Sign up Australia
Proactive Investors - Run By Investors For Investors

PNX Metals zinc-rich results likely to extend Hayes Creek resource

Extensions to mineralisation have the potential to improve project economics.
Trucks at Hayes Creek
The company aims to have the project ready for development in 2020

PNX Metals Ltd (ASX:PNX) has received high-grade zinc-rich results which have potential to extend the resource and increase mine life at Hayes Creek project in the Northern Territory.

Drilling at the Mt Bonnie deposit intersected zinc, gold and silver mineralisation in 15 holes outside the existing mineral resource envelope.

Mineralisation has been extended below the pit design and both up and down-dip to the existing resource.

READ: PNX Metals now debt free, Hayes Creek DFS due in 2018

Best result was 4 metres at 6.14% zinc, 1.14 g/t gold, 176 g/t silver, 1.29% lead and 0.11% copper from 73 metres, including 2 metres at 10.28% zinc, 1.92 g/t gold, 304 g/t silver, 2.11% lead and 0.17% copper.

James Fox, managing director, said: “Extensions to zinc-rich massive sulphide mineralisation below the existing pit design, and new mineralisation have potential to improve the already strong project economics.

“This would be possible by reducing the mine strip ratio, providing additional ore feed to the proposed process plant and therefore extending mine life.”

Results to be used in definitive feasibility study

In addition to resource extension drilling, the drilling was designed to provide geotechnical, resource, hydrological and metallurgical information for incorporation in the definitive feasibility study (DFS).

The study is due to be completed later in 2018.

In total 65 reverse circulation holes for 3,314 metres, nine diamond holes for 737 metres and one aircore hole were completed.

Other results include 1 metre at 7.68% zinc, 1.48 g/t gold, 305 g/t silver, 1.88% lead and 0.31% copper from 76 metres; 7 metres at 2.24 g/t gold and 81 g/t silver from 88 metres; and 5 metres at 3.28% zinc and 1.37 g/t gold from 35 metres.

Early production schedules supported

Shallow grade control drilling has confirmed near-surface gold-silver rich mineralisation to support early production schedules.

Fox said: “Since the PFS was published in mid-2017, an ideal site to construct process and tailings management facilities has been acquired, debt has been eliminated and there has been considerable improvement in spot commodity prices.

“Current zinc spot prices of US$1.57 per pound are +34% higher than the PFS average price used of US$1.17 per pound.

“Forward price updates along with ongoing project optimisation will be incorporated into the DFS.”

The Hayes Creek project is 170 kilometres south of Darwin.

Hayes Creek comprises the Iron Blow and Mt Bonnie zinc-gold-silver deposits, less than 3 kilometres apart within the Pine Creek region.

READ: PNX Metals poised to acquire preferred site for Hayes Creek processing plant

PNX recently executed an agreement with a subsidiary of Kirkland Lake Gold Ltd to acquire four mineral leases at Fountain Head, thus securing the preferred site for the proposed processing plant and tailings facility.

View full PNX profile View Profile

PNX Metals Ltd Timeline

Related Articles

picture of gold and dollars
June 27 2017
“We believe the planned development of the Miraflores gold mine will provide the backbone for transforming the company"
AuKing Mining: Access latest PPT from Proactive's CEO Sessions
June 19 2017
Paul Williams talked gold-silver potential of Mexico with investors.
Asiamet
February 08 2018
Asiamet's house broker Optiva has doubled its price target to 19p

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use