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PNX Metals begins drilling to test for Glencoe gold extensions in NT

Published: 02:06 16 Jul 2021 BST

PNX Metals Ltd - PNX Metals begins drilling to test for Glencoe gold extensions in NT
This will be PNX’s first drill program at Glencoe since acquiring the project.

PNX Metals Ltd (ASX:PNX) has begun a reverse circulation (RC) drilling program of up to 2,000 metres at Glencoe gold deposit within the Pine Creek region of the Northern Territory.

About one-third of the drill program is designed to test for immediate extensions where near-surface gold anomalism highlights along-strike potential.

The remainder will be drilled within the boundary of the mineral resource and is aimed at increasing geological confidence.

PNX Metals’ Glencoe deposit is on a granted Mineral Lease about 170 kilometres south of Darwin and 3 kilometres north of the company’s Fountain Head Gold Project.

“A key component”

PNX managing director James Fox said: “Glencoe is a key component of PNX’s NT gold development strategy.

“The current Glencoe mineral resource remains open in all directions and with further drilling success, has the potential to significantly enhance project economics at the company’s proposed Fountain Head Gold development.”

To improve geological confidence

This will be PNX’s first drill program at Glencoe since acquiring the project.

The company has released a mineral resource estimate, based on previous drilling, of 2.1 million tonnes at 1.2 g/t gold for 79,000 ounces of gold in the inferred category.

This resource remains open in all directions, extends from surface to 120 metres vertical depth and comprises several discrete lodes over a strike length of greater than 1.5 kilometres.

PNX’s current drill program is expected to improve geological confidence by testing the geological model and adding quality assurance (QA) and quality control (QC) information for any future resource updates.

The drill program is to take about four weeks to complete with assays due from mid-August.

Multi-commodity development

PNX recently finalised an assessment of the technical and economic parameters to sequentially develop the Fountain Head Gold Project, which includes Glencoe, and the Hayes Creek Gold-Silver-Zinc Project.

The assessment highlights a robust, multi-commodity development with a forecast unleveraged pre-tax NPV8% of $171 million and a mine life of 10 years with undiscounted revenues of $972 million over the mine life.

An environmental impact statement for Fountain Head was submitted in early June and is more than halfway through its public consultation period, which finishes August 8, 2021. PNX expects feedback by early September.

RC drilling was recently completed at Fountain Head, where four ‘near-mine’ exploration targets were tested.

Final assay results and subsequent geological interpretation have been delayed due to the recent Darwin COVID-19 lockdown, and are expected to be completed by the end of July.

- Ephrems Joseph

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