Highlights

• 34 Exploration holes completed for an advance of 3,673m
• Scout Drilling along the Springfield-Venn Corridor commenced
• Granny Venn Pit Mining Proposal Approved and Operations Commence
• Drilling operations at Mount Mackenzie Completed, Metallurgical Testwork underway

Resources & Energy Group Limited (ASX:REZ or the Company) is pleased to provide its Quarterly Activities and Cash Flow Report for the period ending June 30, 2021.

East Menzies Gold Project (EMGP) West Australia

Gigante Grande Prospect

During May and June, the Company completed 25 holes at the Gigante Grande Prospect for an advance of 2773m. The work was designed to enable 1st pass resource generation between N6714500 and N6715600 including extension of mineralisation north of 20EMRC002 and to test the presence of shallow oxidised mineralisation between N6715000 and N6715300. A total of 28 holes were originally planned for the campaign, however 3 holes, testing the resource extension to the north, could not be reached due to wet ground conditions. Results for these drilling activities are expected in late July and early August.

Granny Venn Mining Operations

During the quarterly period, a Mining proposal to resume open-cut operations at M29/189 Granny Venn was approved. A notification of commencement of Operations was lodged in late June, with the 3 removals of first overburden taking place shortly thereafter. Mining operations will initially commence in the northwest corner of the Granny Venn Pit where grade control drilling has defined a previously unrecognized extension to the resource. During the reporting period additional Grade Control drilling over this area, and within the immediate vicinity of the pit, has identified a near term production target of 8,800 oz au.

Springfield Prospect

In late June, the Company commenced a scout program of RC drilling along the south-western side of the East Menzies Gold Project Area known as Springfield. The work is targeting historical RAB and Auger gold anomalies which were identified in 2005 by Great Australian Resources. This exploration activity complements work already underway along the eastern side of the project area at Gigante Grande, where drilling investigations are continuing to define the resource extents, and to the north where production activities at Granny Venn Open Pit have commenced.

Mount Mackenzie Gold and Silver Project

Drilling operations at Mount Mackenzie were completed in late April and bore-core recovered from the program has been loaded onto pallets and dispatched to ALS Townsville. The initial metallurgical test-work will be carried out by ALS, and will include core photography, spitting, half core assays, and determination of density over selected intervals. Subsequent test work will be carried out in West Australia under the supervision of JT Metallurgical Services Pty Ltd.

Activities Planned for the September 2021 Quarterly Period

The exploration results generated from the May/June drilling program will be used for preparing an Exploration Target for the central part of the Gigante Grande Prospect. This will enable a resource definition program to be designed, budgeted, and implemented. The drilling completed so far has already identified several areas where there is sufficient information to generate an inferred resource. Work on converting these areas to JORC resources will also commence. Some high-level leach-well and bottle roll investigations on RC chip samples are planned to provide indications on the metallurgical character of the Gigante Ore, and its amenability to a conventional CIL process route.

At Granny Venn, mine operations directed at recovering the first parcel of ore will be carried out as well as predevelopment activities on accessing additional ore from within the pit.

The bore-core recovered from the Mount Mackenzie drilling program will be initially prepared at ALS Townsville. The core will then be forwarded to JT Metallurgical services in Perth for detailed metallurgical and processing evaluation.

In parallel with Metallurgical studies, work on putting together a project development plan will commence. This will include an assessment of studies required to inform an application for a Site-specific Environment Authority which would support conversion of the existing MDL into a Mining lease.

Read the full announcement here.

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