PNX Metals (ASX:PNX) has completed an induced polarisation (IP) survey at the Swan prospect within the Moline Project located in the Pine Creek region of the Northern Territory.
Swan is one of three recently identified high-priority zinc targets identified by strong surface geochemical signatures at Moline.
Two targets have been generated by the survey at Swan, a near-surface zinc-lead target, and a deeper 75-100 metre potentially gold sulphide target.
Notably, the zinc-lead target is located 250 metres from a historical intersection of 1-metre at 4.66% zinc, 11.37 g/t gold, 95.5 g/t silver and 0.90% lead from 45 metres depth.
Reverse circulation drilling will commence at Swan in early December subject to approvals and will target the main part of the magnetic anomaly.
James Fox, managing director, commented
“The results received from the first IP survey at Moline are excellent. Two new targets have been identified in close proximity to existing zinc and gold mineralisation.
“Drilling of these new targets is to commence in December with additional IP surveys nearing completion and results due shortly.
“Historic zinc and gold production in the area provides indication of the potential and we look forward to completing the planned work program.”
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 Burnside, Moline and Chessman Projects form part of PNX’s farm-in agreement with a subsidiary of Kirkland Lake Gold Ltd (TSE:KL).
PNX currently holds a 51% interest (excluding uranium) in these project areas, covering circa 1,700 square kilometres in the Pine Creek region of the Northern Territory.
The company has proceeded to the second stage of the farm-in whereby it can increase its interest in each of the tenements to 90% (excluding uranium) with expenditure of $2 million by 15 December 2018.
Circa $1.3 million of this has been already spent.
Drilling recently commenced at Hayes Creek
PNX recently commenced a 4,000-metre reverse circulation and diamond drilling program at Hayes Creek to support the definitive feasibility study (DFS) and potentially extend the mine life.
Drilling is for resource extension, mine planning, hydrology, metallurgical and waste characterisation purposes.
The DFS is progressing well and is expected to be completed in 2018.
The pre-feasibility study forecasts the project to generate a net present value (NPV) of $133 million over a 6.5-year mine life.