- Resources and Energy (REZ) is looking to renew mining operations at the Granny Venn mine, which is part of the East Menzies Gold Project in WA
- Since mid-last year, the company has been conducting resource modelling and other studies, which identified four targets within the Granny Venn pit
- The work also highlighted that only minor changes need to be made to the existing mining proposal
- To further investigate and take advantage of this opportunity, REZ has signed a profit share mining agreement with BM Mining
- BM will manage the mining operations and are expected to begin within the next quarter.
- Resources and Energy is up 5.13 per cent and shares are trading at 4.1 cents
Resources and Energy (REZ) has completed resource modelling and pit optimisation studies at the Granny Venn mine in Western Australia.
This mine is part of the East Menzies Gold Project, located in the Springfield Gold Corridor.
REZ conducted resource modelling and study work to assess the potential to renew mining operations with the focus being on a cut-back to exploit an extension to the main ore body on the northeast side of the Granny Venn pit.
Excitingly, the modelling has identified four high-priority targets within the Granny Venn pit and drilling is now underway.
Investigations to support mine development options began in July last year and resulted in REZ reporting an exploration target of around 200,000 tonnes at 1.9g/t gold for 12,200 ounces of gold and 300,000 tonnes at 1.4g/t gold for 13,500 ounces of gold.
The review also highlighted that only minor changes would need to be made to the existing mining proposal for renewed operations.
The main change being new infrastructure including a 2.5-kilometre-long haul road with direct access to the Goldfields Highway.
REZ has entered a profit share mining agreement with BM Mining to further investigate and take advantage of the remnant resources at the Granny Venn mine.
Subject to successful drilling, BM will manage mining operations to recover the resource. These mining activities are expected to begin within the next quarter.
The parties have also agreed to consider other mining operations in the Springfield Gold Corridor.
Resources and Energy is up 5.13 per cent and shares are trading at 4.1 cents at 1:20 pm AEDT.