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PNX Metals hits more high-grade zinc at Iron Blow

Published: 09:30 23 Jan 2017 AEDT

NT---757
Drilling continues at the Iron Blow deposit located in the Northern Territory

PNX Metals (ASX:PNX) has received assays for 10 holes from the infill and extensional drilling program at the Iron Blow deposit within the Hayes Creek gold-silver-zinc deposit located in the Northern Territory.

Significant intersections included 11.1 metres at 32.8% zinc equivalent.

The results are part of a 30 holes program with the remaining assays due shortly and a resource upgrade expected in March.

James Fox, managing director, commented: “We are pleased to have identified a near surface extension to the western lode at Iron Blow.

“This is new mineralisation that extends to surface and lies outside of the existing Mineral Resource.

“The main massive sulphide mineralisation continues to report strong zinc, gold and silver grades.”


Drill result details

Excellent assay results continue at Iron Blow, significant intersections include:

- 33.6 metres at 12.1% zinc equivalent (6.28% zinc, 2.34 g/t gold, 246 g/t silver, 1.45% lead, 0.25% copper) from 180.0 metres including 11.13 metres at 32.8% zinc equivalent;
- 44.56 metres at 7.2% zinc equivalent (4.30% zinc, 2.07 g/t gold, 81 g/t silver, 0.43% lead, 0.35% copper) from 219.3 metres; and
- 11 metres at 7.4% zinc equivalent (0.60% zinc, 0.63g/t gold, 332g/t silver, 1.31% lead, 0.14% copper) from 24.0 metres.

These results have confirmed a near-surface extension of the western lode outside of the existing geological model.


Background

PNX’s focus is on its four projects located in the Pine Creek Region, 180 kilometres south of Darwin.

- Hayes Creek Project (flagship);
- Burnside Project;
- Moline Project; and
- Chessman Project.

The Hayes Creek project contains the Iron Blow and Mt Bonnie gold-silver-zinc deposits, located less than 3 kilometres apart and situated on granted mineral leases wholly owned by PNX.

The Hayes Creek pre-feasibility study is fully funded and due for completion by mid-2017.

It will expand on the scoping study completed in March 2016, which found that mining and processing ore derived from the proposed open-pit and underground operations at Hayes Creek would generate strong financial returns for PNX.


Analysis

Drilling continues to discover extensions to near surface mineralisation which bodes well for the resource upgrade expected in March for the Iron Blow deposit.

This will be alongside the upgraded resource, expected to be completed shortly at Mt Bonnie, which will allow for completion of the Hayes Creek pre-feasibility study by mid-2017.

Shares in PNX are up 150% over the past 12 months, currently trading at $0.025.

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