PXG - Phoenix Gold

Phoenix Gold Limited (PXG) has entered into conditional agreements to acquire exploration and development projects in the Eastern Goldfields region of Western Australia.

http://www.phoenixgold.com.au

There has been a delay in the listing of PXG, red tape etc. I rang the company and 8th December looks to be the new listing date.

Spoke to Jon Price. He said that the ASX were snowed under and that they were hoping for the 17th Dec to list, it's now slated for the 22nd Dec. In the mean time holding statments should begin to arrive early this week. The IPO was heavily over-subscribed and they have scaled it back so everyone got something, your allocaton should be in your account already, mine are. He also added that drill rigs were ready to roll early in the new year.

Phoenix Gold confirms high grade near surface gold at Castle Hill

Tuesday, March 22, 2011

Phoenix Gold (ASX: PXG) maiden drilling has discovered high grade near surface gold at the Outridge and Kiora Deposits, part of the Castle Hill project.

Highlights include:

- 13 metres at 7.4 grams per tonne (g/t) gold from 57 metres, including 1 metre at 83.9g/t gold;
- 7 metres at 7.9g/t gold from 67 metres, including 3 metres at 12.4g/t; and
- 2 metres at 6.0g/t gold from 23 metres.

The results increase the strike length to 1.4 kilometres and provide the potential to boost the 253,000 gold ounces resource estimate.

These results will also help the company to deliver an updated resource for Castle Hill by mid-2011, before commencing a Pre-Feasibility Study.

Jon Price, managing director, said "Our first program has tested the lateral extensions of the ore body, however, the project remains largely untested below 80 metres depth so we see great potential for Castle Hill to become a very large gold operation."

Phoenix currently has JORC Resource of 977,000 gold ounces in total across all of the company's projects, with the goal a 50% increase by the end of 2011.

The projects cover 455 square kilometres within 50 kilometres of Kalgoorlie, and most importantly are proximal to the plus 4 million ounce Kundana Gold Camp, the plus 1 million ounce Frog's Leg Deposit, the 1 million ounce Ghost Crab Deposit, the plus 1 million ounce Enterprise Deposit and the 4 million ounce Mt Pleasant field.

Adding to this prospectivity is the potential for production, with Phoenix's projects within trucking distance of six established processing facilities.

LeeTV said:

Spoke to Jon Price. He said that the ASX were snowed under and that they were hoping for the 17th Dec to list, it's now slated for the 22nd Dec. In the mean time holding statments should begin to arrive early this week. The IPO was heavily over-subscribed and they have scaled it back so everyone got something, your allocaton should be in your account already, mine are. He also added that drill rigs were ready to roll early in the new year.

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Hi Lee, thanks for the info.
What is your connection with the company ? PXG has basically just floated a JORC resource ?

mr. jeff said:

Hi Lee, thanks for the info.
What is your connection with the company ? PXG has basically just floated a JORC resource ?

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Hi Jeff. I am a holder of Cazaly and they sent me the IPO details. I liked the look of their [PXG] grounds and management and bought in to the IPO, bought more on market prior to this announcement too. I think the milestones are achievable. The company is cashed up for the next 12 mths or so and the oppies should be well in the money by then too, imho.

LeeTV said:

Hi Jeff. I am a holder of Cazaly and they sent me the IPO details. I liked the look of their [PXG] grounds and management and bought in to the IPO, bought more on market prior to this announcement too. I think the milestones are achievable. The company is cashed up for the next 12 mths or so and the oppies should be well in the money by then too, imho.

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The PXGO & PXGOA's have started to be bought up quite heavily in last few weeks... possibly pre-empting a move in the heads??

Good results and very proactive company who are aiming to be cashflow positive by the end of their first year!

djones said:

The PXGO & PXGOA's have started to be bought up quite heavily in last few weeks... possibly pre-empting a move in the heads??

Good results and very proactive company who are aiming to be cashflow positive by the end of their first year!

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I like the cut of your jib. I was thinking the same. Heads are trailing at the moment, last traded @ 20c. PXGO last traded @ 5c (20c excise Feb 2012) PXGOA last traded @ 7c (25c excise Nov 2014).

Another aquistion today too:

