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PNX Metals high-grade gold results confirm potential upside at Fountain Head

An updated mineral resource estimate for Fountain Head is due shortly, which will inform pit optimisations and proposed mining schedules.

PNX Metals Ltd - PNX Metals' RC drilling further highlights continuity of high-grade mineralised zones at Fountain Head Gold Project
Technical studies are being finalised relating to the project's Environmental Impact Statement

PNX Metals Ltd (ASX:PNX) has received additional high-grade gold hits from reverse circulation (RC) drilling which confirm further continuity of high-grade mineralised zones at Fountain Head Gold Project in the Northern Territory.

All assays from the 59-hole RC program have been received with results of up to 2 metres at 4.46 g/t gold from 114 metres, 2 metres at 6.62 g/t from 144 metres and 1-metre at 12.54 g/t from 64 metres.

Resource update

An updated mineral resource estimate for Fountain Head is due shortly, which will inform pit optimisation and proposed mining schedules.

The drilling program was designed to provide support to the mineral resource estimate and has resulted in increased confidence in the geological model as well as the project’s economics.

At Fountain Head East the RC results have intersected mineable gold lodes and correlate with alteration trends that follow brecciated zones crosscutting the Fountain Head Anticline axis at a low angle, similar in orientation to the high-grade Tally-Ho lode.

Increased drill resolution and data density have resulted in increased definition and reinterpretation of the mineralisation from one broad, near-vertical lode to multiple individual lodes oriented at a lower angle of about 45 degrees, which remain open at depth and along strike to the east.

Upgrade expected

The latest results are expected to elevate a significant portion of the Fountain Head East zone from the inferred resource category to the indicated category.

Any further drilling in this area is likely to occur from within the pit after dewatering due to difficulties in drilling at a shallow angle under the pit.

Fountain Head drill plan showing hole traces and collar locations.

PNX has also completed agglomeration and permeability testing, which provides sufficient percolation and clarity of pregnant leach solution for the leaching of gold.

The leach columns are now operational and expected run for at least six weeks with initial results expected from mid-June.

EIS technical studies 

Technical studies relating to the Fountain Head Environmental Impact Statement (EIS) are being finalised.

The final terms of reference for the EIS have been received from the Northern Territory Environmental Protection Authority after the two-week public consultation period which the company is now reviewing.

No significant changes to the original scope have been identified.

The EIS is expected to be submitted by early July 2020.

Despite some delays caused by COVID-19 restrictions, including sample assay analytical results, the timeframe for completion of the technical studies and possible commencement of Fountain Head development by the end of 2020 remains achievable.

Discussions have also begun with prospective parties for the provision of project development funding.

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