Phoenix's flagship project, the Castle Hill Project, is the latest large-scale gold discovery in Western Australia's goldfileds. Mineralisation has been drilled over a strike length of 9 kilometres of the Kunanalling Shear and adjacent Kintore Tonalite and hosts both high-grade lode-style and bulk, lower-grade deposits.

Mineral resources currently stand at over 1 million ounces of gold, representing a 4-fold increase in the past 2 years and with excellent potential to continue to increase towards 2 million ounces. The Company will do this by continuing the current strategy of drilling for extensions along strike as well as at depth below the current limits of drilling (average 70m).

Exploration

Exploration in 2011 & 2012 has focused on growing the resource by delineating extensions to high grade gold mineralisation along the Kunanalling Shear, adjacent to the large Mick Adam tonalite-hosted mineralisation. 

Significant intercepts from drilling completed in late 2011 include:

• 13 metres at 7.4g/t Au from 57 metres (including 1m @ 83.9g/t)
• 7 metres at 6.9g/t Au from 67 metres (including 3m @ 12.4g/t)
• 2 metres at 6.0g/t Au from 23 metres
• 11 metres at 4.1g/t Au from 89 metres (including 1m @ 25.4g/t)
• 10 metres at 9.92g/t Au from 18 metres (including 2m at 27.36g/t)
• 15 metres at 6.63g/t Au from 39 metres (including 2m at 39.25g/t), and
• 8 metres at 7.32g/t Au from 60 metres

Significant intercepts from follow-up drilling in 2012 include:

• 52 metres at 1.38g/t Au from 40 metres (including 12m at 2.54g/t)
• 29 metres at 0.79g/t Au from 51 metres
• 26 metres at 0.75g/t Au from 31 metres
• 11 metres at 0.97g/t Au from 27 metres
• 3 metres at 4.1g/t Au from 21 metres, and
• 4 metres at 2,13g/t Au from 9 metres.

Mineralisation & Geology

Castle Hill lies on the Kunanalling Shear Zone, a prominent regional-scale structure, analogous to the Zuleika Shear, with documented gold occurrences along its entire length. The Kintore Tonalite which hosts much of the mineralsiation is a 2km wide intrusion that rapidly lenses out in the vicinity of Mick Adam to a width of 100m. In the vicinity of Mick Adam it splits into several complex lenses. East of Mick Adam it resolves into a single body extending south to the Wadi mineralisation. South of Wadi it is terminated by northerly trending dextral faults.

Mineralisation is hosted within the tonalite as disseminated gold associated with pyrite and arsenopyrite, and with narrow quartz pyrite rich veins and shears associated with brecciation along the tonailte margin. Gold mineralisation is also found within the basalt unit to the west, where it is associated with numerous porphyritic intrusions and shearing between the porphyry margins and adjacent basalt. Gold mineralisation is also found on the eastern margin of the tonalite in narrow porphyritic intrusions sub-parallel to north-east trending structures, this gold mineralisation was first mined in the 1900's.

Mineralisation is near surface, free milling material and comprises both large tonnage base-load style mineralisation adjacent to higher-grade shear-hosted lodes.

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