Resources & Energy Group Ltd - signs binding term sheet for Maranoa Gold Production

Resources & Energy Group Ltd (ASX:REZ) has announced the commencement of gold production at the Maranoa deposit within its East Menzies Gold Project in Western Australia, following regulatory approvals from the Department. This development marks a key step in the company’s strategy to generate near-term cash flow and advance its consolidated tenement package. The initial phase involves processing 5,000 tonnes of ore through a vat leaching facility, a low-cost and efficient method of gold extraction.

The company’s Managing Director, Daniel Moore, emphasized that the timing of the production restart aligns with historically high gold prices, currently trading at approximately $3,995.92 per ounce. The Maranoa deposit was previously identified as a high-grade target following shallow drilling in 2022, which returned significant gold intersections, including 1m @ 32.7g/t Au. The production from this phase is expected to support further exploration of other high-grade deposits within the East Menzies area, including Goodenough and Granny Venn.

Resources & Energy Group has also secured $2 million in funding through a share placement to advance the East Menzies Gold Project. The company plans to expand operations to additional targets following the initial phase, with the first gold pour anticipated in the coming weeks. The East Menzies Gold Project, located 130km north of Kalgoorlie, spans 103km² and includes over 50 tenements. The project is part of the broader historical Menzies goldfield, which has a long history of gold production dating back to the late 19th century.