- PNX Metals (PNX) has finalised a sale and purchase agreement with Ausgold Trading to acquire the Glencoe gold deposit for $1.875 million
- The Glencoe deposit is located less than three kilometres north of PNX’s Fountain Head Gold Project in the Northern Territory
- Now that the agreement has been finalised, PNX will work towards updating the project’s mineral resource and incorporating that into a mining plan
- The company will also soon begin a 4000-metre drilling program to follow up on high-grade gold
- PNX ended the day 12.5 per cent in the red with shares closing at 0.7 cents
PNX Metals (PNX) has finalised a sale and purchase agreement with Ausgold Trading to acquire the Glencoe gold deposit for $1.875 million.
PNX has already paid $500,000 and a further $675,000 is due once the agreement is executed. The final balance will need to be paid by December 31, 2021.
The Glencoe mineral leases are located less than three kilometres north of PNX’s wholly owned Fountain Head Gold Project in the Northern Territory. The project hosts a mineral resource estimate of 2.94 million tonnes at 1.7g/t gold for 156,000 ounces of gold.
“With the sale and purchase agreement for the Glencoe gold deposit nearing completion, the company will move to finalise an updated Mineral Resource estimate. These gold resources will be incorporated into the Fountain Head mining development schedule that also includes Mt Bonnie gold and silver oxides,” Managing Director James Fox said.
Gold mineralisation at the Glencoe deposit has been defined within four main mineral lodes over a 500-metre strike that remains open at depth and along strike.
While reverse circulation (RC) drilling is limited, past drilling has identified multiple high-grade gold intercepts that represent targets for new extensional lode positions.
To follow up on these, PNX will soon begin a 4000-metre RC drilling program once site access for the drill rigs is re-established.
Additionally, PNX is undertaking feasibility work for the project and will update an environmental impact assessment by quarter two.
PNX ended the day 12.5 per cent in the red with shares closing at 0.7 cents.