Resource Open at Depth and Northwest: What’s Next for REZ’s Gigante Grande?
Resources & Energy Group Limited (ASX, REZ) has announced its first inferred mineral resource at the Gigante Grande prospect, part of the East Menzies Gold Project in Western Australia, marking a significant milestone with 40,700 ounces of gold identified within an optimised open pit shell.
- Maiden inferred resource of 1.39 million tonnes at 0.91 g/t gold for 40,700 oz
- Resource includes near-surface saprolite and in situ granite-hosted mineralisation
- Mineralisation remains open northwest and at depth, indicating growth potential
- Resource constrained within a 700m x 300m x 120m optimised open pit shell
- Extensive historical and recent drilling data underpin the resource estimate
A New Chapter at Gigante Grande
Resources & Energy Group Limited (ASX, REZ) has taken a decisive step forward in its East Menzies Gold Project with the announcement of a maiden inferred mineral resource at the Gigante Grande prospect. The estimate, completed by ERM Consultants under JORC 2012 standards, quantifies 1.39 million tonnes grading 0.91 grams per tonne gold, equating to approximately 40,700 ounces. This milestone confirms the prospect’s potential as a significant contributor to REZ’s portfolio.
Multiple Mineralisation Styles and Development Pathways
The resource notably includes both near-surface saprolite mineralisation and in situ granite-hosted gold, offering multiple avenues for future development. The saprolite zones, enriched by supergene processes, provide a relatively accessible target, while the underlying granite-hosted veins suggest a robust mineral system with potential for higher-grade extensions. This duality enhances the project’s flexibility in exploration and mining strategy.
Open Pit Optimisation and Economic Confidence
The resource is constrained within an optimised open pit shell measuring approximately 700 meters long, 300 meters wide, and 120 meters deep. This shell was generated using conservative assumptions, including a gold price of A$5,000 per ounce and a 90% processing recovery. The resulting strip ratio of 7.2, 1 is within industry norms for open pit operations, providing a preliminary economic framework that supports further investment and exploration.
Room to Grow, Open Mineralisation and Future Drilling
Importantly, the mineralisation remains open to the northwest and at depth, highlighting clear targets for resource expansion. The current inferred classification reflects relatively wide drill spacing and significant grade variability, underscoring the need for infill and step-out drilling. REZ has identified priority zones for upcoming drilling campaigns aimed at converting inferred resources to higher confidence categories and testing the extent of in situ mineralisation beneath the supergene blanket.
Building a Tier 1 Gold Asset in Western Australia
Managing Director J. Daniel Moore emphasised the strategic significance of this resource, positioning Gigante Grande alongside REZ’s high-grade East Menzies prospects. The combination of scale and grade across the project portfolio enhances the company’s standing in the competitive Western Australian gold sector. With a comprehensive database of historical and recent drilling underpinning the resource, REZ is well placed to refine its exploration strategy and advance towards economic extraction.
Bottom Line?
Gigante Grande’s maiden resource lays a solid foundation, but upcoming drilling will be critical to unlocking its full potential.
Questions in the middle?
- How will upcoming drilling programs refine the resource confidence and expand the mineralisation?
- What metallurgical characteristics and recovery rates can be expected from the saprolite and in situ mineralisation?
- How might evolving gold prices and operational costs impact the economic viability of the Gigante Grande deposit?
