PNX Metals (ASX:PNX) reports ‘significantly’ improved geological classification for the Glencoe Gold Deposit.
The Glencoe deposit, located 3km north of the Fountain Head Gold Project, now has 77.4% of the Mineral Resource Estimate (MRE) in the higher confidence Measured and Indicated categories.
Both gold deposits are contained within granted mineral leases 100% owned by PNX and situated in the Pine Creek region of the Northern Territory.
Glencoe is a critical part of PNX’s integrated gold, silver and zinc development strategy which is proposing to mine and process ore from four 100% owned discrete deposits (Fountain Head and Glencoe (gold), Mt Bonnie and Iron Blow (zinc-gold-silver).
MREs have been established for each of these deposits and a Prefeasibility Study was released in mid-2021 detailing the proposed development strategy.
The company reports it is also in the process of updating project capital and operating costs with its engineering partner Como Engineers using a simplified flowsheet.
This is expected to partly offset cost inflation being experienced during construction for projects globally and will be used to update the project financial model and for ongoing discussions with prospective financiers.
“The updated Mineral Resource at Glencoe will assist with advancing PNX’s NT gold and base metals development strategy”
PNX Managing Director James Fox said: “The updated Mineral Resource at Glencoe will assist with advancing PNX’s NT gold and base metals development strategy.
A significant improvement in the geological classification, with the majority now reporting to the high confidence Measured and Indicated categories, and an improved geological model has resulted in a more robust mineral resource, and highlighted numerous open areas to be drill tested, all with potential to considerably expand the mineralised footprint.
A government co-funded drone-magnetic survey was recently completed over the Glencoe and Fountain Head gold deposits, and the Mt Bonnie and Iron Blow zinc-gold-silver deposits.
The data is currently being processed and will be used to further refine new target areas for drill testing.”
The Glencoe MRE update was informed by a revised geological model using analysis and assays from new drilling with 4,470m of reverse circulation (RC) drilling and 220m of diamond drilling completed by PNX in 2021 and 2022.
PNX’s drilling mainly focused on the historic North-Central trial pit where Measured Resources are now outlined and traced these gold lodes to the east for about 400m.
Images: PNX Metals Ltd
