PNX Metals identifies more gold east of Glencoe deposit

PNX Metals ASX gold east Glencoe deposit
PNX Metals says the rock chip results indicate the potential for “significant” mineralised extensions to the Glencoe gold deposit.

Northern Territory explorer PNX Metals (ASX: PNX) has unearthed high-grade gold from a rock chip sampling program east of the existing Glencoe deposit within the Fountain Head gold project.

PNX says the results from the sampling highlight the potential for “significant” extensions to the gold deposit.

Rock chip samples were collected from outcropping quartz sulphide veined and altered mafic rocks that have been largely obscured by a veneer of transported soil cover. 

Samples were taken up to 400m east of Glencoe and returned better results of 6.02 grams per tonne gold, 4.04g/t gold and 3.05g/t gold. 

Glencoe is located on a granted mineral lease about 170km south of Darwin, and 3km north of PNX’s Fountain Head gold project, both within the Pine Creek region. 

In April the company announced at inferred resource at Glencoe of 2.1 million tonnes at 1.2g/t gold, for a contained 79,000oz. 

Aiming at upgrading mineral resource estimate 

As well as east of the deposit, historic mapping and sampling within the historic pits at Glencoe has strengthened PNX’s geological understanding, as well returning high grades, including 11.06g/t gold at the farthest end of the west pit and 9.52g/t gold from the south well of that pit.

PNX managing director James Fox says the ongoing work at Glencoe will test the significance of this new eastern extension.

“These new high-grade rock chip results support our view that the Glencoe gold deposit extends well beyond the limits of historic drilling,” he added.

The work on the eastern extension could allow an upgrading of a portion of the mineral resource estimate to indicated category. 

RC drilling to begin next month to test eastern extension

The gold mineralisation is associated with quartz sulphide veins which the company says have been interpreted to occur within the inferred shear zone that extends more than 10km east of the historic open pits.

“Surface mineralisation remains open along strike to the east and is untested by drilling with further rock chip sampling currently under way,” it adds.

This newly identified surface mineralisation and underlying shear zone represent a “potentially significant” extension to the Glencoe deposit, the company stated. 

A further 2,000m of reverse circulation drilling will begin in October to test the new area of interest. 

The Glencoe mineral resource estimate extends 120m from surface and includes several discrete lodes of strike zones that are greater than 1.5km in length — are is open in all directions.

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