PNX Metals Ltd (ASX: PNX) has received high-grade gold from drill assays on the Fountain Head gold development, part of the Hayes Creek Project in the Northern Territory.
RC drilling has identified numerous zones of mineralisation returning grades above the anticipated 0.5 g/t mining cut-off grade, including:
- 14 metres at 9.22 g/t from 17 metres including 2 metres at 48.58 g/t from 19 metres;
- 2 metres at 12.69 g/t from 12 metres;
- 2 metres at 24.03 g/t from 66 metres; and
- 10 metres at 2.55 g/t from 70 metres, and 4 metres at 7.87 g/t from 89 metres, and 6 metres at 3.35 g/t from 128 metres.
PNX managing director James Fox said: “Drilling at Fountain Head continues to intersect high-grade near-surface gold mineralisation that supports and enhances our geological and mineral resource model.”
All RC drilling is now completed with the remaining assays due from end of March.
Ladder-Vein west potential
New zones of broad, high-grade gold mineralisation have been intersected near-surface in the area between the Fountain Head and Tally Ho mineral lodes over a strike extent of around 100 metres.
In this area, historically known as ‘Ladder-Vein west’, material previously classified as waste or low-grade ore is being assessed as hosting grades that will potentially support early mining and an increase in gold resources.
Fox said: “The potential for the saddle between the two main lodes to host sufficient mineralisation to classify as ore would have favourable impacts on the strip ratio, as well as additional contained gold.
“Combined with favourable movements in the gold price, these new high-grade areas being delineated within the proposed pit shell have the potential to significantly increase the project value.”
Ongoing work includes diamond drilling
The company has a range of geotechnical, metallurgical and permitting work underway at the project.
Diamond drilling as part of a geotechnical study are ongoing and will assist with open-pit design and confirm historic interpretation.
The geotechnical study is due to be completed in March.
Selected RC intersections from 2019 drilling have been sent for screen fire analysis with these results due from the end of March and once all assays have been received, assessed and reported, an update to the Fountain Head mineral resource will be completed in April.
The company met with the Department of Primary Industry and Resources and the Northern Territory Environmental Protection Authority (NT EPA) in late February to present the project and plans were well received and no significant issues affect the proposed project timeline arose.
Fox said: “We look forward to proving the viability of the project over the coming months to target development from the end of 2020.”
Long term strategy of regional processing hub
The company is currently assessing the feasibility of a heap leach operation as a low-cost, scalable option for generating early cash flow from existing gold resources - whilst preserving the Hayes Creek zinc-gold-silver mineral resources for development at a future point in time.
PNX has accelerated studies and the approvals process for the development of a gold heap leach operation at Fountain Head which may also lead to the development of other gold deposits in the region, many of which lie within PNX’s project areas and are considered ‘stranded’ due to their modest grades and distance from existing processing infrastructure.
The company’s longer-term aim is to evolve Fountain Head into a regional processing hub capable of monetising a pipeline of gold and base metals assets.