Transcription of The Stock Network Interview with Resources & Energy Group (ASX:REZ) CEO and Managing Director Daniel Moore
Lel Smits: Resources and Energy Group is transitioning from explorer to producer at its flagship Menzies Gold project in Western Australia. With recent drilling upgrades, gold pours underway and a self-managed batch leach processing facility operating on-site, Resources and Energy Group is gaining momentum. The company has also strengthened its balance sheet with the sale of Mount McKenzie in Queensland for $2.5 million plus a recently completed $1.1 million capital raise, ensuring it is well-funded for its next phase of growth. Ahead of appearing at Sydney Mining Club, its CEO and Managing Director Daniel Moore joins me from Resources and Energy Group. Daniel, welcome to the Stock Network.
Daniel Moore: Thank you, Lel. Good to be here.
Lel Smits: Now, Resources and Energy Group is making the shift from exploration to production with gold pours now underway at East Menzies. What does this milestone mean for the company and how close are you to generating cash from production?
Daniel Moore: Well, this is our second attempt of producing cash from gold production. Our first was in 2021-22, where we delivered about 8,000 ounces of gold. Now, this year, we’ve managed to move beyond just being an explorer again. I just highlight we have done this in the past, and we’ve poured this gold on our own terms, in the sense that we’ve managed to actually process the gold at site in Menzies.
Our first two gold pours this year, we produced around 34 ounces, which is about $160,000 worth of gold at record high prices. I remember selling some gold earlier on the previous month for around $5,130. We’ve demonstrated that our self-managed BAT leach process works, and we’re scaling that up now.
With approvals pending for additional BATs, we’re very close to generating consistent cash flow from our production. Combined with the $2.5M from the sale of Mt McKenzie that’s been announced, which should close fairly soon, and the $1.1M raised in our recent cover raising this morning, we think we’re in a good, strong funding position as well to unlock the exploration and gold production during a very, very strong gold price environment.
Lel Smits: Excellent. Congratulations on the raise. Now, East Menzies sits in a historic, highly productive area just north of Kalgoorlie. What makes this landholding so valuable? And also, can you outline what’s next, really, in terms of development across your footprint?
Daniel Moore: Yes. It is very special. There’s only about 10 of these across the state of WA, where you’ve got a bunch of prospecting leases. We’ve managed to, over the years, put together about 100km2 of contiguous prospecting, exploration and mining leases, because we are currently mining in the district of Menzies.
If you look up through WA, you start with Norseman and moves on to Kalgoorlie, the Paddington area, you get to Menzies, and there’s a bit of a black hole there because the tenements are traditionally owned by prospectors. We put them together, and we think we’ve got one of the bigger contiguous packages of prospecting leases in the area. This gives the scale of Fishers’ New Village to unlock the true district-scale opportunity of Menzies.
What we call internally, we get in a bit of trouble for this externally all the time, but we call it the Superfit 2.0 project. We are only 130km from the Superfit, and we would hope one day that we have delivered and produced not necessarily something as big as the Superfit, but something which is definitely on the map within Gold. What’s next for us is continuing to grow production in Maranoa.
That’s where we’re currently getting the ore from for and advancing Gigante Grande. That name will live up to its name. Gigante has taken a big, big, and we hope that one day we can have a discovery there.
It needs a lot of drilling, but we think it looks pretty good. We’ve also got some old brownfields Gold areas to look at as well. We’re leveraging historically high Gold prices, and we’ve now managed to consolidate to just be focused on Western Australia by getting rid of our Queensland project, Mount McKenzie, which was a really great deal given that we get some upside by holding on to some shares in Queensland mines, which has done exactly what we’re doing, is consolidated a whole basin of projects together.
Lel Smits: Fantastic. Thank you for outlining your plans for Resources and Energy Group. Exciting times for the company and look forward to hearing more at Sydney Mining Club.
Daniel Moore: Thank you, Lel.
Ends