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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An additional 3,000 metres of RC drilling has been completed in 2020 to support metallurgical test work, increase resource confidence and for mine development planning.
Drilling is ongoing to increase geological confidence in the Fountain Head gold resource, extend the known mineralisation and identify new areas with the potential to augment the current resource.
Medea Natural Resources will assist with negotiating, structuring and arranging financing for the NT project.
A new 8,000 metre RC and diamond drilling program has begun to support metallurgical test work, increase resource confidence and mine development planning.
Results confirm high-grade continuity at depth and along strike adjacent to the current resource envelope.
The company holds a significant base and precious metals tenement portfolio, primarily in the Northern Territory as well as in South Australia.
A geotechnical study for a 1 million tonnes per annum heap leach facility has been scoped and detailed planning is progressing for further drilling centred on start-up mining at Fountain Head West.
The board and management remain confident that continued exploration work will be successful in growing the resource base.
Drilling will be searching for a much larger and previously overlooked near-surface gold system.
Potential for future growth in resource remains through further drilling along strike.
Shares hit an intra-day high this morning of 1.4 cents, nearly triple yesterday’s closing price of 0.5 cents.
The funding will see the company through a transformative period over the next 12 months as it progresses its Hayes Creek project to a low-cost, high-margin zinc and precious metal mine.
The company recently identified a new process to increase gold and silver recoveries from its Hayes Creek Zinc-Gold-Silver Project.
Substantial holder Delphi’s shareholding in PNX will increase to about 40.6% on an undiluted basis.
The company has already secured commitments and underwriting for the full amount.
Major shareholder DELPHI will underwrite the offer while eligible shareholders can participate through a sub-underwriting.
Assays from drilling at Iron Blow are expected later this month and the DFS at Hayes Creek has re-started with the expectation that it will increase confidence in the project.
Optimisation work has potential to recover about 13,000 ounces of gold and 1 million ounces of silver that would otherwise end up in tailings.
Studies are underway to inform the Hayes Creek DFS including those required for government and environmental approvals.
The Northern Territory is PNX’s focus as exploration efforts move indoors during the wet season.
