Phoenix Gold's Castle Hill Project Proceeds to Definitive Feasibility Study

---

Researched by Industrial Info Resources Australia (Perth, Australia)--Kalgoorlie-based gold company Phoenix Gold Limited (ASX:PXG), located in the resource-rich region of Western Australia, has progressed to a definitive feasibility study on its Castle Hill project after recently reporting positive results from its scoping study.

Phoenix Gold completed scoping studies for mineral resource results for the project in August 2012. The mining studies for the particular processing requirements were announced in October 2012. The results indicated that the project initially will be based on a mining timeframe of approximately four years, extracting up to 135,000 ounces per annum of gold from the deposit.

The definitive feasibility study is projected to cost AU$1.5 million (US$1.45 million) and will cover fundamental information for the company, including hydrology/hydrogeology, process facility design, power design requirements and geological interpretation and mining. The definitive feasibility studies are expected to be completed by December of this year.

The company has announced that it will be outsourcing the studies of the mining and processing requirements to Mintrex Pty Limited. Mintrex consults on a number of project requirements, such as engineering, staff and asset management, and the extraction of minerals. It is currently working on several gold, copper and iron ore projects.

The Castle Hill estimated capital cost of AU$131 million (US$126.45 million) has included the rough cost breakdown of a three-stage crushing circuit and single-stage ball mill, completed by carbon-in-pulp circuit and heap-leaching.

Throughout the definitive feasibility study, Phoenix Gold is also planning on developing results on the Red Dam resource, located 12 kilometres from the Castle Hill project. The study includes the option of mining underground. The Red Dam resource initially was treated as a collective resource attached to the Castle Hill project. The company has indicated that it could treat Red Dam as its own separate project, if the results indicate so.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.