REZ Group's Strategic Move: Trial Vat Leach Program at East Menzies
RESOURCES & ENERGY GROUP LIMITED (REZ) Share Update October 2024 Thursday 31st
REZ Group Recommences Trial Vat Leach at East Menzies Gold Project
Resources & Energy Group Limited (ASX: REZ) has announced the recommencement of its trial vat leach program at the East Menzies Gold Project, marking a significant milestone for the company.
Instant Summary:
- Trial vat leach program recommenced at East Menzies Gold Project.
- Approval received from Western Australian DMIRS.
- Initial focus on processing 5,000 tonnes from the Maranoa deposit.
- Potential for significant growth with high-grade gold deposits.
- Completed $500,000 share placement for strategic drilling at Goodenough Gold prospect.
East Menzies Gold Project
Resources & Energy Group Limited (REZ) has reached a significant milestone with the recommencement of its trial vat leach and bulk sample program at the East Menzies Gold Project. This follows the recent approval from the Western Australian Department of Mines, Industry Regulation and Safety (DMIRS).
The initial mining phase will focus on the Maranoa deposit, where approximately 5,000 tonnes of hard rock material will be processed. The expected diluted grade is approximately 4.6g/t Au, which is slightly lower than the Maranoa JORC Mineral Resources Estimate of 5.8g/t. However, the company does not consider this a material change for the trial phase.
Geological Insights and Strategic Expansion
The Maranoa site features banded quartz-amphibolite rocks with minor sulphides, hosted in sheared metabasalt. The recommencement of operations builds on the success at the Granny Venn deposit, which previously generated $23 million in revenue. With current high gold prices and a low-cost vat leach process, REZ is well-positioned to optimize production costs.
Following the initial phase, REZ plans to expand operations to other targets within the East Menzies tenement area, including the Goodenough and Granny Venn deposits. The company aims to deliver long-term value through continued exploration and production, with plans to upgrade processing capabilities onsite.
The recommencement of the trial vat leach program is a strategic move that could significantly enhance REZ's production capabilities at East Menzies. The approval from DMIRS and the focus on high-grade deposits position the company for potential growth. This development is likely to positively influence the company's stock as investors anticipate increased gold output and revenue.
Investor Reaction:
Analysts are likely to view this development positively, given the strategic focus on high-grade deposits and the potential for increased gold production. The successful share placement indicates strong investor confidence in REZ's strategic direction.
Conclusion:
Investors should monitor REZ's progress with the trial vat leach program and subsequent phases at East Menzies. The company's strategic focus on expanding its operations and optimizing production costs could offer substantial returns. Staying informed on REZ's developments will be crucial for making informed investment decisions.