PNX Metals Ltd (ASX:PNX) is seeing more gold potential at its Fountain Head Project in the Northern Territory thanks to a resource upgrade at the Glencoe deposit.
The gold and base metals stock updated Glencoe’s resource to 2.1 million tonnes at 1.2 g/t gold for 79,000 ounces, with 77.4% of that in the higher confidence measured and indicated categories.
Together with Fountain Head, PNX’s gold prospects are reported to contain 5 million tonnes of ore, grading 1.46 g/t for 235,000 gold ounces.
But there’s not just gold to consider here: the nearby Mt Bonnie and Iron Blow prospects — together forming the Hayes Creek Project — present a polymetallic opportunity.
Together, they host a combined 4.1-million-tonne resource, grading 1.81 g/t gold, 124 g/t silver, 4.35% zinc, 0.91% lead and 0.25% copper for 237,700 gold ounces, 16.2 million silver ounces, 177,000 tonnes of zinc, 37,000 tonnes of lead and 10,000 tonnes of copper.
Altogether, PNX’s Northern Territory portfolio is shaping up with a combined mineral resource estimate (MRE) of 472,700 gold ounces, 16.2 million silver ounces, 177,000 tonnes of zinc, 37,000 tonnes of lead and 10,000 tonnes of copper.
Developing more robust resource
PNX managing director James Fox said the updated mineral resource at Glencoe would advance the company’s NT gold and base metals development strategy.
“A significant improvement in the geological classification, with the majority now reporting to the high confidence measured and indicated categories, and an improved geological model has resulted in a more robust mineral resource,” Fox explained.
“[It’s also] highlighted numerous open areas to be drill tested, all with potential to considerably expand the mineralised footprint.
“A government co-funded drone-magnetic survey was recently completed over the Glencoe and Fountain Head gold deposits, and the Mt Bonnie and Iron Blow zinc-gold-silver deposits.
“The data is currently being processed and will be used to further refine new target areas for drill testing.”
What’s the opportunity here?
PNX considers Glencoe a critical part of its integrated gold, silver and zinc development strategy, which is proposing to mine and process ore from four 100%-owned deposits.
These include Fountain Head and Glencoe, both of which are prospective for gold, and the zinc-gold-silver Mt Bonnie and Iron Blow deposits, located on granted mining licences in the NT’s Pine Creek region.
All four deposits host their own mineral resources, and last year, PNX released a pre-feasibility study detailing how they could each be developed.
The company is also updating the project’s capital and operating costs with its engineering partner using a simplified flowsheet.
This is expected to partly offset the cost inflation experienced during construction and will be used to update the project’s financial model as PNX continues to engage with prospective financiers.
Honing in on Glencoe
PNX’s Glencoe update was underpinned by 4,470 metres of reverse circulation (RC) and 220 metres of diamond drilling over 2021 and 2022. Data from some 443 drill holes feed into the study.
Drilling mainly focused on the historical North-Central trial pit, where the measured resources are now outlined, and traced these gold lodes to the east for around 400 metres.
Independent mining consultant Measured Group conducted the update, which aligns with the JORC 2012 code.
The full Glencoe mineral resource stands at:
What now?
PNX plans to hit the soil once more with a new program in the dry season, designed to seek out possible extensions to Glencoe’s mineralisation.
On the paperwork front, an updated mine management plan has been submitted for government approval.
In the meantime, a new generation of targets is cropping up at Glencoe. In this next phase of work, PNX will focus on:
- extending the gold lodes in the West trial pit by following the Glencoe Anticline to the west with the aim of linking currently discontinuous gold zones;
- working to connect the West and NorthCentral trial pits;
- testing for easterly extensions to the MidCentral lodes to the same extent as already demonstrated for the North-Central lodes;
- testing for extensions of the SouthCentral lodes; and
- testing the northern limb of the Glencoe anticline.
Moving ahead, Measured Group also recommends:
- continuing to refine the geological model and stratigraphic column at Glencoe;
- testing geological models using independent datasets;
- using downhole wireline logging to expand the distribution of density measurements and collect structural data in RC drill holes; and
- conducting surface or shallow exploration beyond the current mineral resource expansion targets detailed above.
Bottom line, PNX believes the extent of historical surface exploration at Glencoe has been limited and should be expanded to identify any more nearby gold mineralisation.