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- PNX Metals (PXN) has provided an update on the proposed Fountain Head gold heap leach development at the Hayes Creek Project
- Assay results have now been received for all reverse circulation drilling completed at the project up to the end of 2019
- Gold grading more than 14 grammes per tonne was intersected
- A further 31 holes were also completed in January and February of this year
- PNX’s share price has remained steady today with shares trading for 0.6 cents apiece
PNX Metals (PNX) has provided an update on the proposed Fountain Head gold heap leach development within its Hayes Creek Project.
The Hayes Creek zinc-gold-silver project is located 170 kilometres south from Darwin in the Northern Territory and comprises of 14 wholly-owned mineral leases.
A pre-feasibility was completed in late June 2017 and this confirmed the project to be a high value, relatively low risk and technically strong development opportunity for PNX.
Drilling and technical studies at the Fountain Head are progressing on schedule and on budget as the company assesses the feasibility of a heap leach operation as a low-cost option for generating early cashflow.
Assay results have now been received for all reverse circulation (RC) drilling completed up to the end of 2019.
A total of 27 of the 30 RC holes drilled intersected gold mineralisation above the anticipated 0.5g/t gold cut-off grade.
This demonstrates good geological continuity and increases PNX’s confidence in the mineral resource model.
High-grade results include two metres at 14.57g/t gold from 11 metres, one metre at 14.24g/t gold from 53 metres, and three metres at 8.54g/t gold from 34 metres.
A further 31 holes RC holes, for 3048 metres, were drilled at the project in January and February and as predicted by a geological model, numerous structural zones that typically host gold mineralisation were intersected.
Assay results are expected during March.
Diamond drilling that forms part of a geotechnical study and open-pit mine design is also underway and is expected to be completed in late March.
Screen fire assays (separating metals from impurities) will also be completed on selected intersections to better understand the characteristics of the gold mineralisation.
Once all assays have been received, assessed and reported, an update to the Fountain Head mineral resource will be completed which is scheduled for August.
“The company’s assessment of the Fountain Head heap leach operation has to date not been hindered by the Northern Territory wet season, with excellent drilling progress being made,” Managing Director James Fox commented.
“We look forward to providing the viability of the project over the coming months and targeting from the end of the year. This will pave the way for the generation of early cashflow and should aid in the development of the broader Hayes Creek Project,” he added.
PNX’s share price has remained steady today with shares trading for 0.6 cents in a $14.61 million market cap.
