Assays feature grades of 15.5 metres at 16.8% zinc equivalent from 64.1 metres depth.
19 holes have been reported to date, which are part of the 30-hole infill and extensional drill program.
The mineralisation intersected occurs largely as predicted by the geological model.
Previously considered an underground deposit, the excellent near-surface zinc, gold and silver mineralisation intersected introduces the potential for an initial open-pit.
The remaining assays are due shortly with a resource upgrade expected in late March 2017.
James Fox, managing director, commented: “These recent results are significant, not just due to their excellent metals grades but that potentially mineable widths of mineralisation have been delineated at vertical depths of less than 40 metres below surface.”
Drill result details
All nine holes intersected massive and disseminated sulphide mineralisation within two main zones; an eastern hanging-wall lode defined by its significant zinc-gold-silver mineralisation, and underneath, a broader western footwall lode.
- 11 metres at 7.4% zinc equivalent (0.84% zinc, 0.63 g/t gold, 332.4 g/t silver, 1.31% lead, 0.14% copper) from 24 metres;
- 24.16 metres at 6.7% zinc equivalent (4.68% zinc, 1.57 g/t gold, 74.7 g/t silver, 0.70% lead, 0.09% copper) from 115.7 metres in the eastern lode;
- 7.8 metres at 9.1% zinc equivalent (6.02% zinc, 1.47 g/t gold, 131 g/t silver, 0.76% lead, 0.38% copper) from 171.5 metres in the western lode; and
- 12 metres at 13.6% zinc equivalent (8.94% zinc, 2.46 g/t gold, 209 g/t silver, 1.03% lead, 0.32% copper) from 40 metres.
The remaining holes reported were drilled over various sections of the deposit and continue to intercept mineralisation as predicted by the geological model, demonstrating good grade continuity and a good understanding of the geological controls.
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.
Drilling continues to discover strong zones of zinc-gold-silver rich mineralisation and extensions to near surface mineralisation which bodes well for the pending resource upgrade for the Iron Blow deposit.
This will follow the recently upgraded resource at Mt Bonnie, which will allow for completion of the Hayes Creek pre-feasibility study by mid-2017.
Previous mining studies envisaged 100% underground mining; this new data may allow PNX to incorporate lower cost open-pit mining methods in the mining optimisation studies.
Shares in PNX have more than doubled over the past 12 months, currently trading at $0.023.
PNX remains leveraged to further exploration based news flow with assays from the remaining holes expected shortly.