Phoenix Gold’s (ASX: PXG) shares are flying high today with...

Phoenix Gold’s (ASX: PXG) shares are flying high today with shares currently trading at A$0.34, up 7.94% from last nights close with more than 1 million shares traded.

The stock was trading at $0.195 on 1 August 2012.

On August 6 Proactive Investors wrote: "Phoenix's EV/Resource ounce valuation of around $10 per gold ounce appears tardy compared to a peer average which could be considered closer to $50."

Shares had hit a intra-day high of $0.345 before easing slightly to current levels.

The company has recently started an extensive $20 million drilling campaign starting at Castle Hill, with the program to cover 215,000 metres over the next 15 months.

This targets a 4 million gold ounce interim resource.

Drilling will include lateral and depth extension drilling combined with infill and sterilisation drilling planned at Kunanalling and Zuleika shear zones, which is around 50 kilometres from the regional mining centre of Kalgoorlie - Boulder.

This will cover both the Castle Hill and Broads Dam projects.

The first drill results are expected in the March quarter of 2013. A Definitive Feasibility Study is to be completed by the end of 2013.

Castle Hill has a current Resource of 21.71 million tonnes at 1.5g/t gold for 1,059,000 ounces while Broads Dam holds 5.32 million tonnes at 2.2g/t gold for 377,000 ounces.

http://www.proactiveinvestors.com.au/companies/news/36663/phoenix-gold-soars-as-exploration-moves-into-high-gear-36663.html