Name and Location
Castle Hill heap-leach project, Australia.

Client
Phoenix Gold.

Project Description
A definitive feasibility study (DFS) on the Castel Hill project has shown improved project economics and strong returns.

The projects are located on the highly prospective Zuleika and Kunanalling shear zones in the heart of the Western Australian goldfields, less than 50 km from the regional mining centre of Kalgoorlie.

Under the DFS, current mineral resources for heap leaching totals 58.3-million tonnes at 0.6g/t gold for 1.1-million ounces and current ore reserves for heap leaching totals 15-million tonnes at 0.6g/t gold for 280 450 oz.

The heap-leach ore will be sourced from the lower-grade stockpiles mined from the Mick Adams-Kiora, Wadi, Kintore, Castle Hill Stage 3 and Burgundy openpits.

The DFS is an update of the work completed and announced to the ASX in February 2014. It now includes the relocation, refurbishment and recommissioning of the St Ives two-million-tonne-a-year standalone processing plant at Castle Hill, and the construction of a heap-leach pad and associated civil infrastructure to integrate with plant design. The project is expected to deliver 191 000 oz of gold over a seven-year mine life at an average production rate of 27 000 oz/y.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$40-million and in internal rate of return of 45%.

Value
The cost of the heap-leach pads and processing plant is estimated at A$34.41-million.

Duration
Development time to first production is estimated at between 12 and 15 months.

Latest Developments
Statutory approvals and heap-leach project financing is well advanced for a development decision in coming months.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Phoenix Gold, tel +61 8 9021 2704, fax +61 8 9021 3393 or email info@phoenixgold.com.au.