PNX Metals Ltd (ASX:PNX) has increased and improved confidence in mineral resources at Fountain Head and Tally Ho gold deposits in the Northern Territory to 2.94 million tonnes at 1.7 g/t gold for 156,000 ounces.
This resource update has added 18,000 ounces of gold to the resource and the new estimate includes a 20.5% increase to the indicated resource category.
The 13% increase to the Fountain Head resource, which incorporates both deposits, is based on new geological information derived from analysis and interpretation of the most recent 2019 and 2020 diamond and reverse circulation (RC) drilling campaigns.
PNX drilled 77 RC holes and two diamond holes for 7,402 metres from August 2019 to February 2020.
Update to "inform pit optimisation”
Managing director James Fox said: “We are pleased to have delivered an increase in contained gold and gained further support for our geological understanding of and confidence in the mineralisation at the Fountain Head Gold Project.
“This updated mineral resource estimate will be used to inform existing pit optimisation and proposed mine schedules to support mining at Fountain Head.
“The company is currently assessing a number of proposals to assist with the project capital required for development.”
CSA Global was engaged by PNX to assist with geological modelling and to prepare mineral resource estimates for the Fountain Head and Tally Ho deposits.
The mineral resource occurs from surface down to approximately 190 metres and is amenable to open pit mining methods.
Fountain Head deposit contributes 96,000 ounces of the resource with Tally Ho the remainder.
The company is assessing low-cost, low-risk and scalable processing options to rapidly monetise and generate early cashflow from the gold resources at Fountain Head.
This strategy may provide an opportunity to enhance the overall Hayes Creek Zinc-Gold-Silver Project economics and extend the project mine life.
Near-term development of gold resources also capitalises on a supportive current and forecast gold price environment and preserves the in-ground value of the Hayes Creek project for a possible higher future zinc price environment.