A Rare Setup in the ASX Gold Space
Most retail investors find gold stories after the re-rating. After the resource upgrade hits, the scoping study drops, and the share price doubles from where it sat six months earlier. By then, the easy money is gone.
That’s why this week matter…
Resources & Energy Group (ASX: REZ) just delivered a material resource upgrade at its East Menzies Gold Project in Western Australia — and the market barely flinched.
At a A$12 million market cap, this is still priced like an early-stage explorer. The fundamentals say otherwise.
With a newly upgraded ~100koz resource at East Menzies, including 92% Indicated at Goodenough, REZ is starting to move beyond exploration into something more tangible.
The company has already completed three gold pours, holds approval for onsite processing, and is advancing under a gold price environment of ~A$6,300/oz — well above the assumptions used in its project modelling.
What makes this interesting isn’t just where REZ is today, but where it could be heading. The latest resource update is based largely on historical data reinterpretation, with fresh drilling results pending. In other words, this may be the beginning of a broader resource growth cycle, not the end.
At a ~A$12m market cap, the valuation disconnect is clear — particularly for a company with a growing multi-deposit resource base, demonstrated production capability, and a credible pathway to near-term cash flow.
In a strong gold price environment, that combination is rare.
The Simple Story
REZ controls a consolidated ~100km² land package in the Eastern Goldfields of Western Australia — one of the most productive gold corridors on the planet. W
e’re talking the neighbourhood of Kalgoorlie, Sunrise Dam, Tropicana, and Granny Smith. This belt has produced tens of millions of ounces historically and continues to host some of Australia’s most profitable operations.
The project isn’t one deposit. It’s a growing multi-deposit system — Goodenough, Gigante Grande, Maranoa, and Granny Venn — now totalling over 101,000 ounces of gold across combined JORC resources.
The Resource Upgrade
On 23 March 2026, REZ announced an updated JORC Mineral Resource at Goodenough: 1.36 million tonnes at 1.40 g/t gold for 61,200 ounces. That’s a 33% increase in contained gold from the previous 2020 estimate.
More importantly, 92% of the resource is now classified as Indicated — up from 55%. That’s the kind of confidence level that supports mine planning.
Combined with Gigante Grande (~40,700 oz), East Menzies now hosts a coherent 100koz+ gold system. And this should be viewed as the starting point, not the finish line — drilling results are still pending, and multiple targets remain untested across the broader tenement package.
Not Just Dirt — They’re Already Pouring Gold
Here’s where REZ separates from most junior explorers: they’ve already completed three gold pours and hold approval to process up to 40,000 tonnes onsite at Maranoa. This isn’t a conceptual asset. Gold has been mined here historically — and more recently — at a profit.
With gold trading above A$6,000/oz and REZ’s pit optimisation based on A$5,000/oz, there’s significant embedded upside in every economic assumption underpinning the project.
The Valuation Gap
At ~A$0.013 per share, REZ trades at roughly A$95–105 per resource ounce. That’s the low end of the explorer range — for a company that already has Indicated resources, production capability, granted mining leases, and sits in a tier-1 gold district. A modest re-rating toward A$200/oz EV on a base case of ~120koz implies a share price around A$0.028 — more than double from here.
What to Watch
Pending drill results at Goodenough and Gigante Grande targeting further resource growth. Continued gold production and processing scale-up. Progress toward a Scoping Study. Each of these is a potential catalyst within the next 6–12 months.
This is early. The market hasn’t priced in the upgrade. That’s either an oversight or an opportunity — and those don’t usually stay open long.
Disclaimer
This report was commissioned by Resources & Energy Group (ASX: REZ). Cashu Research received fees for its preparation. We provide only general financial product advice. You should note that general advice does not relate specifically to you and is prepared without taking into account any of your objectives, financial situation or needs. As a result, before acting on the general advice, you should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. You should consider seeking the advice of relevant legal, taxation, superannuation, financial and/or other relevant advisors before the information is acted on. The general advice provided relates to securities which are listed on an exchange (usually the Australian Stock Exchange). You should consider any information published by the listed company (including, without limitation, any prospectus, ASX announcements, or other investor updates published by the relevant company) before acquiring or investing in any shares. Whilst Cashu Research has taken reasonable care, there is no guarantee by either Cashu Research, or its AFSL provider, ASG, that the information in this Research Report is accurate or up to date. Cashu Research or Cashu Group may receive fees for research or corporate communication services from companies mentioned in this report. Cashu Research, its directors, employees or associates may hold or trade securities in these companies and may change such holdings without notice. The general advice in this Research Report is provided by Cashu Research. Cashu Research is part of Cashu Technologies Pty Ltd, which is an authorised representative (AR # 001318029) of Adviser Solutions Group Pty Ltd (ABN 88 601 875 521) (AFSL 485946) (ASG). Report prepared by Cashu Research, a division of Cashu Group. This report has been authored and issued by the analyst(s) named herein.