PNX Metals Ltd (ASX:PNX)’s latest round of reverse circulation drilling has highlighted new pockets of open mineralisation at its wholly-owned Fountain Head Gold Project in the Northern Territory.
The gold explorer set out to define near-surface mineralisation at the precious metals project with the potential to augment its existing mine plan.
Promisingly, the ASX-lister discovered multiple zones of potentially economic gold mineralisation, with follow-up work now scheduled to help identify more lode extensions.
Ultimately, the fresh drilling results point to mineralisation outside PNX’s existing mineral resource estimate (MRE), which stands at 2.94 million tonnes grading 1.7 g/t for 156,000 contained gold ounces.
Potential for economic mineralisation
PNX managing director James Fox said: “These drill results at the Fountain Head highlight the potential for economic gold mineralisation outside of the currently defined MRE.
“The company will continue to assess targeted exploration with a view to further enhance the existing mine-plan.
“The drill rig has now moved back to Glencoe to test for immediate extensions where near-surface gold anomalism highlights along-strike potential, and to increase geological confidence within the boundary of the existing MRE.
“In parallel, other project development activities are occurring with feedback expected by end of August 2021 from public consultation of the environmental impact statement (EIS), and ongoing engineering and design of the proposed gold plant and infrastructure.”
The results are in
Based on mapping and geological data, PNX believes gold mineralisation at Fountain Head primarily runs for 5 kilometres of strike along the Fountain Head Anticline fold hinge.
Two main mineral lodes have been identified at the project to date - the Fountain Head lode and the crosscutting Tally Ho lode - both of which remain open along strike and down dip and host the majority of the current resource.
However, limited sub-surface exploration has taken place outside of the main known mineralised zones and controls around gold mineralisation are not well understood in these peripheral areas.
As a result, its latest drilling campaign, PNX tested four ‘near-mine’ exploration targets at Fountain Head.
The gold explorer worked across the Northwest, Far East, Southeast and Lake zones to search for near-surface mineralisation.
The Northwest Breccia Zone, in particular, showed promise, with some of the best high-grade intersections returning:
- 3 metres at 8.54 g/t gold from 34 metres, including 1-metre at 23.72 g/t from 34 metres;
- 2 metres at 3.56 g/t from the surface;
- 3 metres at 4.13 g/t from 16 metres; and
- 3 metres at 1.83 g/t from 116 metres.
Similar grades were intersected across the Southeast, Far East and Lake Zones, which returned as much as 4.38 g/t, 3.98 g/t and 5.92 g/t, respectively.
Ultimately, the reverse circulation results nod to mineralisation pockets on the margin of the deposit and outside the current mineral resource envelope at Fountain Head.
Next steps
Since drilling at Fountain Head was completed, the reverse circulation rig was moved to the 100% PNX-owned Glencoe gold deposit, 3 kilometres to the north of Fountain Head.
Ten holes were drilled at the precious metals target, with assays pending.
In the meantime, further drill testing at Glencoe has been deferred for approximately two weeks to allow for maintenance, while drilling at third-party exploration targets and is expected to recommence imminently.
The Glencoe resource, comprising 2.1 million tonnes at 1.2 g/t gold for 79,000 ounces, remains open in all directions, extends from surface to 120 metres vertical depth and comprises a number of discrete lodes over a strike length of greater than 1.5 kilometres.
In addition, PNX recently finalised an assessment concerning the technical and economic parameters to sequentially develop the Fountain Head Gold Project and Hayes Creek Gold-Silver-Zinc Project.
In mid-June, the ASX-lister forecast such a development could hold an unleveraged pre-tax net present value of $171 million and run for a 10-year mine life, generating undiscounted revenues totalling $972 million.