REZ Launches Drilling to Unlock East Menzies Gold Potential
Resources & Energy Group Limited (ASX:REZ) has initiated reverse circulation drilling at its East Menzies Gold Project, aiming to expand known gold mineralisation and explore new targets at Gigante Grande and Goodenough deposits.
- RC drilling commenced at Gigante Grande and Goodenough gold deposits
- Program targets extensions to existing mineralisation and beneath supergene zones
- Gigante Grande hosts 40,700 oz inferred resource with exploration target up to 500,000 oz
- Goodenough drilling tests extensions and infill areas within current resource
- Drilling supports resource growth and near-term development plans
Drilling Kicks Off at East Menzies
Resources & Energy Group Limited (ASX:REZ) has commenced a reverse circulation (RC) drilling campaign at its East Menzies Gold Project in Western Australia, signalling a proactive step towards expanding its gold resource base. The program focuses on two key deposits, Gigante Grande and Goodenough, both of which have shown promising mineralisation in previous exploration phases.
Targeting Extensions and New Zones
The drilling is designed to test extensions to known mineralisation at Goodenough, where historical underground mining yielded high-grade gold. Recent REZ drilling has also returned encouraging near-surface gold intercepts, underscoring the potential for resource growth. At Gigante Grande, the program aims to explore mineralisation beneath supergene zones and along lithological contacts, areas identified through recent surface mapping and geological interpretation as prospective for additional gold deposits.
Significant Resource and Exploration Potential
Gigante Grande currently hosts a JORC (2012) Inferred Mineral Resource of 1.39 million tonnes at 0.91 grams per tonne gold, equating to approximately 40,700 ounces. Moreover, an Exploration Target of 4.0 to 5.0 million tonnes at 1.3 to 3.0 grams per tonne gold suggests potential for 160,000 to 500,000 ounces, highlighting substantial upside. The drilling program is a critical step in validating and potentially expanding these figures, which could materially enhance the project's value.
Strategic Importance for Development
This drilling initiative is not just about resource expansion; it is integral to advancing the East Menzies project towards development. By increasing confidence in mineralisation controls and resource extents, REZ aims to underpin near-term development pathways and monetisation strategies. The company’s commitment to innovative processing methods, such as vat leaching, further supports its goal of cost-effective gold extraction.
Looking Ahead
As the drilling progresses, market participants will be keenly awaiting assay results that could confirm the presence of additional high-grade gold zones. These outcomes will be pivotal in shaping REZ’s next steps, including potential resource upgrades and feasibility assessments. The East Menzies Gold Project remains a focal point for the company’s growth ambitions in the competitive Western Australian gold sector.
Bottom Line?
REZ’s drilling at East Menzies sets the stage for a potential resource leap, but results will be key to unlocking value.
Questions in the middle?
- When can investors expect the first assay results from the current drilling program?
- How might expanded resources at Gigante Grande and Goodenough impact REZ’s development timeline?
- What are the risks if drilling fails to confirm significant extensions or new mineralisation?
