Company
ASX:PNX
PNX Metals Ltd (ASX:PNX) has a large tenement portfolio containing a mix of gold, silver and zinc assets in the Pine Creek region of the Northern Territory. Total contained gold in PNX’s projects to date is close to 400,000 ounces. The advanced Fountain Head Project hosts a mineral resource of 2.94 million tonnes at 1.7 g/t gold for 156,000 ounces of gold.
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“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 crus
RC drilling is ongoing to test further extensions and increase confidence in the mineral resource estimate.
The company’s drill program is expected to take up to six weeks to complete, with assays due from the end of November 2021.
The study envisages initial gold mining and processing at Fountain Head (Years 1 to 5) to be followed by gold-silver-zinc development at Hayes Creek (from Year 4).
A further 2,000 metres of reverse circulation drilling is planned to begin next month to test the eastern extensions and to upgrade a portion of the existing Glencoe mineral resource estimate to the indicated category.
The latest intersections increase the footprint and potential scale of the Glencoe deposit, just 3 kilometres north of its flagship Fountain Head Gold Project.
The gold explorer’s latest exploration campaign has highlighted new areas of open mineralisation on the margins of the deposit and outside the current mineral resource envelope.
About one-third of the program is designed to test for extensions where near-surface gold anomalism highlights along-strike potential with the remainder for resource infill purposes.
PNX is working with Como Engineers to deliver a design and proposal of the gold plant for a fixed-duration, lump-sum price, thereby removing a large portion of the project risk from PNX.
The company will test new near-surface targets with the potential to host high-grade gold mineralisation beyond the current mineral resource envelope.
The company believes that the appointments of Frank Bierlein and Richard Willson as non-executive directors will ensure board skills are aligned with the strategic direction of the company.
The pre-feasibility study is based on a decade-long life of mine, with nearly half of the multi-commodity project revenue thought to be delivered via gold production.
It will continue progressing the assessment and approval process over the next few months with regulatory approval for the Project targeted for the second half of 2021.
The recent Glencoe acquisition increases the global mineral resource of the Fountain Head Gold Project where the company is targeting first production in 2022.
“The approval of the company’s MMP to enable dewatering of the Fountain Head pit is an important milestone in the development of the project,” says MD.
Craig Wilson has worked in Africa, central and Western Australia in copper, uranium, coal, iron ore and numerous open-cut and underground gold mines and will take a leading role in transitioning the Fountain Head gold and Hayes Creek zinc-g
It has also finalised the sale and purchase agreement to acquire the Glencoe Gold Deposit, a ‘bolt on’ asset that has the potential to expand the Fountain Head gold development.
Government approvals for drilling at Fountain Head have been received and the company looks forward to kicking off a busy and productive program of work in late February.
Major shareholder German-based Delphi increased its holding in the company to 46.97% with a series of investments during 2020.
The German-based mineral resources sector investor has lifted its stake to 46.97% following participation in PNX’s recent rights issue and placement.
