PNX Metals Ltd (ASX:PNX) has received a further 9 holes from its infill and extensional drilling at the Mt Bonnie deposit located within the Haye Creek gold-silver-zinc project in the Northern Territory.
Silver assays from the infill drilling within the mineralised envelope appear to be consistently better than previously modelled.
Results include 29 metres at 1.02 g/t gold, 187 g/t silver, 5.26% zinc, 1.44% lead and 0.29% copper.
Results from 14 holes are expected in the coming weeks, followed by a resource upgrade by the end of 2016.
Diamond drilling continues at the Iron Blow deposit, also within the Hayes Creek project and at the Barossa target, located at the nearby Burnside project.
James Fox, managing director, commented: “The assay results received from Mt Bonnie are again excellent.
“The discovery of mineralisation in MBRC057 some 20 metres below the base of the modelled pit-shell and beyond the current resource estimate has the potential to significantly increase the scale of the mining inventory for inclusion into the Hayes Creek pre-feasibility study.”
Background
PNX’s focus is on its four projects located in the Pine Creek Region, 180 kilometres south of Darwin.
- Hayes Creek Project (flagship);
- Burnside Project;
- Moline Project; and
- Chessman Project.
The Hayes Creek project contains the Iron Blow and Mt Bonnie gold-silver-zinc deposits, located less than 3 kilometres apart and situated on granted mineral leases wholly owned by PNX.
The Hayes Creek pre-feasibility study is fully funded and due for completion by May-2017.
It will expand on the scoping study completed in March 2016, which found that mining and processing ore derived from the proposed open-pit and underground operations at Hayes Creek would generate strong financial returns for PNX.
Mt Bonnie assays
Assays from nine new holes at Mt Bonnie include:
- 29 metres at 1.02 g/t gold, 187 g/t silver, 5.26% zinc, 1.44% lead and 0.29% copper from 75 metres including 8 metres at 1.25 g/t gold, 388 g/t silver, 10.01% zinc, 2.73% lead and 0.51% copper; and
- 7 metres at 3.08 g/t gold, 446 g/t silver, 10.93% zinc, 3.19% lead and 0.50% copper from 72 metres.
Full interpretation of the results and their impact on the Mt Bonnie Mineral Resource will occur once the assays from all 27 holes have been received.
An updated mineral resource estimate is expected by the end of 2016 which will be a key component of the fully funded Hayes Creek pre-feasibility study due for completion by May, 2017.
Analysis
The assays from Mt Bonnie confirm the geological model, which adds value by de-risking the project.
Furthermore, assays have shown mineralisation to extend beyond the predicted depth of the existing resource boundary and provide the potential to model an expanded open-pit scenario.
This could potentially be included in the fully-funded Hayes Creek pre-feasibility study.
The assays yet to be received at Mt Bonnie will be highly anticipated as most sit outside of the existing resource estimate.
News flow is expected to continue with assays from 14 holes pending and drilling ongoing at two other prospects.
Shares in PNX are up 130% year to date, currently trading at $0.023.