Resources & Energy Group (ASX:REZ) has restarted gold mining and production at the East Menzies Project in Western Australia.
The news comes after gold prices edged up to US$2,665 ($3,990.5) per ounce yesterday (15 October), which Trading Economics says was buoyed by declining Treasury yields as investors awaited key US economic data for signals on the Federal Reserve’s policy outlook.
As of 11.20am AEDT, gold’s spot price is sitting at $3,995.92 per ounce, according to ABC Bullion.
Resources & Energy says mining activities will initially focus on the Maranoa deposit, with targeted processing of 5,000 tonnes of ore via the soon-to-be-built vat leaching facility.
The $20.74 million market capitalised company says this latest milestone comes after it received approvals from the Department of Mines, Industry Regulation and Safety, setting the stage for the first gold pour in the coming weeks.
Managing Director Daniel Moore says this is a pivotal chapter in the development of the East Menzies Project.
“The reinitiation of mining and production at Maranoa signals the beginning of sustained gold output and showcases the significant potential of the broader consolidated tenement package,” Moore says.
“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 and sets Resources & Energy up for long-term production success.
“By building on our recent Granny Venn campaign, we can leverage operational efficiencies and lessons learned to drive down costs and increase margins.
“Furthermore, the cash flow generated from this phase will support the ongoing exploration of other high-grade deposits across our East Menzies tenements, ensuring sustainable and scalable, targeted operations.”
Following the initial mining phase, Resources & Energy plans to expand mining operations to other key targets within the East Menzies area, including the Goodenough and Granny Venn deposits.
At Granny Venn, the company previously produced 8,700 ounces of gold from 130,000 tonnes of ore. As a result, Resources & Energy generated $23 million in revenue despite lower gold prices at that time, which were sitting at about $2,600 per ounce.
The East Menzies Gold Project is 130km north of Kalgoorlie with a collective surface area of 103km2 and consists of over 50 tenements.
Resources & Energy Group has operated as a gold and green metals explorer and developer since 2015. The company has projects in Western Australia and Queensland.
Write to Aaliyah Rogan at Mining.com.au
Images: Resources & Energy Group
