PNX Metals lodges EIS for proposed Fountain Head gold operation in the Northern Territory

PNX Metals (ASX: PNX) has lodged the environmental impact statement for its proposed mining operation at the Fountain Head gold project in the Northern Territory in what managing director James Fox says is an “important milestone”.

Mr Fox said the EIS was lodged with the NT’s Environmental Protection Authority and marks a “significant detailed body of work” to identify potential environmental impacts and risks and how to mitigate them.

The EIS is now open for public review and comment for the next eight weeks.

PNX has already received approval from the NT Department of Industry, Tourism and Trade for a variation to its proposed mine management plan that allows the dewatering of the Fountain Head pit.

Feasibility work advances

In parallel with the EIS, PNX has been working on the feasibility study for Fountain Head.

Mr Fox said this study was “nearing completion”.

“We look forward to finalising this study and continuing to accelerate the project development with first gold production targeted during 2022,” he added.

Fountain Head gold project

PNX acquired Fountain Head from Kirkland Lake Gold (ASX: KLA) in 2018. Gold was first discovered at the project in 1883 with GBS Gold Australia undertaking the most recent mining at the asset between 2007 and 2008.

In late April, PNX boosted the Fountain Head project with the acquisition of the Glencoe deposit 3km away.

Prior to acquiring Glencoe, Fountain Head’s resource was 2.94 million tonnes at 1.7 grams per tonne gold for 156,000 ounces.

The Glencoe deposit will add a further 2.1Mt at 1.2g/t gold for 79,000oz, with mineralisation remaining open in all directions.

PNX noted Glencore was also located on a granted mining lease.

Later this month, PNX is planning to drill Glencoe to test potential mineralised extensions to the resource.

Drilling is also planned at Fountain Head.

A development decision for Fountain Head is anticipated to be made later this year.