Highlights

  • Goodenough Gold Deposit Mineral Resource increased to 1.36 Mt @ 1.40 g/t Au, containing 61,200 ounces of gold—a 54% increase in tonnage and 15,090 oz more gold.
  • Majority of the resource (56,400 oz) classified as Indicated, supporting stronger confidence in resource continuity.
  • REZ shares rose 7.69% to $0.014 following the resource update, reflecting investor optimism for the East Menzies Gold Project.

Resources & Energy Group Limited (ASX:REZ) continues to expand its footprint in Western Australia’s gold sector with an upgraded mineral resource at the Goodenough Gold Deposit, part of its East Menzies Gold Project (EMGP). The project, located 130 km north of Kalgoorlie, encompasses over 50 tenements spanning 103 km² and hosts multiple gold deposits along the Springfield Venn Gold Corridor.

The recent announcement increases the Goodenough Mineral Resource to 1.36 million tonnes at 1.40 g/t Au for 61,200 ounces of gold, representing a significant step forward compared to the 2020 estimate. This upgrade has been reflected in the share market, with REZ closing up 7.69% at $0.014, on a trading volume of 3.1 million shares and a market capitalisation of AUD 11.90 million.

Share Price Performance

REZ’s share price demonstrated positive momentum following the resource announcement. The 7.69% gain highlights the market’s recognition of the value uplift resulting from:

  • A 54% increase in tonnage at the Goodenough deposit.
  • 15,090 ounces of additional contained gold.
  • Majority of resource now classified as Indicated, supporting continuity and potential economic extraction.

Trading volumes of over 3 million units indicate heightened investor interest, though still modest relative to larger ASX-listed gold producers. The increase underscores the sensitivity of junior mining stocks to material resource upgrades, particularly in strategic gold regions like Kalgoorlie.

Goodenough Gold Deposit: Resource Overview

The Goodenough Gold Deposit has been re-estimated under JORC 2012 guidelines, reflecting increased confidence in the deposit’s tonnage and grade:

  • Total Resource: 1.36 Mt @ 1.40 g/t Au for 61,200 oz.
  • Indicated: 1.27 Mt @ 1.38 g/t Au for 56,400 oz.
  • Inferred: 87,000 t @ 1.72 g/t Au for 4,800 oz.

This represents a 54% increase in tonnage and a 32% increase in contained ounces relative to the previous 2020 estimate. The resource remains open to the southwest, east, and at depth, offering potential for further expansion through additional drilling.

The resource is constrained within optimised open pit shells, demonstrating reasonable prospects for eventual economic extraction. Over 90% of the resource is classified as Indicated, suggesting high confidence in continuity and grade distribution, a critical factor for project evaluation and planning.

Geology and Mineralisation

Gold mineralisation at Goodenough occurs predominantly in a siliceous (cherty) pyritic horizon at the contact between felsic footwall and mafic hangingwall metavolcanics. Key geological features include:

  • Regional Synform: Deposit located on the hinge of a broad regional synform structure, with parasitic fold thickening enhancing mineralisation.
  • High-Grade Plunging Shoots: Four recognized plunging shoots with angles between 23°–45° to the south, contributing to concentrated gold zones.
  • Hangingwall and Footwall Mineralisation: Additional mineralised shears in the hangingwall and a single footwall zone contribute to the overall resource.
  • Open Along Strike and at Depth: Mineralisation remains open, indicating potential for resource expansion with further exploration.

The deposit’s geometry and multiple mineralised shoots provide flexibility in potential mining strategies and support a bulk-tonnage approach while maintaining high-grade zones for selective extraction.

Historical Context and Project Integration

The Goodenough resource complements other gold prospects within the EMGP, including:

  • Maranoa: 46k tonnes @ 5.7 g/t Au (8,000 oz inferred).
  • Gigante Grande: 1.39 Mt @ 0.91 g/t Au (40,700 oz inferred).

The combined resources form a multi-deposit framework, enhancing REZ’s exploration potential and providing opportunities for integrated mining operations. The updated Goodenough resource is central to REZ’s strategy to grow its gold portfolio and move beyond small-scale mining, leveraging high-confidence Indicated resources to inform development planning.

Operational and Exploration Outlook

REZ has outlined several next steps for the East Menzies Gold Project:

  1. Continued Drilling: Additional drilling to expand resource along strike and at depth, particularly in the southwest, east, and underexplored zones.
  2. Exploration Targeting: High potential at Gigante Grande and surrounding Central Domain Exploration Target for further resource growth.
  3. Data Review and Integration: Use of updated geological and assay data to refine exploration models and guide resource prioritisation.
  4. Optimisation for Economic Extraction: Resource estimates constrained within optimised open pit shells to demonstrate reasonable prospects for mining feasibility studies.

These activities align with REZ’s strategy to convert Inferred resources into Indicated and Measured classifications while expanding overall contained ounces across the EMGP.

Market Context and Investor Implications

The East Menzies region remains an active exploration frontier within the Kalgoorlie gold belt. Investor interest in REZ has been driven by:

  • The consistent upgrade of gold resources at Goodenough.
  • Exposure to high-grade shoots near surface, providing potential for lower-cost mining.
  • Multi-deposit exposure across EMGP, including Gigante Grande and Maranoa.

The share price increase of 7.69% post-announcement reflects market acknowledgement of REZ’s enhanced resource base and prospects for further growth. As a junior exploration company, REZ remains sensitive to exploration results, commodity prices, and investor sentiment, but the recent upgrade strengthens the company’s position in the WA gold sector.

Conclusion

Resources & Energy Group has successfully increased the Goodenough Gold Deposit Mineral Resource to 1.36 Mt @ 1.40 g/t Au for 61,200 ounces, representing a 54% increase in tonnage and additional 15,090 ounces of gold. The high proportion of Indicated resources, near-surface geometry, and open potential along strike and at depth reinforce the deposit’s strategic importance within the East Menzies Gold Project.

The market responded positively, with shares rising 7.69%, reflecting increased investor confidence in REZ’s gold portfolio. This resource upgrade, in combination with surrounding deposits like Gigante Grande and Maranoa, enhances the company’s prospects for multi-deposit development and positions REZ as a junior explorer with growing resource credentials in a prolific Western Australian gold belt.

Frequently Asked Questions (FAQs)

  1. What is the total gold content of the updated Goodenough Mineral Resource?

The updated Mineral Resource totals 61,200 ounces of gold, with the majority (56,400 oz) classified as Indicated.

  1. How has the Goodenough Resource changed compared to 2020?

The tonnage increased by 54%, and contained gold rose by 15,090 ounces, reflecting improved geological understanding and additional data integration.

  1. What are the geological features of the Goodenough Deposit?

Gold occurs in a cherty pyritic horizon at the footwall-hangingwall contact, with multiple plunging high-grade shoots and additional mineralised shears in the hangingwall and footwall.

  1. Are there opportunities to expand the resource further?

Yes, the resource remains open to the southwest, east, and at depth, and further drilling could increase both tonnage and contained ounces.

  1. How does Goodenough fit within REZ’s broader East Menzies Project?

Goodenough complements other gold deposits like Maranoa and Gigante Grande, forming a multi-deposit system along the Springfield Venn Gold Corridor, enhancing overall project potential.