PNX Metals Ltd (ASX:PNX) has provided a comprehensive update on its Fountainhead Gold Project in the Pine Creek region of the Northern Territory.
Back in June, the company’s pre-feasibility study highlighted a technically and economically robust, multi-commodity development with a mine life of 10 years.
Since then, it has conducted a considerable volume of work on the project and revised its delivery timelines.
Approvals on track
Permitting and approvals are well advanced, with the project's Environmental Impact Statement (EIS) and supplement lodged with the Northern Territory EPA.
All development activities are on track for a final investment decision to occur once government and environmental approvals have been granted and project financing arranged, all of which are anticipated to kick off from the end of the first quarter, 2022.
A Mining Management Plan draft is near completion and is to be lodged with the NT Government early in 2022.
Capital cost mitigation
Capital cost estimates have been updated and the company has implemented measures to offset these costs and keep them in line with the PFS estimate of A$46 million.
These initiatives include using second-hand equipment, with suitable tailing filtration equipment identified and engineering assessment underway; modular plant design to reduce time and site-based construction costs; and moving the mobile crushing plant off the balance sheet and choosing it over fixed units to achieve greater flexibility and ease of financing.
Hybrid power to reduce costs and footprint
In other news, the stand-alone hybrid power station is highly feasible, and it can generate up to 41% renewable power to significantly reduce overall carbon footprint and unit operating costs.
Argonaut PCF has been appointed as debt advisor, and the parties aim to finalise project finance early in 2022.
“The PNX Project team along with its Engineers and Consultants have made significant progress on the Fountain Head Gold Project since the project PFS was released,” managing director James Fox said.
“Capital cost pressures related to the current economic climate have been in part mitigated and offset by use of second-and equipment, with suitable filtration equipment identified and engineering assessment underway, and use of mobile crushing units.”
“Approvals are well advanced with supplementary information now provided to the NT EPA. We are also excited to be partnering with Sunrise Energy Group to reduce the project carbon footprint by way of a hybrid power station.
"We look forward to completing project financing, approvals and making a final investment decision during the first half of 2022.”