Resources and Energy Group Limited (ASX:REZ) is pleased to provide an update on the East Menzies Gold Project (EMGP) which is located within the Springfield Gold Corridor.

• REZ has entered into a profit-sharing agreement with BM Mining to investigate and exploit economically recoverable remnant resources at the Granny Venn mine in East Menzies.
• Orebody modelling has identified four high priority targets within the footprint of the existing Granny Venn Pit.
• Pit dewatering has been completed and Grade Control Drilling has commenced on the first four target areas.
• Subject to a successful drilling outcome, BM Mining will manage subsequent planning and mining operations with work expected to commence within the next quarter. There are no further up-front costs for REZ.

Overview

Resource modelling and pit optimisation studies to investigate opportunities for renewed mining operations targeting remnant resources at M29/189 Granny Venn in the Springfield Corridor have now been completed. The work has focussed on a cut- back to exploit a sub vertical extension to the main ore body which is located on the North East side of the Granny Venn Pit.

In parallel, the company has entered into a profit share mining agreement with BM Mining who will further investigate the resource and subject to feasibility, manage mining operations to recover the resource. It is anticipated mining will commence in the next 3 months.

BM Mining is part of the BM Geological Services (BMGS) group of companies who have been active in the mining industry in the Goldfields of Western Australia since 2003. The companies head office is in Kalgoorlie WA and they specialise in mineral resource evaluation and the low-cost exploitation of these resources. The parties have also agreed to consider other suitable mining operations in the Springfield Venn corridor at East Menzies.

About Resources and Energy

Resources and Energy Group Limited (ASX: REZ) is an independent, ASX-listed mineral resources explorer, with projects located in key mining jurisdictions in Western Australia and Queensland.

Location of East Menzies and Mount Mackenzie Project

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