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PNX Metals about to drill gold and base metal targets near Hayes Creek development project

Fountain Head gold prospect is the first target in the company's 2018 regional exploration program.

Gold on quartz rock
The company is seeking gold mineralisation to add to mine life at Hayes Creek

PNX Metals Ltd (ASX:PNX) is about to begin an extensive near-mine and regional exploration program for gold and base metals in the Pine Creek Orogen of the Northern Territory.

The first part of the program will be drilling at the Fountain Head prospect, which PNX recently signed an agreement to acquire from a subsidiary of Kirkland Lake Gold Ltd (TSE:KL).

Analysis of historical data has identified the potential for significant gold mineralisation to complement and enhance the company’s Hayes Creek project.

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

The Fountain Head lodes are interpreted to represent the near-surface expression of a much larger and previously overlooked gold system.

Historical results include 26 metres at 17 g/t gold from 139 metres and 7 metres at 9.3 g/t from 144 metres.

The proposed Hayes Creek processing facilities are intended to be located on the Fountain Head minerals leases but the exploration is not expected to interfere with this use.

Seeking to increase mine life

PNX aims to identify additional economic mineralisation with the potential to increase mine life at the Hayes Creek Project to beyond 10 years.

Other high-priority targets to be further explored during the 2018 field season include Burnside and Moline.

Exploration Mine Management Plans have been submitted and are awaiting Department of Primary Industry and Resources approval, which is anticipated shortly.

Ithaca prospect next focus

The Ithaca prospect in the Burnside project area is likely to be the next focus point.

It is a large tonnage high-grade gold prospect in the western portion of the project area.

Ithaca lies along the same structural corridor as Kirkland Lake Gold’s 2 million ounce Cosmo Howley Gold Mine, which is 20 kilometres away.

There have been numerous near-surface, historical high-grade gold intersections identified at Ithaca over a near-continuous 5-kilometre strike extent with no follow up work since the mid-1990s.

These include 12 metres at 11.4 g/t gold from 6 metres and 5 metres at 15.02 g/t from 39 metres.

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

At the flagship Hayes Creek zinc and precious metals development project, PNX is advancing a definitive feasibility study towards completion, with an environmental assessment underway.

The project hosts a high-grade mining inventory of 3 million tonnes at 11.9% zinc equivalent.

PNX has a zinc, gold and silver annual production estimate of about 40,000 zinc equivalent tonnes.

Quick facts: PNX Metals Ltd

Price: 0.012 AUD

Market: ASX
Market Cap: $29.22 m

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PNX Metals drilling prospects near Hayes Creek Project as DFS continues

PNX Metals Ltd (ASX:PNX) managing director and CEO James Fox speaks to Proactive Investors about the multi-commodity exploration and development company's Northern Territory operations. The company is focused on the development of its flagship Hayes Creek zinc-gold-silver project, and...

on 26/6/18

3 min read