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Resources and Energy Group (ASX:REZ) to begin fresh drilling program at East Menzies, WA

Mining
ASX:REZ      MCAP $5.998M
08 June 2021 16:00 (AEST)
Resources and Energy Group (ASX:REZ) -

Source: Resources and Energy Group

Resources and Energy Group (REZ) is gearing up to kick off a fresh round of drilling at its East Menzies project in WA.

The gold explorer said it will begin drilling at the Gigante Grande prospect on Wednesday, June 9, with the planned targets outlined from previous exploration in the area.

So far, REZ has drilled 44 holes at the Gigante prospect for 6007 metres since October 2020. Under the upcoming drilling program, the company plans to drill another 26 holes for 3580 metres.

The mineralised zone outlined at the project area so far is up to 300 metres wide with a strike length of at least 1400 metres, according to the company. This strike zone remains open to the north, south, and west.

REZ said from this zone it had previously struck broad zones of ore-grade mineralisation from as shallow as 11 metres below surface.

Moreover, thirty holes drilled at Gigante Grande have intersected “gram level” gold mineralisation, according to REZ. This includes drilling by Resources and Energy as well as historical drilling by Paddington Gold.

REZ management said at a cut-off grade of 0.3 grams per tonne (g/t) of gold, the mineralised intervals at the prospect had a combined weighted grade of 2.29 g/t of gold.

“These results are strong indicators that the Gigante Grande prospect offers potential to a support an exceptionally large, and shallow, open-cut gold mining operation,” the company said.

The East Menzies project lies around 130 kilometres north of Kalgoorlie in Western Australia.

Resources and Energy also owns the Mount Mackenzie project in Queensland. Like East Menzies, this project is prospective for gold.

Shares in Resources and Energy Group closed up 3.45 per cent at 3 cents each. The company has a $12.5 million market cap.

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