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PNX Metals identifies new Burnside gold targets for immediate follow-up

Published: 15:42 09 Oct 2020 AEDT

PNX Metals Ltd - PNX Metals identifies new Burnside gold targets for immediate follow-up
Targets areas are characterised by geochemical anomalism and bedrock mineralisation

PNX Metals Limited’s (ASX:PNX) (FRA:4P1) regional review of its Burnside Exploration Project in the Pine Creek region of the Northern Territory has identified multiple high-priority gold targets for immediate follow-up.

The company believes that the four areas it has prioritised have the potential to host economic quantities of gold.

These areas are part of the Burnside project which covers about 950 square kilometres surrounding the company’s 100%-owned Fountain Head Gold Project.

At Fountain Head, PNX is finalising formal documentation regarding a proposed $40 million financial commitment by Halifax Capital and the formation of a JV with Bridge Creek Mining (BCM) to develop existing gold resources and establish processing infrastructure.

“Excellent working relationship”

PNX managing director James Fox said: “PNX and BCM have been working closely together over the last few months and have developed an excellent working relationship.

“This has led to the clarification of outstanding items relating to formal documentation and operating parameters for the joint development of the Fountain Head gold deposit and process infrastructure.

“Accordingly, PNX and BCM have mutually agreed to extend the period for documentation to November 16, 2020, and both parties look forward to the successful completion of the agreement, and subsequent development to target gold production from the end of 2021.”

Of Burnside, he said: “The identification of multiple high-priority regional gold targets reinforces the company’s belief that Burnside has potential to support a long-life gold mining operation starting at Fountain Head and supported by new regional discoveries in the longer term.”

Burnside Exploration Project location.

Burnside Exploration Project

The Burnside project, which is highly prospective but underexplored, is in an area that hosts historic gold endowment in excess of 3 million ounces.

Targets are defined by large geochemical anomalism and supported by favourable structural settings with limited drilling.

PNX aims to discover and define additional ‘standalone’ gold deposits and those that can be processed through the proposed Fountain Head mill.

Fox said: “The Burnside Project area has a substantial gold endowment with a long history of prospecting and mining dating back to the late 1800s.

“We have applied new exploration concepts to the project and reviewed historic results in light of a stronger gold price and modern exploration methodologies.

“Historic gold exploration relied heavily on surface prospecting and as a result, large areas with limited outcrop near existing mineralisation remain essentially untested.”

Exploring potential

Concurrent with development activities relating to Fountain Head, PNX has been systematically reviewing the broader Burnside area to identify targets with the potential to host significant standalone gold deposits and supplement gold processing operations at Fountain Head.

Burnside Exploration Project tenements and gold targets.

PNX’s recent assessment has highlighted that areas along strike from existing mineralisation and non-outcropping areas have not been effectively explored and remain essentially untested despite being highly prospective for gold mineralisation.

Fox said: “Of the 36,000 holes drilled by previous explorers at Burnside, 70% have a depth of 10 metres or less.

“We believe there is considerable potential for the discovery of significant gold resources. Fieldwork is underway to further evaluate the priority prospects ahead of drilling.”

The company has also started validation of the targets in the field with a program of geological mapping and surface geochemical sampling and will progress to drilling if warranted.

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