Ann: Phoenix signs Catherwood Gold Mine developme, page-2

re: Ann: Phoenix signs Catherwood Gold Mine d... HIGHLIGHTS
• Agreement executed for the development of Catherwood Stage One
• Stage One will generate substantial cash flow for Phoenix
• Norton to fund working capital with development planned to commence in three months
• Norton to mine and haul ore to their 3.5M tpa Paddington mill for processing
• Stage 1 production is estimated at 19,000 ounces at a grade of 2.4g/t1
• Phoenix will use cash generated to fund exploration and studies on larger projects


Under the terms of the RTMA, Norton will fund the mining, haulage and treatment of ore from Stage One of Catherwood cut back. Phoenix will retain ownership of the Project and all associated tenements.

Ore will be processed at Nortons 3.5M tpa Paddington processing facility located approximately 35 kilometres east of Catherwood. All ore haulage will ustilise existing haul roads.

Payment to Phoenix will comprise an initial deposit, prior to mining commencing, after which payments will be made to Phoenix on an agreed rate per ounce of gold recovered. The payments to Phoenix have a guaranteed floor price and Phoenix share in any upside should the mine exceed production estimates.

The agreement covers the mining of Stage One of the Catherwood Mine comprising a cutback, to the south eastern wall of the existing pit, exposing the hanging wall lodes containing an estimated 19,000 ounces grading 2.4g/t1. Phoenix retains 100% ownership of the project and will continue to explore the significant potential for mineralisation along strike and particularly at depth.