Resources & Energy Group Limited advised that drilling operations at the company's East Menzies Goldfield have commenced. This is the REZ's opening exploration campaign for 2023. The work is investigating four prospect areas within the goldfield and includes the Springfield, Goodenough, Maranoa, and the Sunday/Viking prospects.

A total of 14 holes will be completed during this campaign for an advance of approximately 1400m. At Springfield (P2902500), drilling investigations are following up several shallow Electro Magnetic (EM) conductor anomalies which were identified by geophysical Investigations completed by REZ in late 2022. The areas of interest are located in the broader Springfield Prospect area, where earlier scout investigations encountered anomalous and highly encouraging Nickel sulphide mineralization, with a peak result of 1.78% Ni, 0.21% Cr, 5% S, 269ppm Mo and 245ppm Cu from 98m from borehole SFRC001.

Subsequent petrological work on samples from this drilling indicated the presence of recrystallised Ni-Fe sulphides of primary magmatic origin. The host rocks were identified as Birbirites, a highly silicified form of Komatiite. At Maranoa (M29/427), three holes are testing an interpreted down dip extension to the Maranoa lode, which is located at the northern end of the historic workings.

Earlier investigations by the Company have confirmed that a significant part of the northern lode has not been mined out and may present an immediate opportunity for open cut mining operations. An extension to the resource would enhance and improve the overall viability of this concept. To the east of Maranoa three holes are also planned for M29/434, and more specifically the Sunday and Viking prospect, where near surface gold mineralisation was intersected in MRC37 with 5m@4.1gt/au from 7m down the hole.

The Sunday prospect is only 250m east of Maranoa and has potential to be bulked together to support a larger scale of mining operations with Maranoa. In this connection, M29/427 is a granted mining lease and M29/434 is a mining lease application that has proceeded to Section 31 Native Title Negotiations. M29/427 and M29/434 are contiguous with M29/189 (Granny Venn), which provides access to existing fit for purpose infrastructure.

This includes a 2.5km long haul road with direct access to a turn-out onto the Goldfields Highway from the mine site. ROM stockpile pads and hardstands, with cleared levelled areas suitable for administration facilities and HEMM traffic, have also been retained on site following recent mining activities at Granny Venn. At Goodenough (M29/141), three holes are planned.

The Goodenough prospect is already the subject of a JORC mineral resource estimate comprising 37.5k oz indicated and 5.2k oz inferred for a total Indicated and Inferred estimate of 42.7k oz of Gold. Modelling work completed by the Company indicated that further peripheral and deeper drilling could improve the mineralized footprint and grade of the Goodenough resource, and in particular a higher-grade area which could support an initial mine cut.