REZ Strikes Gold with First Doré Pour, Eyes Major Expansion at East Menzies

Transformational Milestone at East Menzies

Resources & Energy Group Limited (ASX: REZ) has marked a significant operational achievement with the successful first gold doré pour from its maiden vat leach trial at the East Menzies Gold Project in Western Australia. This milestone, completed in February 2025, validates the effectiveness of the low-cost vat leach process as a gold recovery method and underpins the company’s confidence in scaling up production.

The gold doré bars were transported to the Perth Mint for refining and sale, aligning perfectly with record-high gold prices that enhance REZ’s near-term cash flow prospects. This success follows the recommencement of mining operations at East Menzies in October 2024, initially focusing on the Maranoa deposit, where 5,000 tonnes of hard rock material were processed through newly constructed vat leach facilities.

Strategic Expansion Plans Underway

Building on the trial’s success, REZ has submitted a second mining proposal to the Western Australian Department of Mines, Industry Regulation and Safety (DMIRS) to expand its vat leach operation. The application seeks approval for eight additional vats, enabling processing of up to 40,000 tonnes from the Maranoa deposit. This expansion represents a critical step in transitioning from trial operations to a scalable, structured gold recovery and production model.

The company is also implementing a stockpiling and batch processing strategy to maintain consistent production while retaining flexibility in refining and sales. With a robust pipeline of high-grade gold deposits within the East Menzies tenement package, including the promising Gigante Grande prospect, REZ is positioning itself for sustained growth and long-term value creation.

Mount Mackenzie Divestment Sharpens Focus

In a strategic move to concentrate resources on its Western Australian operations, REZ completed the sale of its Mount Mackenzie Gold Project in Queensland to QMines Limited (ASX: QML) post-quarter. The transaction, valued at approximately $2.485 million, includes $1 million in cash consideration and 33 million QML shares subject to a 12-month escrow.

This divestment strengthens REZ’s balance sheet, providing capital to support the East Menzies expansion and exploration activities. In addition, retaining a significant shareholding in QMines allows REZ to maintain exposure to Mount Mackenzie’s future development upside while streamlining its strategic focus on gold production growth in Western Australia.

Financial Position and Outlook

As of 31 March 2025, REZ reported a cash balance of $77,000, with net cash outflows from operating and investing activities reflecting ongoing exploration and trial processing expenditures. The company is actively assessing the need for further capital raisings or standby loan facilities, contingent on cash flow outcomes from the Maranoa vat leach program and proceeds from the Mount Mackenzie sale.

REZ’s board expresses confidence in continued shareholder and director support to meet business objectives. The company’s strategic focus on low-cost, scalable gold production at East Menzies, combined with exploration upside and operational expansion, positions it well to capitalise on the current favourable gold price environment.