PNX Metals intersects further high-grade gold mineralization at Fountain Head

PNX Metals Limited (ASX: PNX) has announced additional high-grade assay results from the follow-up RC drill program at its Fountain Head gold project in the Pine Creek region of the Northern Territory.

The company reported that results from RC drilling at Fountain Head Project returned high-grade gold intersections, including 3m at 25.94 g/t Au from 117m and 4m at 5.39 g/t Au from 82m.

PNX said that the results confirm high-grade continuity at depth and along strike adjacent to the current resource envelope.

The company noted that the Fountain Head gold project has the potential to grow resources through further exploration along strike, and said that further drilling has been planned to commence in December.

Hayes Creek project

The Hayes Creek zinc-gold-silver project is located in the Pine Creek region of Northern Territory, 170km by road south of Darwin.

The project comprises 14 wholly-owned mineral leases including the Mt Bonnie (open-cut) and Iron Blow (underground) zinc-gold-silver deposits, and the Fountain Head gold prospect.

The project’s JORC 2012 mineral resource estimate (85% Indicated, 15% Inferred) across the Iron Blow and Mt Bonnie deposits contains 177Kt zinc, 238Koz gold, 16.2Moz silver, 37Kt lead, and 10Kt copper.  This is equivalent to 1.1 million ounces of gold, or 445,000 tonnes of zinc.

The company had recently released a Mineral Resource estimate for the Fountain Head Project of 2.58Mt at 1.7g/t Au for 138,000 oz Au.

Drilling at fountain Head

After the release of the MRE, the company had commenced a follow-up reverse circulation (RC) drill program of 1,669m at Fountain Head. The assay results from the program have now been announced.

High-grade results

PNX announced that the RC drilling at Fountain Head Project returned high-grade gold intersections.

Highlights include 3m at 25.94 g/t Au from 117m in hole FHRC106, 4m at 5.39 g/t Au from 82m in hole FHRC108, and 3m at 5.25 g/t Au from 110m in hole FHRC117.

Interpreting drill results

PNX noted that the drill program was successful, with numerous mineralised intercepts confirming good high-grade continuity at depth and along strike, directly adjacent to the current resource envelope.

The company reported that sgnificant mineralisation favours the intersection of greywacke bedding and steeply oriented structural breccia units – these mineralised ‘pipes’, plunging to the south-west at -20 to -40 degrees, are a new exploration vector and provide numerous open areas to test with the potential for higher-grade ‘trap sites’.

PNX said that the deeper high-grade intercepts drilled in FHRC110 and FHRC106 confirm continuity of bedding-controlled mineralisation that is trending towards the north-west and has the potential to connect with near-surface mineralisation that currently sits outside the existing Mineral Resource envelope.

Next steps

PNX Metals announced that due to the success of the drill program, it is planning further drilling at Fountain Head to test the potential for future growth in the current resources. The company said that this is planned to commence in December.

The company reported that further drill work will be focused on testing for dip extensions and strike extensions and to confirm grade and geological continuity implied by the current block model.

PNX said that further metallurgical work including materials handling and column tests will be conducted and incorporated in the assessment of Fountain Head heap leaching.

Management comments

PNX Managing Director James Fox said: “These drill results confirm our view that significant mineralisation exists outside the current resource envelope at Fountain Head, consistent with the recently developed geological model.

Numerous targets have now been identified and with further testing there is the potential to grow resources. This exploration work is being undertaken as part of the Company’s efforts to determine the viability of a heap leach operation at Fountain Head that may pave the way for the development of the broader Hayes Creek Project.”

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Written By Christopher Norris
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