PNX Metals Ltd (ASX:PNX) has drilled out a new near-surface southerly extension to mineralisation at Mt Bonnie deposit located within the Haye Creek gold-silver-zinc project in the Northern Territory.
Assay results were received from a further 12 holes which discovered two distinct zones, an upper gold-silver-lead primarily oxide zone and a lower zinc-gold zone.
Results include 6 metres at 2.61 g/t gold, 345 g/t silver, 0.22% zinc, 3.22% lead and 0.4% copper from 3 metres depth.
Results from the remaining two holes in the program are expected in the coming weeks, followed by an updated resource estimate 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 discovery of a near-surface extension to mineralisation at Mt Bonnie is an exciting new development.
“Additional drilling and metallurgical test work are being planned to ensure the predominantly oxide silver-gold-lead mineralisation can be included in the new resource estimate, and in any expanded open-pit scenario within 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 the latest 12 holes at Mt Bonnie include:
- 6 metres at 2.61 g/t gold, 345 g/t silver, 0.22% zinc, 3.22% lead and 0.4% copper from 3 metres; and
- 4 metres at 2.45 g/t gold, 431 g/t silver, 0.30% zinc, 3.17% lead and 0.43% copper from 11 metres.
A new near-surface southerly extension to mineralisation has been discovered that extends approximately 100 metres beyond the limits of previous drilling to directly beneath the Southern Gossan, and remains open to the south and at depth.
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.
New drilling planned
As this whole area sits outside the limits of the existing resource boundary, four new holes are planned, as well as the deepening of one existing hole.
This new mineralisation will be modelled for use in the updated mineral resource estimate and in any expanded open-pit scenario for inclusion in the fully-funded Hayes Creek pre-feasibility study.
This drilling will likely occur during November.
Analysis
The discovery of near surface mineralisation has the potential to not only expand the current resource but do so with near-surface mineralisation capable of being easily mined.
The mineralisation remains open to the south and at depth and will provide for additional drill targets next year.
These assays build on the first batch which showed mineralisation to extend beyond the predicted depth of the existing resource boundary and provide the potential to model an expanded open-pit scenario.
Assays from the remaining two holes are highly anticipated and are expected over the coming weeks.
Shares in PNX are up 130% year to date, currently trading at $0.023.