mine

The addition of the Radio resource represents a 30% increase in the company’s mineral assets which now stand at 128,000 ounces of gold and 624,000 ounces of silver.

Importantly, the geological understanding of the Radio Gold ore body and mineralisation controls has advanced significantly as a result of this work.

Further mine development, sampling and drilling programs have been optimised based on the improved knowledge of the deposit.

REZ has developed a surface drilling program to test the resource inventory immediately adjacent to the defined resource with step out holes planned to increase the overall footprint of the Radio Gold deposit.

Funds from ore sale re-invested back into operations

Operationally, the underground haulage infrastructure setup is now complete and the underground development bulk sampling activity continues.

After a successful second processing campaign and a boost in cashflow, a third ore processing campaign is planned in July 2018 at the Minjar Marvel Loch processing facility.

Poole added: “Underground ore development continues at the mine with the funds of the ore sale being re-invested back into the operation.

“Further resource updates are planned during the year utilising the sampling information from underground extensions and a surface drill program."

Quick facts: Resources & Energy Group Ltd

Price: 0.038 AUD

ASX:REZ
Market: ASX
Market Cap: $14.97 m
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