NT Gold Deposit Remains Open In All Directions
PNX Metals Limited (ASX: PNX) has kicked off a reverse circulation (RC) drill programme of up to 2,000 metres has commenced at the Glencoe gold deposit in Australia’s Northern Territory.
Approximately 1/3 of the drill programme is designed to test for immediate extensions where near-surface gold anomalism highlights along-strike potential, with the remainder to be drilled within the boundary of the Mineral Resource to increase geological confidence.
Glencoe is located on a granted Mineral Lease approximately 170km south of Darwin and three km to the north of PNX’s Fountain Head Gold Project in the Pine Creek region of the NT.
This will be PNX’s first drill programme at Glencoe since acquiring the project. The company released a Mineral Resource Estimate (MRE), based on previous drilling, of 2.1Mt @ 1.2g/t Au for 79,000oz Au (Inferred Category) reported in accordance with the JORC Code, 2012 in April 2021.
Managing Director James Fox, said the Glencoe MRE remains open in all directions, extends from surface to 120 metres vertical depth and comprises a number of discrete lodes over a strike length of greater than 1.5km. The current drill programme is expected to improve geological confidence by testing the geological model and adding QA/QC information for any future MRE updates.
“Glencoe is a key component of PNX’s NT gold development strategy. The current Glencoe Mineral Resource remains open in all directions and with further drilling success, has the potential to significantly enhance project economics at the company’s proposed Fountain Head Gold development,” Mr Fox said.
The company recently finalised an assessment of the technical and economic parameters to sequentially develop the Fountain Head Gold Project (which includes Glencoe) and Hayes Creek gold-silver-zinc Project highlighting a robust, multi-commodity development with a forecast unleveraged Pre-tax NPV8% of A$171 million and a mine life of 10 years with undiscounted revenues of A$972 million over the mine life (net of treatment, refining and transport charges).
The Fountain Head Environmental Impact Statement was submitted in early June and is over halfway through its public consultation period, which finishes 8 August 2021. The company is expecting feedback by early September.
RC drilling was recently completed at Fountain Head, where four ‘near-mine’ exploration targets were tested. Final assay results and subsequent geological interpretation have been delayed due to the recent Darwin COVID- 19 lockdown and are expected to be completed by the end of July.
For further information please visit: https://pnxmetals.com.au/
