The 30 hole infill and extensional drill program was designed to upgrade geological confidence at Iron Blow.
Highlights from the final assays include 7.5 metres at 19.1% zinc equivalent from 210.7 metres depth.
Results confirm the geological model and provide additional evidence that the deposit remains open at depth.
A resource upgrade is expected in April 2017, to be followed by pre-feasibility study results in mid-2017.
James Fox, managing director, commented: “The aim of the drill program was to provide sufficient geological information to upgrade the majority of the existing resource estimate to the, (higher confidence), Indicated category for inclusion in the Hayes Creek pre-feasibility study, whilst identifying opportunities for optimising the mine plan and future resource growth.”
Drill result details
The assay results continue to delineate two main massive sulphide zones; an eastern hanging-wall lode defined by its significant zinc-gold-silver mineralisation, and underneath, a broader western footwall lode.
Several other narrow gold-only zones have been identified, between the massive sulphide lodes and in the hanging wall.
- 7.5 metres at 19.1% zinc equivalent or 12.77% zinc, 1.89 g/t gold, 326 g/t silver, 2.82% lead and 0.35% copper from 210.7 metres;
- 29.5 metres at 4.3% zinc equivalent or 1.82% zinc, 2.41 g/t gold, 24.8 g/t silver, 0.13% lead and 0.28% copper from 247.9 metres; and
- 15.7 metres at 5.5% zinc equivalent or 5.04% zinc, 0.82 g/t gold, 19.2 g/t silver, 0.13% lead and 0.24% copper from 118.2 metres.
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.
The successful drilling program has delivered continuous results exhibiting zones of zinc-gold-silver rich mineralisation and extensions to near surface mineralisation.
Assays bode 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 but recent new data may allow PNX to incorporate lower cost open-pit mining methods in the mining optimisation studies.
PNX shares are up 65% over the past 12 months, currently trading at $0.02.