viewResources & Energy Group Ltd

Resources & Energy Group has sights set on gold


The company’s portfolio includes three gold projects.

Man holds gold nugget

Quick facts: Resources & Energy Group Ltd

Price: 0.023 AUD

Market: ASX
Market Cap: $8.92 m
  • The company recently reported positive interceptions from East Menzies Gold Project in WA

  • Last year it produced a resource for a project located at WA’s historical Radio Gold Mine

  • A scoping study is underway for the Mount Mackenzie Gold Project near Rockhampton in Queensland

What does Resources & Energy do?

Resources & Energy Group Ltd (ASX:REZ) is an Australian explorer that targets prospective brownfields exploration areas in Western Australia and Queensland.  

The company recently brought on new corporate advisors from MMR Corporate Services Pty Ltd as it reaches out to investors with its gold exploration portfolio.

Its goals for the upcoming period in WA include continued activity at a mine and development of a Menzies area project and in Queensland studies at the Mount Mackenzie project.

Resources & Energy is led by acting chief executive officer Christian Price, a mine manager and mining engineer with more than 18 years experience in the definition and development of resource projects.

Price is also a minerals and energy economist who previously worked at Gold Fields Limited (NYSE:GFI) (JSE:GFI) as a certified underground mine manager.

What are Resources & Energy’s priorities

“REZ is set to continue activity at its Radio Gold Mine, further develop the East Menzies project and complete studies on the Mount Mackenzie project,” CEO Christian Price said this month.

“REZ has engaged MMR Corporate to assist the company in reaching out to investors and media in presenting the company’s advanced gold exploration projects (and) help coordinate timely market disclosure.”

What has Resources & Energy been doing?

A key asset for Resources & Energy is the East Menzies Gold Project in Western Australia at which the company has recently drilled a significant gold intersection at the Gigante Grande prospect.

Gigante Grande drilling returned intersections such as 21 metres grading 7.11 g/t gold from 36-metres, including 5-metres at 29.19 g/t. This intersection ended in notable mineralisation of 13.84 g/t gold at 57-metres depth.

A second hole from the project acquired last year featured 8 metres grading 6.96 g/t gold from 72 metres.

Drilling was also undertaken at Kota Paxi Prospect at the Menzies area project.

The two prospects are 3 kilometres from each other in a 3.5 square kilometre prospective area.

Early exploration at Kota Paxi prospect also intersected gold anomalies.

If the two areas’ gold mineralisation links up, the strike could be 4.7 kilometres wide and 150-500 metres wide.

Another entity, Goldfields Exploration, previously suspected a potential connection between the two bedrock gold anomalies but did not investigate.

Exploration permit applications for surface exploration and reverse circulation (RC) drilling at the prospects are being assessed by the WA State Government.

What other assets does Resources & Energy hold?

Another asset is the Radio Gold Mine where Resources & Energy plans to continue its activity and the Mount Mackenzie project where it hopes to complete studies.

Radio Gold Mine project is also in WA, with the site being 8 kilometres northwest of Bullfinch and 400 kilometres from Perth.

The mine was historically mined between 1918 and 1974, with underground mining producing more than 71,000 ounces of gold at 38.5 g/t gold. 

Radio Gold Mine was worked to a 100-metre depth then abandoned as “uneconomic” when gold prices declined to $440 an ounce in the mid-1970s.

Resources & Energy owns leases covering 9.8 square kilometres around the original mine site only 6 kilometres from the Copperhead Mine, which has produced over 1 million ounces of gold.

Sampling at the site since 2017 has returned grades such as 522 g/t over 0.5 metres and 519 g/t over 0.3 metres.

The first ore removed at the site since the 1970s resulted in a resource milestone for the company last year — a resource made up of historical results and the sampling.

Radio Gold Mine’s indicated resource was 50,300 tonnes at 4.55 g/t gold and its inferred resource was 160,400 tonnes at 4.12 g/t gold, for a total of 28,600 ounces of contained gold.

Three development zones are considered ready at Radio Gold Mine, with one having a face grade of 50.6 g/t over a 2.7-metre mining width.

Onsite processing is viewed favourably, with gravity recoverability of the gold grade being judged as about 87%.

Mechanisation is also viewed as a potential way to increase the recoverability of ore.

Mount Mackenzie mine site is 150 kilometres northwest of Rockhampton in Queensland.

Previous drilling results indicate a resource at the Mount Mackenzie of 100,000 ounces of gold at a grade of around 1.3 g/t.

The company has four areas at the project, two in mining leases, with the resource only being reported for a small area of the leased ground.

A scoping study is underway for the project.

Inflection points

  • Positive timely news flow
  • Exploration permit acquisitions
  • Notable results from field exploration efforts
  • Significant transactions, such as acquisitions or divestments
  • Financing milestones
  • Gold market sentiment

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