PNX Metals Ltd (ASX:PNX) has received high-grade gold results from the maiden reverse circulation (RC) drilling program at its Fountain Head Gold Project in the Northern Territory.
Gold mineralisation defined at Fountain Head will complement the proposed development of the company’s nearby Hayes Creek Zinc-Silver-Gold project.
Drilling targeted near-surface gold mineralisation outside of the historic mining area at Fountain Head.
PNX managing director James Fox said the company was excited to have identified several areas where significant gold mineralisation extends beyond the limits of previous drilling and mining.
He said: “We look forward to completing the diamond drilling component of the program to test under the historic Fountain Head and Tally Ho open pits where there is potential for further significant economic gold mineralisation.
Capital raising announced
PNX was granted a trading halt by the ASX today pending an announcement by the company regarding a capital raising.
The halt will remain in place until the announcement is released or the commencement of trading on Wednesday, 25 July, 2018.
Gold results in seven of 11 holes
In the 31-hole RC program gold was returned in assays for seven of the first 11 holes.
Best results are: 3 metres at 11.09 g/t gold from 93 metres, including 1 metre at 29.30 g/t from 95 metres; and 1 metre at 28 g/t from 83 metres.
The 11.09 g/t result occurs beneath 3 metres at 13.80 g/t gold in historical drilling, which demonstrates the continuation of a high-grade ladder vein which remains open.
The Fountain Head tenement is less than 15 kilometres from the Hayes Creek Project
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The company is planning further diamond drilling test potential down-plunge extensions of the mineralisation directly under the historic open pits on the tenement.
These results highlight that the mineralised structures extend at least 300 metres outside of the historic mining area along the Fountain Head anticline.
“A much larger, previously overlooked gold system”
Fox said: “The Fountain Head lodes are interpreted to represent the near-surface expression of a much larger and previously overlooked gold system and we look forward to receiving further assay results to confirm this.”
Mineralisation remains open to the northwest and at depth, indicating the potential for further mineralised extensions over at least a 1 kilometre strike length.
PNX drilled 12 holes to test this concept, with those assays due in the coming weeks.
READ: PNX Metals commences gold drilling at Fountain Head
The Fountain Head mineral leases are less than 15 kilometres from PNX’s Hayes Creek Project and provide the ideal location for the proposed Hayes Creek process plant.
In addition to drilling at Fountain Head, PNX has identified a pipeline of additional prospects within its NT exploration tenure.
It is obtaining the required approvals to drill a further six gold and base metals exploration targets at the Burnside and Moline projects during 2018.
The aim of the proposed regional exploration program is to identify additional economic mineralisation with the potential to complement and enhance the Hayes Creek development project.