PNX Metals Ltd (ASX:PNX) has relieved itself from all rehabilitation obligations after completing the sale of Leigh Creek Copper Mine Pty Ltd (LCCM).
The sale includes LCCM, which owns three mining leases and also an additional two exploration licences nearby.
Operations at Leigh Creek have been on care and maintenance since January 2012.
PNX is to receive a $100,000 payment if and when 3,000 tonnes of copper are produced from future operations on the mining leases by the buyer, Resilience Mining Australia Ltd.
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.
Drilling update
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 initial drill program is targeting near-surface open mineralisation and provides the opportunity, with minimal drilling, to define mineral resources.
Drilling is expected to finish within the week.
Within 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.