- A 2000 metre follow-up reverse circulation drill program has been planned for PNX Metals’ Fountain Head gold project
- Drilling will take approximately three weeks with assays available from late September
- The potential exists for future growth through further exploration along strike
PNX Metals has planned a 2000 metre follow-up reverse circulation (RC) drill program at its Fountain Head gold project in the Northern Territory.
Fountain Head, along with Iron Blow and Mt Bonnie VMS deposits, make up the Hayes Creek zinc-silver-gold project.
This upcoming drill program will follow the recently released maiden JORC 2012 resource of 2.58 million tonnes grading 1.7g/t gold for 138,000 ounces of gold.
Drilling will also test areas of unbounded mineralisation beyond the current resource envelope and potential high-grade zones within the resource estimate.
Interpretation of data over the gold mineralisation suggests increased grades and thicker intercepts. The program will target these structural areas as they appear to provide the greatest potential to deliver significant intersections.
Once this phase is complete, further drilling is planned to target extensions to any new mineralised zones at depth and to increase the density of drill data along the 1.6-kilometre strike.
This will support the potential for additional mineral resources.
“We are excited to recommence drilling at the Fountain Head gold project where the defined gold lodes are interpreted to represent the possible near-surface expression of a much larger and previously overlooked gold system,” Managing Director James Fox commented.
“The recent completion of a new gold mineral resource at Fountain Head is an important development for the Company and has led to a much better understanding of the geology and controls over the gold mineralisation in the area.”
PNX is progressing well with its Hayes Creek definitive feasibility studies (DFS) which are on time and budget. It recently completed a fully underwritten rights issue to raise $5.48 million.
The DFS is expected to provide increased confidence in all aspects of the project as well as investigate opportunities to improve mine life and overall economics.
“Continued exploration success, enhanced by this understanding, will likely add significant value to the Hayes Creek project and improve the already robust case for its development,” James added.