REZ Advances East Menzies with 54% Resource Boost and Two Drilling Campaigns

Goodenough Resource Upgrade Signals Growing Confidence

Resources & Energy Group Limited (ASX:REZ) has delivered a substantial upgrade to its flagship Goodenough Gold Deposit at the East Menzies Gold Project in Western Australia, lifting the JORC (2012) Mineral Resource Estimate by 54% in tonnage to 1.36 million tonnes grading 1.40 g/t Au for 61,200 ounces of gold. More than 90% of this resource is now classified as Indicated, reflecting increased geological confidence and improved data from recent drilling. This upgrade adds 15,090 ounces of contained gold compared to the 2020 estimate, reinforcing Goodenough’s potential as a near-term development target.

The resource remains open along strike and at depth, with multiple high-grade shoots plunging between 23 and 45 degrees south identified within a siliceous pyritic horizon. The deposit is constrained within optimised open pit shells using a conservative gold price of A$5,000 per ounce, demonstrating reasonable prospects for economic extraction. Below the pit shell lies an additional 1.88 million tonnes at 1.2 g/t Au of unclassified mineralisation, representing upside potential yet to be fully captured.

Two RC Drilling Campaigns Target Resource Growth and Classification

In the March quarter, REZ completed two reverse circulation (RC) drilling campaigns at East Menzies, totaling 23 holes and 2,766 metres. The first campaign focused on the Gigante Grande, Goodenough, and Maranoa prospects, drilling 18 holes for 1,968 metres. This program targeted extensions to known mineralisation and aimed to validate an Exploration Target of 4.0–5.0 million tonnes at 1.3–3.0 g/t Au for 160,000–500,000 ounces at Gigante Grande Central Domain, a deposit that currently hosts an inferred resource of 1.39 million tonnes at 0.91 g/t Au for 40,700 ounces.

The second campaign, completed in April, comprised five holes for 798 metres at Goodenough, designed to test strike extensions and infill drilling to upgrade resource classification from Inferred to Indicated. All samples from both campaigns have been dispatched to ALS Kalgoorlie for assay analysis, with initial results expected imminently. These drilling efforts build on the company’s strategy to expand and upgrade its resource base, moving towards advanced mining studies and development planning.

The drilling programs continue the momentum established earlier this year, following the commencement of RC drilling in February targeting extensions and new zones at Gigante Grande and Goodenough. The company’s technical team completed the first campaign ahead of schedule, adding an extra hole at Maranoa, a prospect noted for its high-grade historical gold intercepts.

Capital Raising to Support Exploration and Development

To fund ongoing exploration and development activities at East Menzies, REZ lodged an Options Prospectus in April offering up to 96.8 million Class A Options exercisable at $0.04 each, expiring in June 2027. If fully exercised, the options would raise approximately A$3.87 million. The offer includes tranches to placement participants, directors in lieu of fees, and the lead manager, Whairo Capital Pty Ltd.

As of 31 March 2026, REZ held $1.6 million in cash and 33 million shares in QMines Limited (ASX:QML), valued at approximately $1.98 million, subject to voluntary escrow. Operating expenditure during the quarter was $303,000, down from $642,000 in the prior quarter, reflecting disciplined cost management amid active exploration.

Gigante Grande Remains a Key Growth Asset

The Gigante Grande prospect continues to be a cornerstone of REZ’s growth ambitions at East Menzies. The deposit’s inferred resource of 1.39 million tonnes at 0.91 g/t Au remains open along strike and at depth, with an Exploration Target that could potentially expand to as much as 500,000 ounces of gold. Mineralisation is hosted by sheeted quartz vein arrays within brittle granite near the Moriarty Shear Zone, showing strong continuity and supergene enrichment near surface.

Pending assay results from the recent drilling campaign will be integrated with existing data to refine the resource model and guide further exploration. These efforts follow the company’s earlier announcements outlining the Exploration Target and maiden resource at Gigante Grande, which have set a clear path for resource growth and eventual development.

REZ’s methodical approach to exploration, resource modelling, and capital management positions it well to unlock value from East Menzies. The company’s recent Goodenough resource upgrade and the launch of drilling campaigns earlier this year underpin its strategy to build a robust resource base capable of supporting near-term mining.