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PNX Metals hits high grade gold with first holes at Moline Project

Published: 12:50 05 Dec 2016 AEDT

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PNX Metals has drilled up to 23.7 g/t gold from Moline.

PNX Metals (ASX:PNX) has received initial assays from two holes grading up to 23.7 g/t gold at the Moline exploration project located in the Pine Creek region of the Northern Territory.

12 holes have been completed and highlights from the first two holes include 9 metres at 2.66 g/t gold and 7 metres at 11.89 g/t gold.

The Moline project is located 65 kilometres from the company’s flagship Hayes Creek gold-silver-zinc project.

The drill program was designed to test three mineralised structures that were partly mined for oxide mineralisation in the early 1990s. Remaining assays are due shortly.

James Fox, managing director, commented: “We are attracted by the opportunity to quickly define sizeable and high-grade mineral resources by building on existing datasets at Moline.”


Moline drill program

A total of 12 reverse circulation holes were completed for 1,497 metres during November.

Assays from two holes drilled beneath a historical open-pit at the School prospect include:

- 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.

Drilling has observed at least two main lodes, comprising a western and eastern lode.

Mineralisation is open in all directions, providing significant scope for further exploration success.


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 May 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.


Other recent drill results

PNX recently received the first two diamond drill hole assays from the infill and extensional program at Iron Blow located within the Hayes Creek gold-silver-zinc project.

Two zones of massive sulphide mineralisation were intercepted including 16.2 metres at 18.4% zinc equivalent.

At the end of November, four holes for 1,200 metres had been completed at Iron Blow as part of the a planned 32 hole program.


Analysis

Initial drill results from the Moline project show new high grade gold mineralisation with the potential of defining a shallow resource.

With base metal associations identified in historical data, Moline shows synergies with the nearby flagship Hayes Creek project.

PNX remains leveraged to exploration news flow over the short term with assays from the other completed holes at Moline expected shortly.

Furthermore, with drill rigs operating at the Iron Blow prospect, PNX expects news flow from the program to continue and aims to complete the predominantly infill program by late December. 

The medium term goal for PNX is updating the resource estimate next year and this will, along with an upgraded resource at Mt Bonnie, allow for completion of the Hayes Creek pre-feasibility study by mid-2017.

Shares in PNX are up 130% year to date, currently trading at $0.023.

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