East Menzies Soil Sampling Underway: What Risks Could Delay REZ’s Drilling Plans?
Resources & Energy Group Limited has kicked off an extensive soil sampling program at its East Menzies Gold Project, aiming to refine exploration targets and build on its maiden resource at Gigante Grande.
- 1,500 soil samples to be collected across underexplored zones
- Sampling uses CSIRO’s UltraFine+ assay method for enhanced detection
- Supports recent maiden Inferred Mineral Resource of 40,700oz gold at Gigante Grande
- Drill planning and heritage clearances progressing at Gigante Grande and Goodenough
- Approvals from Department of Mines, Petroleum and Energy expected soon
Exploration Momentum Builds at East Menzies
Resources & Energy Group Limited (ASX – REZ) has initiated a systematic soil sampling campaign across its East Menzies Gold Project in Western Australia, targeting areas that have seen limited prior geochemical testing. This move follows the company’s recent milestone of defining a maiden Inferred Mineral Resource at the Gigante Grande deposit, which hosts approximately 40,700 ounces of gold.
The program involves collecting around 1,500 soil samples from three key zones within the tenement package. These samples will be analyzed using the CSIRO UltraFine+ assay technique, a method known for its sensitivity in detecting gold and associated pathfinder elements in fine soil fractions. This approach is expected to sharpen the company’s understanding of the mineralisation footprint and help identify new drill targets.
Strategic Target Generation and Drilling Plans
The soil sampling is designed to complement the dataset underpinning the recent maiden Mineral Resource Estimate (MRE) at Gigante Grande, which reported 1.39 million tonnes at 0.91 grams per tonne gold. By extending exploration into previously underexplored corridors adjacent to known mineralisation, REZ aims to expand its pipeline of prospective targets.
Meanwhile, preparations for the next phase of drilling are advancing steadily. Heritage clearances are underway, and approvals from the Department of Mines, Petroleum and Energy (DMPE) are anticipated shortly for both Gigante Grande and the nearby Goodenough prospect. These steps are critical for transitioning from surface sampling to resource definition and potential resource expansion.
Positioning for Discovery-Led Growth
REZ’s Managing Director, J. Daniel Moore, emphasised the significance of the maiden resource and the current soil sampling program as foundational to the company’s growth strategy. He highlighted that combining established resources with new near-surface exploration opportunities positions REZ well for a period of discovery-led advancement.
As the company integrates new geochemical data with existing geological models, investors will be watching closely for assay results and the subsequent impact on drill targeting. The East Menzies project, with its extensive tenement package and innovative processing ambitions, remains a focal point for REZ’s efforts to unlock value in Western Australia’s prolific gold belt.
Bottom Line?
With soil sampling underway and drilling approvals imminent, REZ is poised to deepen its East Menzies footprint and potentially expand its gold resource base.
Questions in the middle?
- When will the results from the UltraFine+ soil assays be released, and how might they influence drilling priorities?
- What are the expected timelines for DMPE approvals and commencement of drilling at Gigante Grande and Goodenough?
- Could the soil sampling reveal new high-grade zones that significantly alter the project’s resource potential?
