PNX Metals Ltd (ASX:PNX) is using modern drilling technology to test for mineralisation in a historic gold region.
The company has commenced a 16 hole reverse circulation drill program at the Moline Exploration Project, where three known gold mineralised structures will be drilled.
This will target high-grade gold shoots with the potential for associated base metal sulphides.
Drilling will take around two weeks.
Moline is located 65 kilometres to the east of the company's Hayes Creek gold-silver-zinc project in the Pine Creek region of the Northern Territory.
James Fox, managing director, commented:
"The area hosts non-JORC historical gold resources and we have identified the potential for new gold and base metals mineralisation across three different structures.
"This initial drill program will target near-surface open mineralisation and provides the opportunity, with minimal drilling, potentially to define mineral
resources to JORC 2012 standards.
"A successful drill program has the potential to create significant value either as a standalone project or as one complementary to the Hayes Creek gold-silver-zinc project where PNX is due to complete a PFS by May 2017."
Historic gold
At Moline, gold had been mined periodically up until the early 1990's.
This was prior to depletion of mining inventory, and prior to evaluation of resource potential at depth.
Since then there has been no mining and very little exploration activity, however historical information and an airborne EM survey flown in 2011 suggests significant near-surface mineralisation still exists beneath and along strike from existing historical workings.
Funds
Expenditure at Moline will contribute toward the completion of the Stage 1 exploration earn-in with Newmarket Gold NT Holdings Pty Ltd where PNX is earning up to 90%.
Update from Hayes Creek
Infill diamond drilling at Iron Blow is proceeding well with drilling intercepting massive sulphide mineralisation as predicted in the geological model.
Four diamond holes have been completed with assay results from the first infill diamond hole due shortly.
Drilling is expected to continue into December 2016.
Coming up are four new reverse circulation holes are planned at Mt Bonnie.