Resources Energy Group (ASX:REZ) has confirmed its recommencement of gold mining and production at its East Menzies Gold Project (EMGP).
WA regulators have given the company approvals for a trial vat leach and bulk sample program with initial mining to focus on the Maranoa deposit targeting 5,000 tonnes of processed ore.
“This page sets the stage for near-term gold pours,” the company wrote on Wednesday. East Menzies, as REZ sees it, is set to offer the company growth prospects in the near-term-future.
As for when the first gold pours? The company said on Wednesday its’s due in “the coming weeks.”
The future size of the EMGP hinges on the company’s vat leach trial, the facility for which is not yet build (but soon to be so.)
“With a diluted grade of approximately 4.6g/t Au, processing this ore through the vat leach method will yield essential insights into the scalability of future operations at East Menzies,” REZ wrote on Wednesday.
“This marks the start of a sustained production phase and will provide critical data for optimising future resources.”
Management pointed also to current record gold price territory.
“The vat leach program is particularly timely given the current record high gold price. This process provides a low-cost, fast-track method for gold extraction,” REZ MD J. Daniel Moore said.
“Furthermore, the cash flow generated from this phase will support the ongoing exploration of other high-grade deposits across our East Menzies tenements.”
REZ last traded at 3.1cps.
Join the discussion: See what HotCopper users are saying about Resources & Energy Group and be part of the conversations that move the markets.