Resources & Energy Group (ASX:REZ) beats expectations at Granny Venn's first milling campaign

Highlights 

  • Resources & Energy Group Limited (ASX:REZ) has successfully completed the first Granny Venn milling campaign at Menzies Shire, Western Australia.
  • The miner revealed that it had milled a total of 24,459 tonnes resulting in the recovery of 1,766oz Au in the first milling campaign.
  • BEM Mining resumed mining at the Granny Venn in early July this year, and no mining has taken place in the last 23 years.

Gold exploration and development company, Resources & Energy Group Limited (ASX:REZ), grabbed the attention of investors on Tuesday following an announcement related to the completion of the first Granny Venn milling campaign, at Menzies Shire, Western Australia.

In the significant announcement, the miner revealed that it had milled a total of 24,459 tonnes resulting in the recovery of 1,766oz Au in the first milling campaign, which took place in October.

Triggered by the announcement, the shares of the company rise as much as 11.11% to trade at AU$0.05 to record the biggest intraday percentage gain since 9 November 2021.

Notably, REZ is an independent mineral resources explorer and miner with its key project located in premier mining jurisdictions of Queensland and Western Australia.

Successful completion of high-grade milling

The first toll treatment for the Granny Venn Cut Back has been reconciled with the completion of out-turn results from the Perth Mint, an end-of-month pit survey at Granny Venn, and Gold in Circuit adjustments at Lakewood.

Gold extraction

Source: © Bendicks | Megapixl.com

The miner has milled at a head grade of 2.47g/t Au for 1,766oz Au with a recovery grade of 2.23gt/Au, representing the 97% of the modelled reserve tonnes, 104% of the estimated ounces recovered and 107% of the modelled grade.

Good Read: Resources & Energy (REZ) Hits Jackpot at its Menzies Gold Project; Share price up 178%!

Exceptional milling results

In addition to this, the miner also stated that the east cut back is the primary resource for the operation with early indications that the modelled ore resources are lower than actual ore resources. The indications will be confirmed with the receipt of grade results from fire ore shots.

REZ has delivered a total of 17,000 tonnes to Lakewood as of 29 November 2021 with a second campaign of 25,000 tonnes in line to commence in December.

Also Read: Resources & Energy (ASX:REZ) jumps on resuming East Menzies gold mining

Prior to REZ, BEM Mining resumed mining at the Granny Venn in early July this year and no mining has taken place in the last 23 years. In March 2021, both REZ and BM Mining teamed up under a profit-sharing agreement to economically exploit the recoverable remnant resources at the Menzies project.

Bottom Line

Shares of Resources & Energy Group Limited (ASX:REZ) shot up as the miner has beaten estimates at the first milling campaign at Granny Venn by delivering higher recoveries and grades.

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