PNX Metals high-grade gold results confirm potential upside at Fountain Head

PNX Metals Ltd (ASX:PNX) has received additional high-grade gold hits from reverse circulation (RC) drilling which confirm further continuity of high-grade mineralised zones at Fountain Head Gold Project in the Northern Territory.

All assays from the 59-hole RC program have been received with results of up to 2 metres at 4.46 g/t gold from 114 metres, 2 metres at 6.62 g/t from 144 metres and 1-metre at 12.54 g/t from 64 metres.

Resource update

An updated mineral resource estimate for Fountain Head is due shortly, which will inform pit optimisation and proposed mining schedules.

The drilling program was designed to provide support to the mineral resource estimate and has resulted in increased confidence in the geological model as well as the projects economics.

At Fountain Head East the RC results have intersected mineable gold lodes and correlate with alteration trends that follow brecciated zones crosscutting the Fountain Head Anticline axis at a low angle, similar in orientation to the high-grade Tally-Ho lode.

Increased drill resolution and data density have resulted in increased definition and reinterpretation of the mineralisation from one broad, near-vertical lode to multiple individual lodes oriented at a lower angle of about 45 degrees, which remain open at depth and along strike to the east.

Upgrade expected

The latest results are expected to elevate a significant portion of the Fountain Head East zone from the inferred resource category to the indicated category.

Any further drilling in this area is likely to occur from within the pit after dewatering due to difficulties in drilling at a shallow angle under the pit.

Fountain Head drill plan showing hole traces and collar locations.

PNX has also completed agglomeration and permeability testing, which provides sufficient percolation and clarity of pregnant leach solution for the leaching of gold.

The leach columns are now operational and expected run for at least six weeks with initial results expected from mid-June.

EIS technical studies

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