Resources & Energy Group Limited (ASX: REZ) Marks Major Milestone with the Recommencement of Gold Mining Operations
Resources & Energy Group Limited (ASX: REZ) is pleased to announce the recommencement of gold mining and production at the East Menzies Gold Project, a significant step forward for the company's growth trajectory. The initial mining efforts will focus on the Maranoa deposit, with plans to process 5,000 tonnes of ore using a vat leach facility, which is set to be built shortly. This restart signals the beginning of a sustained production phase, supported by the Western Australian Department of Mines, Industry Regulation, and Safety (DMIRS) approval for a trial vat leach and bulk sample program.
With an approximate diluted grade of 4.6g/t Au, the initial ore processing through the vat leach method is expected to yield critical insights into the scalability of future operations at East Menzies. This phase paves the way for the first gold pours within weeks and represents a crucial data-gathering opportunity to optimize future resource management and production processes.
Strategic Leadership and Vision for East Menzies
J. Daniel Moore, Managing Director of Resources & Energy Group, expressed his enthusiasm for this pivotal development:
"This is a transformative moment for the East Menzies Gold Project. The restart of mining at Maranoa highlights our commitment to unlocking the full potential of this consolidated tenement package. The vat leach program, initiated in a high gold price environment, offers an efficient and cost-effective approach to gold extraction, setting the stage for sustained production and future scalability."
Moore emphasized that the success of this phase would not only accelerate gold production but also generate cash flow that will support the exploration of other high-grade deposits across the East Menzies tenements. This strategy is designed to drive sustained shareholder value and long-term operational growth.
Building on the Success of the Granny Venn Campaign
The resumption of operations at East Menzies follows the impressive results of REZ's Granny Venn campaign, which produced 8,700 oz of gold from 130,000 tonnes of ore, generating $23 million in revenue, despite lower gold prices at the time. With current gold prices at record highs, REZ is strategically positioned to maximize production efficiency and optimize margins using the low-cost vat leach method. This renewed focus on operational efficiency is expected to further enhance the company’s financial performance and strengthen its position in the market.
Future Prospects and Expansion Plans
Following the successful completion of this initial phase at the Maranoa deposit, REZ plans to extend mining operations to additional targets within the East Menzies tenement, including the Goodenough and Granny Venn deposits. With a robust pipeline of high-grade gold projects and ongoing exploration, the company is well-positioned to deliver long-term shareholder value. Future plans also include the potential upgrade of the processing facility to a CIL plant onsite, allowing for further operational growth.
Investors can follow the progress of REZ’s mining and processing activities through the company's social media channels on X (formerly Twitter) and LinkedIn.
