PNX Metals Ltd (ASX:PNX) has commenced a new phase of exploration at its Hayes Creek zinc-gold-silver project and its Moline Exploration Project in the Pine Creek region of the Northern Territory.
Following recent capital raisings totalling $3.2 million, PNX is well funded to accelerate its exploration activities in this under-explored region of the Northern Territory.
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James Fox, managing director, commented: “We are entering an exciting period with considerable activity scheduled to occur over the next few months.
The results of ground IP surveys over our new large zinc geochemical targets at Moline will allow for more accurate drilling of any conductors identified.“
“Historic zinc and gold production in the area provides further indication of the potential and we look forward to completing these surveys over the next few weeks.”
Geophysical surveys to refine drill targets at Moline
Induced Polarisation (IP) geophysical surveys have commenced over three new high priority zinc targets at the Moline Project located circa 65 kilometres to the east of Hayes Creek.
The 3 newly identified zinc prospects at Waterhole, Mango and Swan are defined by their strong geochemical signatures and the ground IP will be used to refine the targets prior to drill testing.
The IP surveys are expected to be completed by the end of October with modelling of the data and drilling of the highest priority targets anticipated to occur during November.
The expenditure incurred on this work will help PNX satisfy the second stage of the farm-in agreement with TSX-listed Kirkland Lake Gold (TSX:KL).
PNX can increase its interest in the tenements to 90% (excluding uranium) by spending $2 million by December 2018, with circa $1.25 million of that having been spent to date.
Drilling commences at Hayes Creek
PNX has commenced reverse circulation and diamond drilling programs at Hayes Creek to support the definitive feasibility study (DFS) and potentially extend the mine life.
The DFS is progressing well and is expected to be completed in 2018.
Importantly, the PFS forecasts annual production of 18,200 tonnes zinc, 14,700 ounces gold, and 1.4 million ounces silver (39,100 tonnes of zinc equivalent) over an initial mine life of 6.5 years.
Circa 4,000 metres of drilling in total is planned in the new program, which will be ongoing until the end of the year.