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Highlights
- Resources Energy Group resumes gold mining at East Menzies.
- Initial gold pour expected within weeks.
- Trial vat leach program to support long-term operations.
Resources Energy Group (ASX:REZ) has officially restarted gold mining operations at its East Menzies Gold Project (EMGP) in Western Australia. The ASX energy stock has received the necessary regulatory approvals to proceed with a trial vat leach and bulk sample program, marking a significant step forward in its mining efforts.
The initial focus of the project will be the Maranoa deposit, where the company plans to process around 5,000 tonnes of ore. This phase is designed to gather valuable data on how scalable the project will be in the future. With a diluted grade of approximately 4.6 grams per tonne of gold (g/t Au), the company expects this method to provide crucial insights into the feasibility of expanding their operations at East Menzies.
The vat leach facility, which is yet to be constructed, will play a pivotal role in determining the future size and scope of the EMGP. This method allows for cost-effective gold extraction and aligns with the company's strategy to maintain low operational expenses while maximizing output. According to the company’s recent update, the first gold pour is expected in the coming weeks, signaling the start of consistent production at the site.
Management has also highlighted the importance of the current high gold prices in relation to the project’s timing. Resources Energy Group sees the vat leach program as a fast-track method to generate cash flow, which will further support ongoing exploration across its tenements in the East Menzies region. This program not only provides a low-cost option for gold extraction but also allows the company to rapidly advance its mining activities in a financially sustainable manner.
- Daniel Moore, Managing Director of Resources Energy Group, emphasized the broader potential of this trial. He noted that the cash flow from the current phase will enable continued exploration and evaluation of other high-grade deposits in the area, setting the stage for future growth at East Menzies.
With gold prices remaining high, the timing of the vat leach program offers a strategic advantage for Resources Energy Group. The company’s next steps will include building the necessary facilities to carry out the vat leach trial and monitor its effectiveness in scaling up the project.
This trial marks a key milestone for Resources Energy Group, providing essential data to optimize the company’s long-term resource strategy at East Menzies.
