The company’s aim is to delineate high-value, highly profitable gold or base metals deposits which can be treated through the process plant proposed for the Hayes Creek project or through existing free-gold milling infrastructure.
21 reverse circulation holes are planned to commence early July at the Moline project where PNX is aiming to extend gold and base metals sulphide mineralisation identified in 2016.
PNX also plans to drill 15 reverse circulation holes in late July, subject to approvals, at the Cookies Corner gold prospect located within the Burnside Project.
James Fox, managing director, commented: “Drilling at the Moline project where we are aiming to extend the excellent gold and base metals sulphide mineralisation intersected in late 2016 and drilling at the new, large Cookies Corner gold anomaly has the potential, if successful, to create substantial value for PNX shareholders.”
Drilling at Moline will target the School, Moline, Tumbling Dice and Redback prospects.
At the School prospect PNX drilling intersected significant gold mineralisation only 50 metres below the historical pit:
- 9 metres at 2.66 g/t gold from 68 metres in the western lode; and
- 7 metres at 11.89 g/t gold from 115 metres in the eastern lode including 3 metres at 23.79 g/t gold.
At the Moline and Tumbling Dice prospects, PNX intersected zinc-gold-silver-lead rich sulphides which remain open down-dip and along strike, including:
- Moline: 2 metres at 4.66 g/t gold, 177 g/t silver, 4.92% zinc, and 4.41% lead from 89 metres; and
- Tumbling Dice: 30 metres at 2.29g/t gold and 0.70% zinc from 78 metres including 3 metres at 6.58 g/t gold.
The Cookies Corner gold prospect is a large 1 kilometre in length gold in soils anomaly located 40 kilometres north-west of Hayes Creek and forms part of the Burnside project.
Limited but encouraging historical exploration features 3 metres at 19.7 g/t gold from 3 metres depth and 29.3 g/t gold rock chip assays.
Hayes Creek aerial survey
During July, PNX will fly an airborne geophysical survey over the Hayes Creek project area, which will include the new Margaret volcanogenic massive sulphide (VMS) prospect.
The survey will assist with identifying extensions to existing mineralisation at the Mt Bonnie and Iron Blow deposits, and new targets with VMS potential.
The Margaret prospect is located less than 1 kilometre from Iron Blow and 3 kilometres from Mt Bonnie VMS deposits.
Fieldwork has defined a large, 1 kilometre in length lead-zinc-gold in soils anomaly.
Hayes Creek pre-feasibility study due shortly
The Mt Bonnie and Iron Blow zinc-gold-silver deposits form part of the Hayes Creek Project and are located less than 3 kilometres apart on granted mineral leases.
An updated JORC Resource was reported for Mt Bonnie in February 2017 and for Iron Blow in May 2017.
Collectively the Hayes Creek Project hosts a total Indicated (84.7%) and Inferred (15.3%) JORC Resources of 4.1 million tonnes containing 177,200 tonnes of zinc, 238,000 ounces of gold, 16.2 million ounces of silver, 37,000 tonnes of lead, and 10,050 tonnes of copper.
The PFS 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 Hayes Creek Project is located in a favourable mining jurisdiction in the Pine Creek region of Northern Territory, less than two hours by road from Darwin.
The development strategy includes the use of existing infrastructure, designed to boost project economics and reduce project risk.