PNX Metals Ltd (ASX:PNX) has revealed the maiden resource for its Fountain Head Gold Project, which together with the Iron Blow and Mt Bonnie VMS deposits comprise the Hayes Creek zinc-gold-silver project in the Pine Creek region of the NT.
Fountain Head Gold Project resource (comprising the Fountain Head and Tally Ho deposits)
PNX managing director James Fox said: “This new gold mineral resource at Fountain Head is an important development for the company as it highlights the significant potential of our large NT exploration tenure and is complementary to existing resources defined for the Hayes Creek Zinc-Gold-Silver Project.
“The Fountain Head gold system is no doubt significant in scale, it extends over 1.6km at surface and remains open at depth along the strike extent.
“We are confident that with continued exploration success, Fountain Head would add significant value to the Hayes Creek Project and improve the already robust case for its development.”
Plan view of the Fountain Head and Tally Ho resources showing proximity to historical mining areas, mineral leases and drill collar locations
Fox added: “New geological re-interpretation and modelling based on historic drilling over the Fountain Head project has identified numerous high-value target areas with the potential to significantly extend the mineral resource with further drilling.
“Relative values of mining the gold resource at Fountain Head versus using the historic open pits for tails from the Hayes Creek Project will now be assessed along with processing options, and whether, and if so how, the two strategies might be combined.”
PNX is progressing well with the Hayes Creek definitive feasibility study (DFS), having recently completed a fully-underwritten rights issue to raise $5.48 million.
The DFS is on schedule and follows on from the successful completion of a pre-feasibility study (PFS) in mid-2017 which confirmed Hayes Creek to be a promising future low-cost, high margin zinc and precious metal mine.
The DFS is expected to provide increased confidence in all aspects of the project as well as investigate opportunities to improve mine life and overall project economics, thereby increasing the prospect of favourable development finance terms and structure.