Maiden drilling at Glencoe intersects high-grade gold zones for PNX Metals

PNX Metals ASX gold Glencoe Northern Territory
PNX has unearthed new gold zones at Glencoe, with one intercept assaying 3m at 5.37g/t gold from 31m.

Maiden drilling at PNX Metals’ (ASX: PNX) newly-acquired Glencoe gold deposit near Pine Creek in the Northern Territory has intersected multiple zones of near-surface, high-grade mineralisation.

A program of 27 reverse circulation holes for 2,352m identified immediate extensions to near-surface mineralisation southeast of an inferred mineral resource estimate released in April of 2.1 million tonnes at 1.2 grams per tonne gold for 79,000 ounces.

The resource extends from surface to 120m vertical depth, comprises a number of discrete lodes over a strike length of more than 1.5 kilometres, and remains open in all directions.

Mineralisation from drilling is believed to be thickening towards the southeast where broader zones containing multiple gold intercepts were also encountered.

Highlights were 8m at 1.69 grams per tonne gold from 65m; 9m at 2.23g/t gold from 21m; and 3m at 5.37g/t gold from 31m.

PNX said the results confirm the location and grade of the gold mineralisation in the resource estimate and provide quality assurance and quality control data to support upgrades to the indicated category.

Surface mapping and sampling of outcrop approximately 200m from the company’s last drilling has been completed with results pending.

Fountain Head project

The Glencoe deposit forms part of PNX’s development plans for the Fountain Head gold and Hayes Creek gold-silver zinc projects.

The deposit sits 3km north of the project and was acquired in April for $1.87 million from private company Ausgold Trading Pty Ltd.

PNX has paid $1.17 million to date with the balance due by year end.

Managing director James Fox said he was pleased with the success of the maiden program at Glencoe.

“Several high-grade, near-surface intersections were returned, the strike length has been extended beyond the current resource estimate, and the deposit scale has been increased,” he said.

“Further drilling will be conducted over the coming months as we look to upgrade the confidence level for a portion of the current deposit to the indicated category.”

New drilling program

In October, PNX will commence a 2,000m drilling program at Glencoe to follow-up on maiden results.

The program will aim to extend the new gold zones and target additional untested anomalies from historic exploration and recent surface sampling.

Three diamond drill holes for approximately 360m will be included in the program, focusing on oxide and transitional zones of the deposit to provide rock density data, structural information and material for confirmatory geotechnical and metallurgical test work.

Prior to drilling, downhole optical imaging and density measurements will be completed on 16 of the most recent holes to assist with interpretation of the gold lodes, improve the overall geological model, and provide data to upgrade resource confidence.

Environmental studies will be ongoing in parallel to the exploration.

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