PNX Metals (ASX:PNX) has executed a sale and purchase agreement with privately held Ausgold Trading to acquire the Mt Porter gold deposit.
The deal is for $1.05 million, incorporating PNX shares with a deemed value of 0.04 cents as well as a cash component.
Further staged payments are required subject to certain resource scale and development hurdles being met.
The company reports that the acquisition is consistent with PNX’s strategy to consolidate nearby projects which host existing gold, silver, or base metals mineral resources to support the proposed Fountain Head and Hayes Creek development, and have significant exploration upside.
The Mt Porter Mineral Lease (ML23839) is situated some 50km southeast of the proposed plant and infrastructure at Fountain Head via the existing Mt Wells Road.
A JORC 2012 compliant Mineral Resource Estimate (MRE) of 681,000 tonnes at 2.2g/t Au for 48,200oz Au, with 84% reporting to the higher-confidence Indicated category, was completed by independent mining consultants Measured Group on 28 June 2022.
PNX’s current exploration and development projects are located about 170km south of Darwin in the Pine Creek region of the Northern Territory.
Commenting on the acquisition, PNX Managing Director James Fox said: “The Mt Porter gold deposit is near-surface, can be mined via open-pit, and will integrate well with the proposed development plans at the Fountain Head gold and Hayes Creek zinc-gold-silver projects.
“The Mt Porter gold deposit is near-surface, can be mined via open-pit, and will integrate well with the proposed development plans at the Fountain Head gold and Hayes Creek zinc-gold-silver projects”
The upfront cost of the gold ounces at Mt Porter is below the market average taking into account the high confidence, with 84% in the Indicated category, and highly prospective exploration targets which exist along strike and have the potential to provide additional scale to future operations.”
Mt Porter will become part of PNX’s integrated gold, silver and zinc development strategy which is expected to mine and process ore from five 100%-owned discrete deposits (Fountain Head, Glencoe and Mt Porter (gold), and Mt Bonnie and Iron Blow (zinc-gold silver)), all of which are located on granted MLs in the Pine Creek region of the Northern Territory.
MREs have been established for each of these deposits and a Pre-feasibility Study was released in mid-2021 detailing the proposed development strategy (excluding Mt Porter).
The company is also in the process of updating the Project capital and operating costs with its engineering partner, Como Engineers, using a simplified flowsheet. This is expected to partly offset cost inflation pressures being experienced for resource projects globally and will be used to update the project’s financial model and for ongoing discussions with prospective financiers.
The NT EPA published PNX’s Fountain Head Supplement to the Environmental Impact Statement (EIS) on 3 August 2022.
An assessment report is to be prepared and provided to the Minister for Environment to consider, expected to be towards the end of CY 2022.
Write to Adam Orlando at Mining.com.au
Images: PNX Metals Ltd & iStock
