With the completion of the $1.4 million second tranche of shares, PNX now has $2.8 million of cash putting it in a strong financial position to continue its ongoing drill programs in the Northern Territory.
Drilling to date has already produced 6 metres at 39.5 g/t gold from 54 metres at the Banner prospect and grades of up to 29.3 g/t gold at the Fountain Head lode.
The recent positive assay results from the Fountain Head, Tally Ho and Banner prospects within the Fountain Head Project highlight the potential for this area to host a sizeable gold system.
PNX believes that the three prospects could all be part of the same gold system.
Furthermore, exploration success at Fountain Head can positively affect project economics at a future Hayes Creek mining operation, where studies are underway.
Fountain Head close to Hayes Creek Project
Notably, the Fountain Head mineral leases are located less than 15 kilometres from PNX’s flagship Hayes Creek zinc-gold-silver project.
As well as Fountain Head's exploration potential, the mineral leases provide the preferred site for the proposed Hayes Creek processing plant.
Drilling updates expected in coming weeks
PNX will update the market on progress with its ongoing drill campaign over the coming weeks.
This includes 300 metres of diamond drilling at the Moline project area, and commencement of a 2,000- metre reverse circulation (RC) and diamond drill program at Fountain Head.
Results regarding the interpretation of airborne geophysics survey and targeting for co-funded drilling at the Kilfoyle farm-in project are also expected.