PNX Metals has successfully shifted a large portion of the gold resource at its Glencoe deposit into the high confidence measured and indicated categories, and at the same time identified several additional promising drill targets with the potential to considerably grow the resource.

PNX Metals (ASX:PNX) has delivered an updated resource for the Glencoe gold deposit that places 77.4% of the contained gold in the measured and indicated resource categories.

The total resource stands at 2.1 million tonnes at 1.2 grams per tonne (g/t) for 79,000oz of gold. Of that, 427,000 tonnes are now the highest confidence measured category and a further 1.2 million tonnes have moved up into the indicated category.

Mineral resources are categorised in order of increasing geological confidence from inferred to indicated to measured.

A measured resource represents the highest level of geologic knowledge and confidence, and an indicated resource means a company has sufficient information on geology and grade continuity to support mine planning.

The resource, which remains open in all directions, extends from surface to 120m vertical depth and comprises discrete lodes over a strike length of about 1.5km.

Managing director James Fox said the updated resource at Glencoe would assist with advancing PNX’s Northern Territory gold and base metals development strategy.

“A significant improvement in the geological classification, with the majority now reporting to the high confidence measured and indicated categories, and an improved geological model has resulted in a more robust mineral resource, and highlighted numerous open areas to be drill tested, all with potential to considerably expand the mineralised footprint,” he said.

Glencoe is a critical part of PNX’s integrated gold, silver and zinc development strategy which is proposing to mine and process ore from four 100%-owned discrete deposits located on granted mining licences in the Pine Creek region.

PNX is positioning its Fountain Head project as a processing hub for mineral deposits in the region. Glencoe, which is located just 3km north of Fountain Head, was acquired in late 2020 as part of the company’s goal to build scale in the Northern Territory.

Total project resources at the Hayes Creek zinc-gold-silver and Fountain Head/Glencoe gold deposits now contain approximately 472,700oz gold, 16.2Moz silver, 177kt zinc, 37kt lead and 10kt copper.

The Fountain Head development is expected to deliver more than 30,000oz per year of gold at peak production and 157,600oz gold equivalent over its initial five-year life, but PNX is working hard to expand the scale of the gold portion of the project.

“A government co-funded drone-magnetic survey was recently completed over the Glencoe and Fountain Head gold deposits, and the Mt Bonnie and Iron Blow zinc-gold-silver deposits,” Fox said.

“The data is currently being processed and will be used to further refine new target areas for drill testing.”

Stage two will comprise the development of the Hayes Creek zinc-gold-silver project, which will double PNX’s production profile to almost 70,000oz gold equivalent per year.

PNX is very close to securing environmental approval for stage one which is expected to be received in October this year.

The company is also in the process of updating project capital and operating costs using a simplified flowsheet, which is expected to partly offset the cost inflation being experienced during construction for projects globally.




This article was developed in collaboration with PNX Metals, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.