(MENAFN- ProactiveInvestors - Australia) PNX Metals Ltd (ASX:PNX) has received the first two diamond drill hole assays from the infill and extensional program at Iron Blow located within the Hayes Creek gold-silver-zinc project in the Northern Territory.
Two zones of massive sulphide mineralisation have been intercepted including 16.2 metres at 18.4% zinc equivalent.
Four holes for 1,200 metres have been completed at Iron Blow as part of the a planned 32 hole program.
Drilling at Iron Blow will continue into late December 2016 with a resource upgrade expected in early 2017.
James Fox, managing director, commented:
'It is pleasing to see continuing thick zones of massive sulphide mineralisation with excellent zinc and gold grades being encountered at Iron Blow, especially as zinc prices have reached an 8½-year high and reflect strong fundamentals.
'With three drill rigs operating in parallel we aim to complete the predominantly infill program by late December.'
Drilling details
High grade zinc, gold and silver assay results have been received from the Iron Blow infill and extensional drill program including:
- 16 metres at 18.4% zinc equivalent or 10.70% zinc, 4.80 g/t gold, 256 g/t silver, 2.42% lead and 0.37% copper from 138 metres including 11 metres at 25.9% zinc equivalent; and
- 41 metres at 6.6% zinc equivalent or 3.43% zinc, 2.04 g/t gold, 86 g/t silver, 0.54% lead and 0.32% copper from 184 metres including 7.7 metres at 18.3% zinc equivalent.
All holes drilled to date have intersected visible zones of massive and semi-massive sulphide mineralisation.
Two zones of massive sulphide mineralisation have been intercepted, an eastern hanging wall lode and underneath, a broader western footwall lode.
Hayes Creek pre-feasibility study
The Hayes Creek pre-feasibility study is fully funded and due for completion by May 2017.
It will expand on the scoping study completed in March 2016, which found that mining and processing ore derived from the proposed open-pit and underground operations at Hayes Creek would generate positive financial returns.
Hayes Creek is located in a favourable mining jurisdiction in the Pine Creek region of Northern Territory, less than two hours by road from Darwin.
The development strategy includes the use of existing infrastructure, designed to boost economics and reduce project risk.
Regional exploration
A 12 hole, 1,497 metre reverse circulation drilling program has recently been completed at the Moline Project.
Wet weather intervened to cut the program short of plan however the three mineralised structures were tested with first results expected next week.
The Burnside Project, Moline and Chessman prospects form part of PNX's farm-in agreement with Newmarket Gold NT Holdings Pty Ltd, a subsidiary of Newmarket Gold Inc. where PNX is earning up to 90 per cent, in two stages, of the 1,700 square kilometre area.
Total expenditure at 31 October 2016 for the purpose of the first stage of the farm-in was $1.9 million. A further $0.1 million is required to be, and will be, spent by December 2016 to achieve the first stage earn-in of 51%.
Analysis
Initial results from the infill and extensional drilling indicate the potential this program has to add value to the Hayes Creek project by identifying economic mineral resources.
With three drill rigs operating in parallel, PNX expects news flow from the program to continue and aims to complete the predominantly infill program by late December.
The medium term goal for PNX is updating the resource estimate next year and this will, along with an upgraded resource at Mt Bonnie, allow for completion of the Hayes Creek pre-feasibility study by mid-2017.
The gold exploration drill program at Moline has been completed with assay results due shortly. This has the potential to unlock further value for PNX.
Shares in PNX are up 130% year to date, currently trading at $0.023.
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