PNX Metals Ltd (ASX:PNX) has commenced diamond drilling to follow up high-grade gold mineralisation at its Banner prospect within its Fountain Head Project in the Northern Territory.
The new phase of drilling follows the recent discovery of high-grade gold including 6 metres at 39.5 g/t gold from 54 metres depth.
High-grade gold has been drilled at three nearby prospects within the project suggesting it hosts one whole sizeable gold system.
READ: PNX Metals makes new discovery at Fountain Head with 6 metres at 39.5 g/t gold from 54 metres
PNX’s managing director James Fox said: “Excellent ongoing results increase our confidence that the Fountain Head gold system is much larger than previously thought.
“A significant body of mineralisation exists in this area, and if gold grades in mineralisation identified in the two diamond holes drilled reflect those of historic drilling, then the size and scale of the deposit will likely increase significantly.
Funding in place to drill as necessary
“Our recently completed, and strongly supported capital raise has given us the flexibility to increase the scope of drilling here to rapidly advance this opportunity, and we look forward to receiving more assays shortly.
“The aim of drill programs currently underway at Fountain Head and at Moline in particular, is to identify additional resources that can be incorporated into the Hayes Creek project in order to augment the economics and extend the mine life of the project.”
Notably, a larger drill program to delineate Banner mineralisation is expected to commence in October.
Assays from Tally Ho drilling due early October
Two diamond tails have also been completed to test the down-plunge potential of the Tally Ho gold lode with visible mineralisation extending the strike and depth extent by at least 100 metres.
The first diamond hole at Tally intersected a sulphide-rich quartz vein system over 20 metres and the second hole intersected similar visual indications of mineralisation.
Assay results are due from early October.