PNX Metals Ltd (ASX:PNX) has the reverse circulation (RC) drill spinning in a program of up to 2,000 metres testing for further gold at the 79,000-ounce Glencoe deposit in the Pine Creek region of the Northern Territory.
An improved geological model has highlighted numerous areas to test for extensions to defined lodes and the current program is focusing on three targets – 1, 3 and 4.
It will seek mineralised extensions where near-surface gold anomalism highlights along-strike potential along with gold-bearing quartz veins oblique to the main gold lodes identified by surface rock chip samples that returned up to 35.8 g/t and 33.1 g/t.
Glencoe is on a granted Mineral Lease (ML) about 170 kilometres south of Darwin and just 3 kilometres north of PNX’s Fountain Head Gold Project in the gold-rich Pine Creek region.
Part of integrated NT strategy
PNX managing director James Fox said: “Glencoe is a key component of PNX’s NT gold development strategy.
"The current Glencoe mineral resource remains open in all directions and with further drilling success, has the potential to significantly enhance project economics at the company’s proposed Fountain Head Gold development.”
Location of the Glencoe ML in relation to the Fountain Head Gold Development Project.
Potential to grow resource
Near-surface anomalism outlines the potential to considerably expand the mineralised footprint.
Glencoe’s current resource is 2.1 million tonnes at 1.2 g/t gold for 79,000 ounces with 77.4% in the measured and indicated categories.
This deposit is a key component of PNX’s integrated gold, silver and zinc development strategy.
This outlines the mining and processing of ore from five 100%-owned discrete deposits in granted MLs - Fountain Head, Glencoe and the recently acquired Mt Porter gold deposits as well as the Mt Bonnie and Iron Blow zinc-gold-silver deposits.
PNX’s global mineral resources now contain a total metal inventory of 520,900 ounces of gold, 16.2 million ounces of silver, 177,000 tonnes of zinc, 37,000 tonnes of lead and 10,000 tonnes of copper.
Updated costs
A pre-feasibility study (excluding Mt Porter) was released in mid-2021 detailing the proposed development strategy.
Subsequently, the company has received updated project capital and operating costs from its engineering partner, Como Engineers, using a simplified flowsheet.
These updated costs have partly offset cost inflation being experienced during construction for projects globally and will now be used to update the project financial model and for ongoing discussions with prospective financiers.
Study progress
A pre-feasibility study (excluding Mt Porter) was released in mid-2021 detailing the proposed development strategy.
Subsequently, the company has received updated project capital and operating costs from engineering partner, Como Engineers, using a simplified flowsheet.
These updated costs have partly offset cost inflation being experienced during construction for projects globally and will now be used to update the project 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 August 3, 2022. An Assessment Report is to be prepared and provided to the Minister for Environment to consider and this is expected to be towards the end of the year.