The recent acquisition of a nearby “bolt on” gold discovery has significantly increased the global mineral resource of PNX Metals’ (ASX: PNX) flagship Fountain Head project at Pine Creek in the Northern Territory.
The advanced explorer announced in December it would acquire the Glencoe deposit from private group Ausgold Trading Pty Ltd in a $1.875 million deal which had the potential to expand Fountain Head and achieve first gold pour by mid-2022.
Glencoe sits just 3km north of the project and hosts an inferred resource of 2.1 million tonnes at 1.2 grams per tonne gold for 79,000 ounces gold.
It remains open in all directions, extends from surface to 120m vertical depth and comprises discrete lodes over about 1.5km of strike.
New global figure
Glencoe’s resource adds to Fountain Head’s mineral resource estimate of 2.94Mt at 1.7g/t gold for 156,000oz, to create a new global figure of 235,000oz.
PNX managing director James Fox said the increased resource bodes well for the project’s development.
“Glencoe lies on the same structural trend as Fountain Head and represents the first of many opportunities we have identified with potential to significantly add to our existing gold resource base, and to generate flexibility in our development strategy,” he said in the December acquisition announcement.
“The new resource enhances the proposed development of Fountain Head and our goal of first production by the middle of next year.”
‘Bolt on’ asset
PNX describes the Glencoe acquisition as a “bolt on” asset with potential to enhance and expand Fountain Head’s development.
The deposit’s mineralisation has been defined within four main lodes over an approximate 500m surface strike extent.
Limited historic drilling has been conducted in the area to a maximum depth of 30m with multiple high-grade gold intercepts representing targets for new extensional lode positions.
Historic costeaning has outlined additional areas where oxide gold mineralisation outcrops along with massive quartz veining.
According to PNX, all targets are drill ready and will be tested once the NT’s wet season officially ends this month.
Other priority targets exist at Fountain Head where the company recently identified a new untested gold lode position adjacent to the main gold resource.
PNX is finalising an assessment of low risk and scalable processing infrastructure to rapidly monetise and generate early cashflow from gold resources at Fountain Head, Glencoe and the Mt Bonnie gold-silver oxides (which is part of the high-grade Hayes Creek zinc-gold-silver project within the Fountain Head mineral leases).
“This strategy may also provide us with an opportunity to enhance the economics of the overall Hayes Creek project by extending the project mine life with a future mined-out Fountain Head pit available to store tailings from sulphide flotation of ore,” Mr Fox said.
Having received approval last month for a variation to its mine management plan to allow for dewatering of the Fountain Head pit, the company is now working with consultants on the project’s environmental impact statement for submission next month.