PERTH (miningweekly.com) – ASX-listed junior Phoenix Gold has poured its first gold from the Kintore West opencut operation, which forms part of the larger Castle Hill Stage 2 operation, in Western Australia.
Mining operations at Kintore West were launched in August this year and formed part of a three-tiered staged development of the Castle Hill mine.
Initial mining was expected to deliver 380 000 t of mill feed, grading 2.03 g/t gold for 24 400 oz, as well as 891 000 t of heap leach feed, grading 0.6 g/t for an additional 17 130 oz.
“In line with our staged development plan, Kintore, which is part of Castle Hill Stage 2, is the first in a series of opencut developments that will contribute to the business,” said Phoenix MD Jon Price on Thursday.
The Castle Hill Stage 2 operation was expected to deliver between 85 000 oz and 90 000 oz over an initial two-year period, generating revenues of between A$10-million and A$12-million.
Meanwhile, Phoenix was also developing the Castle Hill Stage 1 project in a joint venture with fellow-listed Norton Gold Fields, which was expected to recover some 142 000 oz of gold over an 18-month period.
“We continue to progress the joint venture with Norton Gold Fields for the development of Castle Hill Stage 1 and are on track to complete the updated heap leach feasibility study for treatment of lower-grade ore mined this quarter,” Price said.