PNX Metals intersects more near-surface mineralisation at Glencoe gold deposit

PNX Metals ASX Fountain Head gold Glencoe drilling Northern Territory
PNX Metals has confirmed a new narrow high-grade zone at Glencoe after drilling returned 2m at 6.77g/t gold.

Maiden drilling at the eastern extensional zone of PNX Metals’ (ASX: PNX) Glencoe deposit in the Northern Territory continues to intersect near-surface gold mineralisation beyond the existing mineral resource estimate.

Exploration has extended the strike a further 80m to the east of drilling completed in September and infill holes have demonstrated continuity of the mineralisation along strike for at least 450m east of the project’s North-Central historic pit.

Immediate extensions to near-surface gold were also delineated, extending the strike by more than 200m to the southeast of the inferred Glencoe resource estimate of 2.1 million tonnes grading 1.2 grams per tonne gold for 79,000 ounces.

High-grade, near surface gold in rock chips grading up to 6.02g/t have been previously reported in the area.

Gold-rich zones

Four gold-rich zones were identified between drill sections, which were located 130m apart.

In the mid-central zone, the extension of a narrow area of high-grade gold was confirmed by a drill hole, which unearthed 2m at 6.77g/t gold from 28m, situated 20m from previous drilling.

Best assays were 5m at 1.51g/t gold from 53m; 6m at 1.65g/t gold from 13m; 12m at 1.39g/t gold from 45m; and 3m at 2.20g/t gold from 69m; and 5m at 2.15g/t gold from 68m.

The new results are believed to greatly increase the prospective footprint at Glencoe where all previous exploration has focused on gold hosted in metasedimentary rock units.

Reverse circulation drilling will re-start this week with an additional 1,000m to be completed before the company commences three diamond drill holes in the new year.

Good development

Managing director James Fox said extensions to the resource estimate were a good development for Glencoe.

“We continue to increase the scale of this deposit and now have an entirely new host rock to explore,” he said.

“Further drilling will be conducted before year end as we look to extend the gold footprint and upgrade the confidence level for portions of the current deposit to the indicated category.”

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

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