ASX / MEDIA ANNOUNCEMENT
Phoenix Gold Ltd
ABN 55 140 269 316
73 Dugan Street
PO Box 100
Kalgoorlie WA 6430
Phone +618 9021 2704
Fax +618 9201 3393
www.phoenixgold.com.au
Info@phoenixgold.com.au
Phoenix Gold Limited (ASX: PXG, “Phoenix Gold”) is pleased to announce it has reached agreement with
Golden Deeps Ltd (“Golden Deeps”) to purchase a 95% interest in Golden Deep’s Blue Funnel gold project in
Western Australia.
Blue Funnel is located on the Zuleika Shear and is enclosed by Phoenix’s existing Broads Dam gold project in the
Carbine-Zuleika shear district. The purchase includes a single mining lease (M16/19) covering 109ha (Figure 1)
and includes a mineral Resource of 38,000 ounces at 3.9g/t below the existing Blue Funnel Pit (refer Note 2)
which mined approximately 48,000 ounces at 4.5g/t between 1985 to 1993.
This acquisition represents an important step in Phoenix’s efforts to consolidate ownership along the highly
prospective Zuleika Shear and in doing so, build a second major exploration project to compliment the
advanced Castle Hill project located 10km to the southwest.
Phoenix’s Broads Dam project now has an area in excess of 27 square kilometres including 14 kilometres of
continuous strike along the Zuleika shear, which hosts several world class gold deposits including Kundana
(+4Moz) and Frog’s Leg (+1.5Moz) to the south and Bullant (0.6Moz) to the north of the project area.
The gold endowment of the Broads Dam project totals approximately 350,000 oz (135k oz historic production
plus 100k oz in remaining resources), all of which is located in the top 80 metres in only two areas. The
remaining strike length remains under-explored as does the depth extensions below 80 metres. Both areas
represent high potential exploration targets (see Figures 3 & 4).
Phoenix has agreed to purchase 95% of the Blue Funnel asset for the following consideration:
− $25,000 non-refundable cash deposit on signing formal agreement
− $275,000 cash payable at settlement
− $800,000 in Phoenix shares (4,000,000 shares at $0.20)
− Gold royalty of $20 per ounce produced from the tenement.
“The Blue Funnel asset represents a natural fit with our existing Broads Dam project along the world-class
Zuleika shear zone,” Phoenix Managing Director Jon Price said. “By combining this acquisition with the Phoenix
Gold’s existing leases we have consolidated a significant holding containing approximately 14km of the
Zuleika Shear Zone creating a second major exploration project in addition to our advanced projects along the
Kunanalling Shear Zone at Castle Hill”.
“The high-grade resource and surface stockpiles at the Broads Dam project present immediate
opportunities, but it is the potential along strike and at depth that has us most excited. With the
+ 4M oz Kundana gold field to the south and Bullant along strike to the north, this is the right
address to find large high grade gold projects,” he said.
Commenting on the sale of the Blue Funnel Gold Project, a spokesman for Golden Deeps, said: “This
transaction is beneficial to both parties and is indeed a win-win situation. It brings together gold
exploration and enthusiasm for the Zuleika Shear area with the existing mineral Resource at Blue
Funnel and the potential for discovery of deeper lying ore”.
“For Golden Deeps, it provides an opportunity for focussed exploration and potentially
recommencement of mining at Blue Funnel with Golden Deeps maintaining both an ongoing
interest, free carried to the commencement of mining, as well as a $20 per ounce oyalty on all ore
mined”, he said.

I encourage you all to have a look into this very undervalued gold explorer over the weekend. Current resource of 977,000 ounces of gold, $4 million cash and a market cap of only $15 mil. Management have big incentive to increase resource to 1.5 million ounces.

PXGO's a great buy at 5cents.

Brenton Thomas Valuation Report

Code PXG
Name Phoenix
Price $0.240
Review Date 28/05/2011

Num Shares 78,938,326
Market Cap $18,945,198

Num Options 35,983,350
Ex Price $0.200

Diluted Shares 114,921,676
Dil Mkt Cap $27,581,202

Cash $2,807,000
Assets $0
Debt $0


Company Valuation Resource EV

Valuation $1.057
Potential Gain 340.36%
Gold Ounces 992,695 (Based on 992k now currently at 1.39Moz)
Market's Enterprise Value $17,577,532
Market's EV per Ounce $27.78
Resource Enterprise Value $111,452,798
Av JORC EV per Ounce $113.30
Av Discovery EV Per Ounce $50.00

Dam i wish i had seen this thread last week.

Started watching these yesterday and they have just soared up massively!

ASX down >3%

PXG SP has held up brilliantly, news on the way perhaps, but this is definately under the radar, approx MC of 16million
1.4 million ounce resource [inferred] and a 2.2 million ounce target in the near term.

The gold price is soaring and PXG having a Mine, Toll, Truck operation, they just need toll agreements signed and PXG will be a producer.

With cash costs of $850/oz and gold at $1850/oz = high profit margins

of course DYOR

I really like the chart for this company! I may throw in a quick trade in a few days after analysing the price action.

LostMyShirt said:

I really like the chart for this company! I may throw in a quick trade in a few days after analysing the price action.

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Also the fundamentals look good, and most importantly they have good management and an ever increasing resource

bryos said:

Also the fundamentals look good, and most importantly they have good management and an ever increasing resource

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The only thing I find a little worrying is the COG@$850/oz - compared to other producers this is rather high and in order to get a decent valuation would require 1800POG to remain strong as suport excluding some of the outlandish projections given by smoe insto's.

If I get in now I'd be late to the party - better wait for a drop back to trend support.

Looks good. Gold is where it's at. Just bought me a bag of PXGOA.

LostMyShirt said:

If I get in now I'd be late to the party - better wait for a drop back to trend support.

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Possibly true, however I strongly believe that small cap / junior gold stocks are overdue a sharp correction upwards. The valuations presently just don't seem to match up with the current price of gold and if Europe falls apart today's price may end up seeming like bargain basement.

boff said:

Possibly true, however I strongly believe that small cap / junior gold stocks are overdue a sharp correction upwards. The valuations presently just don't seem to match up with the current price of gold and if Europe falls apart today's price may end up seeming like bargain basement.

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Save me the trouble of searching if you will, and tell me how long until production is realized from the current project?

Looking at buy/sell ratio; almost 2.5:1 - I see a price push at a slow rate.

many analysts have already said greece will defiantely default, gold will rise >$2000/oz,

I agree you could be late to the party, but the real party hasn't started yet? (hence the low MC)

One strategy traders use is if you like the company, only commit ~50% of your funds to an entry price (price now) then if it tracks lower, average down
if it tracks higher, be thankful your apart of the party

have to have alot of patience with these juniors, but the multi baggers that eventuate are worth it

PXG seems to tick alot of boxes

refer to latest announce on 2nd of sept - general meeting presentation

catherwood to generate cash flow - december 2011

PXG ~ $20mil market cap for ~1.5million ounces of gold while gold >$1800 is a no-brainer IMHO