PNX Metals (ASX:PNX) continued drilling success is now converting into larger, higher confidence resources, at Hayes Creek in the Northern Territory.
The Mt Bonnie resource has been updated to: 1.55 million tonnes at 3.8% zinc, 1.34g/t gold, 127g/t silver, 1.1% lead and 0.2% copper.
The increase in metals is as follows: gold up by 28%, silver up by 15%, and zinc up by 7%. The resource tonnes increased by one-fifth.
Importantly, 90% of the resource has now been converted to the higher confidence Indicated category.
James Fox, managing director, commented:
"The close proximity of the project to essential services and infrastructure, and high zinc and gold equivalent grades make for a potentially low cost, high margin operation that features an attractive mix of readily extractable commodities for investors.
"We look forward to finalising the studies required for the PFS, which will feature new metallurgical data, and is on schedule and due for completion mid-2017."
The resource occurs near-surface from around 25 metres to 170 metres in depth.
Detailed open-pit mining studies are underway.
Analysis
The completion of this favourable resource upgrade at Mt Bonnie is another important achievement in the development of the Hayes Creek Project.
Next steps include detailed open-pit mining studies which are underway at Mt Bonnie, along with the finalisation of an updated resource for the larger Iron Blow deposit.
The Hayes Creek PFS remains on target to be completed by mid-2017, to incorporate updated resources for Mt Bonnie, Iron Blow and new metallurgical data.
PNX shares have more than doubled over the past 12-months as the company continues to deliver news flow and a clear corporate strategy.