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 raising proceeds will be used to accelerate activities at the 100%-owned Fountain Head and Hayes Creek projects, including feasibility work and government and environmental approvals submission.
Proceeds from the fundraising initiatives will be used to accelerate activities at the 100%-owned Fountain Head and Hayes Creek projects, including feasibility work and government and environmental approvals submission.
The company’s recent field assessment of priority gold exploration targets identified during a recent comprehensive assessment of PNX’s NT exploration tenure has returned high-grade gold in rock chip samples taken from surface outcrop.
The acquisition represents the first of many opportunities the company has identified with the potential to add to its existing gold resource base and generate additional flexibility in its development strategy.
PNX is raising funds to advance its exploration and development strategy focused on gold and zinc-gold-silver projects in the Northern Territory.
It has received firm commitments for a placement to investors, including substantial shareholder Delphi Unternehmensberatung AG, of 378,333,333 fully-paid ordinary shares at an issue price of 0.6 cents per share.
The company is planning to undertake a high-resolution aeromagnetic survey over the Fountain Head area to assist in locating follow-up drill holes.
The high-grade Tally Ho lode, part of the Fountain Head mineral resource, lies within an interpreted N/NW trending structural zone that crosscuts the main Fountain Head anticline.
Significant upside at the Fountain Head gold and Hayes Creek zinc-gold-silver Projects has prompted PNX to revert to sole ownership and full control over future development.
The four areas identified for immediate follow-up reinforce the belief that Burnside Project has the potential to support a long-life gold mining operation.
The company is now finalising the EIS and incorporating updates related to the proposed carbon-in-leach process route, and tailings and water management.
Silver has been turning heads in recent months and there are signs of a sustained near-term uptrend that could extend for some time.
The company is working towards formalising the recently announced $40 million joint venture proposal for the development of processing infrastructure at the Fountain Head Project.
The proposed investment will cover the anticipated capital required for development of gold processing infrastructure and related costs necessary to fast-track the project.
The Fountain Head and Tally Ho mineral resources are adjacent to each other on granted mineral leases 100%-owned by PNX.
An updated mineral resource estimate for Fountain Head is due shortly, which will inform pit optimisations and proposed mining schedules.
Remaining drill assays are pending with an updated mineral resource due in May 2020.
The company has funding in place to advance feasibility studies for the Fountain Head Gold Project.
The company will use the funds raised to advance feasibility studies and approvals for a heap leach operation.
The Ladder-Vein West sits between the Fountain Head and Tally Ho lodes and could support early mining and an increase in gold resources.
