PNX Metals Ltd (ASX:PNX) has received screen fire assays from diamond dhole FHDD181 within the Fountain Head Gold Project in the Northern Territory where visible gold was identified between 145 metres and 181 metres.
Several intervals of elevated gold were noted including 5.75 metres at 1.74 g/t gold from 158.5 metres and 0.3 metres at 14.28 g/t gold from 172.25 metres.
Identification of this zone of mineralisation suggests a thickening and extension of the Tally Ho lode which remains open down-dip.
Results show “a thickening and extension” of Tally Ho
Managing director James Fox said: “Working with Bridge Creek Mining and Halifax Capital to assist with fast tracking the project development we look forward to continuing to extend and optimise the proposed open-pit to maximise future profits.
“The assay results reported in this release show a thickening and extension of the Tally Ho lode down dip and below the limit of the known mineralisation, remaining open to further potential extensions.”
The company is working towards formalising the recently announced $40 million joint venture (JV) proposal for the development of processing infrastructure at the Fountain Head Project.
This proposal includes:
- A capital investment of A$40 million by Halifax Capital through Bridge Creek Mining (BCM) to fund the acquisition, construction and commissioning of a fit-for-purpose gold Carbon-in-Leach processing plant and associated Project Infrastructure to be located at Fountain Head to facilitate profitable treatment of certain PNX (including FH) and BCM gold mineral resources; and
- An unincorporated JV between PNX and BCM to mine and process those mineral resources through the Project Infrastructure and to share 50/50 the gold produced with agreed direct operating costs to be paid by PNX and BCM in the same proportion.
It also supports PNX’s strategy to rapidly monetise and generate early cash flow from the gold resources at Fountain Head and may also provide an opportunity to enhance overall Hayes Creek zinc-gold-silver Project economics.