PNX Metals Ltd (ASX:PNX) has intersected new zones of near-surface high-grade gold mineralisation at the Glencoe deposit, 170 kilometres south of Darwin and 3 kilometres north of the Fountain Head Gold Project in the Northern Territory’s Pine Creek region.
Highlights from the latest reverse circulation drilling include:
- 8 metres at 1.69 g/t gold from 65 metres;
- 9 metres at 2.23 g/t from 21 metres; and
- 3 metres at 5.37 g/t from 31 metres.
The strike extent of the mineralisation remains open and extends to the southeast by over 200 metres, and mineralisation appears to be thickening towards the southeast, where sampling of outcrop has taken place with results pending.
Glencoe grows and grows
PNX managing director James Fox said the latest results continued to grow the gold potential beyond the company’s initial expectations.
“We are very pleased by the results of our first drill program at Glencoe,” he said.
“Several high-grade, near-surface intersections were returned and the strike length has been extended beyond the current mineral resource estimate. The deposit scale has been increased with this drilling.
“Further drilling will be conducted at Glencoe over the coming months as we look to upgrade the confidence level for a portion of the current deposit to the indicated category.
“Glencoe forms an important part of our development plans for the Fountain Head gold and Hayes Creek gold-silver zinc projects.”
Building on existing resource
PNX announced in April the maiden mineral resource estimate for Glencoe, expanding the scope of Fountain Head.
The resource estimate is 2.1 million tonnes at 1.2 g/t gold for 79,000 ounces in the inferred category.
It extends from surface to 120 metres vertical depth, comprises a number of discrete lodes over a strike length of greater than 1.5 kilometres and remains open in all directions.
A pre-feasibility study supported long-term gold, silver, zinc project development at Fountain Head.
Glencoe deposit represents a ‘bolt on’ asset that is expected to expand the proposed Fountain Head development, with gold resources between the two totalling 235,000 ounces with Fountain Head hosting 2.94 million tonnes at 1.7 g/t for 156,000 ounces.
Next steps
A drilling program of 2,000 metres will follow up the successful initial program at Glencoe in October, aiming to extend the new gold zones, target additional untested anomalies evident from historic exploration and recent surface sampling and collect further data around the current resource to upgrade the confidence level to the indicated category for at least a portion of the deposit.
Downhole optical imaging and density measurements will be completed on around 16 of the recently drilled holes, to assist with the structural interpretation of the gold lodes, improve the overall geological model of the deposit and provide further rock density data necessary to upgrade resource confidence.
Three diamond drill holes for about 360 metres are also planned as part of the program commencing in October, focused on the oxide and transitional zones of the deposit.
- Daniel Paproth