Resources and Energy Group says it has brought on a mining engineer at Mount Mackenzie in Central Queensland to run the administrative process to prepare the site for mining to commence.

The company included the update on its Queensland silver-gold project in an announcement upon completion of a share placement to raise $2.7 million.

Much of the focus was on the start of gold production at the Menzies mine site in Western Australia via a joint venture with BMGS at the Granny Venn tenements.

However it has been moving forward at Mount Mackenzie as well, with the start of environmental and hydrological studies.

During the the past quarter the company completed a water supply assessment of the project site to identify options for securing a reliable water supply.

It found that an adequate and reliable water supply was available. One option is a direct allocation of water from the regulatory authority, which has reserved capacity for regionally significant projects.

To trigger the process, Resources & Energy Group has lodged a submission for the project to be declared regionally significant.

The company also engaged CQG consulting to assist in managing the environmental and approvals process for the project.

Metallurgical investigations on a range of composites prepared from bore core samples at Mount Mackenzie have
commenced in Western Australia under the supervision of JT Metallurgical Services.

The current resource at Mount Mackenzie has been estimated at 3.42Mt at 1.18g/t gold and 9g/t silver for a total of 129,000 oz gold and 862k oz silver.