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PNX Metals shares up 20% after identifying visible gold from drilling at Fountain Head

Remaining drill assays are pending with an updated mineral resource due in May 2020.

PNX Metals Ltd - PNX Metals shares up 20% after identifying visible gold from drilling at Fountain Head
Visible gold in the Tally Ho lode at Fountain Head at 174.02 metres

PNX Metals Ltd (ASX:PNX) has multiple occurrences of visible gold identified in diamond drill core at the Fountain Head Gold Project, part of the broader Hayes Creek Project in the Pine Creek region of the Northern Territory.

The company’s shares were last trading 20% higher intra-day, at 0.6 cents.

Two diamond drill holes were completed in March to provide geotechnical information for the proposed open-pit mining operation and to capture new geological data from the southeastern end of the Tally Ho lode.

The first diamond hole drilled into the Tally Ho zone (FHDD181), intersected multiple occurrences of visible gold mineralisation in fractured quartz veining between 145 metres and 180 metres downhole, which is interpreted as the extension and thickening of the Tally Ho mineralisation down-dip.

Visible gold in the Tally Ho lode at Fountain Head in FHDD181 at 145.25 metres

The visible gold, up to 0.5 mm in size, occurs in late-stage fracturing of the quartz veining and has been geologically logged in the core in nine separate locations downhole.

PNX managing director James Fox said: “The drilling we are undertaking at Fountain Head continues to deliver significant results, which will help strengthen the case for the development of a heap leach operation as a source of early cash flow for the company.

“The presence of visible gold in the first diamond hole we have drilled at Tally Ho is particularly pleasing and supports our positive view on the potential of the area to continue to deliver gold ounces into the Project. “

COVID-19 precautions

PNX has taken appropriate measures in line with government advice regarding COVID-19 after taking into consideration the safety of its employees and contractors, in particular relating to interstate travel.

As such, the remaining 20 metres of FHDD181 will be logged and all assaying completed at a later date when access to site can be permanently re-established.

Drill hole FHDD181, and the occurrence of visible gold in the core is significant as it suggests not only that the highly prospective Tally Ho lode remains open along strike and at depth to the south-east, but that the majority of quartz veins at Tally Ho, in addition to those that have been identified as containing visible gold, have the potential to host significant coarse and nuggetty gold mineralisation.

Visible gold in diamond core at 173.43 metres and 174.02 metres from the Tally Ho lode at Fountain Head

This new information is in addition to exceptional gold grades reported recently from reverse circulation (RC) drilling, where new zones of broad high-grade gold mineralisation have been intersected near surface in the area between the Fountain Head and Tally Ho lodes over a strike extent of about 100 metres.

In this area, historically known as ‘LadderVein west’, material previously classified as waste or low-grade ore is being assessed for the potential to host grades that will potentially support early mining and an increase in gold resources.

Ongoing geotechnical, metallurgical and permitting work

Selected RC intersections from 2019 drilling at Fountain Head have been sent for screen fire analysis to better understand the characteristics of the coarse, nuggetty gold mineralisation, with these results due shortly.

Once all assays have been received, assessed and reported, an update to the Fountain Head Mineral Resource will be completed. The resource update is expected in early May.

PNX has been provided with draft Terms of Reference by the Northern Territory Environmental Protection Authority which it is now using to finalise the technical information required for the Project Environmental Statement.

Many Government departments are operating with skeleton staff due to Government advice and restrictions relating to COVID-19, it is unknown at this stage how or if the project approvals timeline will be affected.

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