PNX Metals (ASX: PNX) has discovered high-grade gold at its Fountain Head project in the Northern Territory, with drilling at the Banner prospect pulling up to 215 grams per gold.
The discovery was made across a 500m anomaly that returned 1g/t and higher from soil samples.
PNX followed up the anomaly with 10 reverse circulation holes, with high-grade gold unearthed in three of the seven holes drilled. Assays for the final three are pending and anticipated to be received shortly.
The best intersection from the program was 6m at 39.5g/t, which included the 1m interval of 215g/t from 54m.
Other intersections were 1m at 5.92g/t gold from 42m, and 2m at 5.85g/t gold from 50m.
“We are very excited to have discovered high-grade gold near-surface in the first round of drilling at the Banner prospect where the objective of the shallow reverse circulation program was to identify the source of a consistent 500m 1g/t gold-in-soils anomaly,” PNX managing director James Fox said.
He added the company would begin follow-up drilling “shortly” to advance the discovery, with the diamond drill rig that’s at the Fountain Head target to be moved to Banner in the next few weeks.
A single diamond hole has been planned at Banner, which PNX hopes will offer up more information to help it plan the larger follow-up program.
Today’s news follows PNX’s announcement yesterday that the mineralisation at Tally Ho has been extended at least 100m along strike.
Drilling at Tally Ho returned 5m at 3.96g/t gold from 107m, including a 2m at 9.17g/t gold from 110m.
Meanwhile, drilling at Fountain Head revealed 16m at 1.37g/t from surface including 1m at 8.39g/t gold from 5m, and 2m at 4.04g/t from 21m.
“The recent excellent assay results at the Fountain Head, Tally Ho and Banner prospects highlight the potential for this area to host a sizeable gold system, and we look forward to accelerating exploration to expand this new opportunity,” Mr Fox said.
Fountain Head project
The Fountain Head project is about 15km from PNX’s Hayes Creek zinc-gold-silver project.
In addition to hosting the gold prospects, Fountain Head also offers PNX a site for its proposed Hayes Creek processing plant.
PNX’s strategy is to firm up additional economic mineralisation at Fountain Head that could potentially complement the proposed Hayes Creek mine or become a standalone operation.
By late afternoon trade, PNX’s share price had gained more than 14% to reach $0.008.