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PNX Metals (ASX:PNX) has started drilling at Iron Blow after the NT’s (not so) wet season, while a mineral resource estimate is in the works for Fountain Head and an updated resource could come soon for Mt Bonnie.

The NT-focused miner told the market today that it had started drilling two diamond holes at Iron Blow, which is one of the deposits that makes up its Hayes Creek zinc-gold-silver project.

The drilling will test the eastern and western massive sulphide zones, with the samples then to be tested and analysed for a variety of things to feed into its Definitive Feasibility Study.

READ: A rosy silver price good news for PNX Metals

For example, the drill core will be tested via a flotation method to generate production information for smelters, and to add geotechnical data to its existing dataset so it can better design the proposed underground development outlined in its Pre-Feasibility Study.

PNX said the drilling would take about three weeks, with assays available afterward.

PNX also informed the market that it was getting closer to a new mineral resource estimate at Fountain Head and looking at the options for Hayes Creek in-pit tails and/or mining via an initial open pit.

The company also said it was working with CSA Global on a structural model that would help its understanding of Fountain Head along with Tally Ho and Banner. This in turn will help in planning future drilling and coming up with a mineral resource estimate.

PNX had more good resource estimate news, with the company telling shareholders that an updated mineral resource estimate for Mt Bonnie could be expected as soon as late April.

It’s also making good progress in getting its paperwork sorted, with it able to bring the NT Environmental Protection Agency and Department of Primary Industry and Resources onto site last week to help out with its Environmental Impact Statement — which is a key plank in the mine approvals process.

About PNX’s project

PNX is chasing zinc, gold, and silver at its Hayes Creek project in the NT — which is made up of several deposits including Iron Blow, Fountain Head, Tally Ho and Banner.

It produced a Pre-Feasibility Study for the project in 2017 — with the report saying a project producing an average of 18,300 tonnes of zinc, 14,700 ounces of gold and 1.4 million ounces of silver a year for 6.5 years could be on the cards.

The location of PNX's Hayes Creek project
The location of PNX’s Hayes Creek project

This would give Hayes Creek a net present value of $133 million using a 10 percent discount rate, with an internal rate of return of 73 percent and a payback period of just 15 months.

While those are positive numbers in their own right, PNX has been focused on developing mine life beyond 10 years with further drilling and development option studies.


This content is produced by Star Investing in commercial partnership with PNX Metals.  This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.