Feb 16, 2021

Mount Mackenzie drilling to feed feasibility study

Mount Mackenzie drilling to feed feasibility study

Resources & Energy Group expects drilling to start this week at its Mount Mackenzie gold and silver project, 150km north-west of Rockhampton.

Proactive Drilling has been selected to carry out the drilling program, with the company expecting to mobilise within the next few days

A scoping study conducted in July 2020 returned an indicated and inferred resource of 3.42Mt at 1.18g/t gold and 9g/t silver, totalling 129,000oz gold
and 862,000 oz silver.

This work also generated a production target of 2.2mt with a head grade of
1.32g/t gold and 8.5g/t silver for an estimated 67,000oz of gold and 392,000 oz of silver.

The upcoming drilling program is expected to involve six holes for 1000m of drilling investigations, including 600m of coring.

Resources & Energy Group said the work would focus on the South West slopes of the Mount Mackenzie Resource area.

The metallurgical test-work program will be run by JT Metallurgical Services and will evaluate the likely process flowsheets.

It is expected to yield definitive economic and plant design information for downstream engineering and financial modelling.

Feasibility study well advanced

Resources & Energy Group expects to complete its feasibility study for Mount Mackenzie by June this year.

A significant amount of mine planning, and scheduling was carried out in 2020.

The company said the completion of the February drilling program would also enable conversion of remaining inferred resources, which are located wholly within the South West Slopes, to the indicated class, with opportunity to generate reserves subject to a positive feasibility study outcome.

Previous drilling at Mount Mackenzie.