PNX Metals Ltd (ASX:PNX) first mineral resource estimate for the newly acquired Glencoe Deposit has enhanced development plans for the Fountain Head Gold Project in the Northern Territory.
The resource estimate for Glencoe, which is just 3 kilometres north of the 100%-owned Fountain Head Project, is 2.1 million tonnes at 1.2 g/t gold for 79,000 ounces in the inferred category.
This resource, which remains open in all directions, extends from surface to 120 metres vertical depth and comprises discrete lodes over a strike length of around 1.5 kilometres.
Notably, the acquisition of the deposit represents a ‘bolt on’ asset that is expected to expand the proposed Fountain Head development.
Gold resources between Fountain Head and Glencoe now total 235,000 ounces with the former hosting 2.94 million tonnes at 1.7 g/t gold for 156,000 ounces of gold.
“Key component of strategy”
PNX managing director James Fox said: “The new mineral resource at Glencoe is a key component of PNX’s NT gold development strategy and along with the Fountain Head gold and Hayes Creek gold/silver oxide mineral resources, enhances the proposed Fountain Head development and the goal of first gold production in mid-2022.
“Important to note is that Glencoe remains open in all directions and drilling is planned to test potential along-strike extensions to the deposit at the end of the current wet season (in the June 2021 quarter).
“The company is finalising its Environmental Impact Statement and Fountain Head gold and Hayes Creek zinc-gold-silver project feasibility with both due for completion during May 2021.”
Location map of the Glencoe and Fountain Head Gold Development
Opportunity to enhance economics
The company is finalising its assessment of low-risk and scalable processing infrastructure to rapidly monetise and generate early cashflow from gold resources at Fountain Head, Glencoe and the Mt Bonnie gold/silver oxides (part of Hayes Creek).
This strategy may also provide an opportunity to enhance the economics of the overall Hayes Creek zinc-gold-silver project by extending the project mine life with a future mined-out Fountain Head pit available to store tailings from sulphide flotation of ore.
Environmental Impact statement
Having recently received approval for its mine management plan to dewater the Fountain Head pit, the company is working with its consultants to submit the Environmental Impact Statement in May this year.
Both of these documents are critical path items for the project.
Como Engineers has also been engaged to provide guidance and input into the process plant design with the project feasibility also due for completion in May.
Next steps
Follow-up drilling along strike from Glencoe to test for potential extensions to the deposit is scheduled to begin at the end of the current NT wet season (in the June 2021 quarter) with a drilling contract in place and government approvals underway.