PNX Metals (ASX:PNX) has intersected rich zinc-gold-silver-lead mineralisation in its first drill program at the Moline exploration project in the Pine Creek region of the Northern Territory.
Intersections included 2 metres at 4.66 g/t gold, 177 g/t silver, 4.92% zinc and 4.41% lead from 89 metres. A broad 30 metre gold and zinc zone was also intersected near surface.
A total of 12 reverse circulation holes were completed for 1,497 metres.
Further analysis and modelling of the data will proceed before a follow-up drill program is planned for the 2017 dry season.
James Fox, managing director, commented: “We are very pleased to have completed our first exploration drill program at Moline with immediate success in identifying new high-grade gold and base metals mineralisation.
“Three highly prospective areas were drill-tested, all exhibiting near-surface ore-grade mineralisation at potential mineable widths.”
Moline drill results
A total of 12 reverse circulation holes were completed for 1,497 metres during November.
The Moline project comprised four key prospects: Moline, School, Tumbling Dice and Hercules.
Assays from the final 10 holes were received with highlights including:
- 2 metres at 4.66 g/t gold, 177 g/t silver, 4.92% zinc and 4.41% lead from 89 metres;
- 11 metres at 1.41 g/t gold, 0.45% zinc from 118 metres;
- 9 metres at 2.57 g/t gold from 92 metres; and
- 30 metres at 2.29 g/t gold and 0.70% zinc from 78 metres including 3 metres at 6.58% gold.
Five holes were drilled at the Moline prospect within the Moline project, which produced the majority of mineralised intersections.
The 30 metre broad intersection was drilled at the Tumbling Dice prospect located 1 kilometre from the historic Moline open-pit.
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.
First stage farm-in at Moline complete
PNX recently completed the first stage of its farm-in agreement gaining a 51% interest in 1,700 square kilometres of land in the Pine Creek region of the Northern Territory.
The agreement with Newmarket Gold encompasses the Burnside, Moline and Chessman projects and excludes their uranium rights.
PNX has now elected to proceed to the second stage of the farm-in whereby it can increase its interest in the 19 exploration licences and 4 mineral leases to 90% through $2 million expenditure by 15 December 2018.
Analysis
The final 10 holes of the initial 12 hole drilling program at the Moline exploration project has been successful in showing the project’s prospectivity.
Drilling has highlighted the potential for Moline to host mineralisation similar to PNX’s flagship Hayes Creek project, which is located 65 kilometres away.
The program was designed to test three mineralised structures that were partly mined for oxide gold in the early 1990s and results have exhibited near-surface gold as well as added potential for base metal mineralisation at depth.
The follow up program in 2017 will be highly anticipated as the company looks to explore the extent of the mineralisation which remains open in many directions.
The Moline project is easily accessible located 1.5 kilometres from the Kakadu highway and lies on granted mineral leases.
Gold has been mined at Moline up until the early 1990s when it ceased abruptly due to equipment failure. This was prior to depletion of mining inventory and prior to evaluation of resource potential at depth.
Shares in PNX are up 140% year to date, currently trading at $0.024.