PNX completes drilling program, aiming to complete PFS by mid-2017
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
PNX Metals (ASX:PNX) recently received final assays from infill drilling from its high-grade Iron Blow deposit located at the Hayes Creek project in the Northern Territory. The 30-hole drill program aimed to upgrade geological confidence at the Iron Blow VMS deposit, which along with the Mt Bonnie deposit, comprises the Hayes Creek zinc-gold-silver project in the Pine Creek region of the Northern Territory.
Some outstanding drill results were returned including 7.5 metres grading 19.1% zinc equivalent, including high grade silver mineralisation. There were also some thick intersections which contained quality gold grades. One such intersection was 29.5 metres grading 4.3% zinc equivalent which included gold grading 2.4 grams per tonne.
In commenting on these recent developments, PNX Managing Director James Fox said, “The aim of the drill program was to provide sufficient geological information to upgrade the majority of the existing resource estimate to the (higher confidence) Indicated category for inclusion in the Hayes Creek PFS, while also identifying opportunities for optimising the mine plan and future resource growth.”
Of course this is an early stage play and investors should seek professional financial advice if considering this stock for their portfolio.
As shown below, the Hayes Creek Project, containing the Iron Blow and Mt Bonnie zinc-gold-silver VMS deposits is located in a favourable mining jurisdiction in the Pine Creek region of Northern Territory, less than two hours by road from Darwin.
Platform provided for strong cash generating project at Hayes Creek
With the drill program now completed, PNX will be able to upgrade the resource with the aim of converting the majority of the existing resource estimate to the Indicated category. Management said completion of the resource estimate is expected in April, a development that could be a share price catalyst.
A detailed mining model will now also be generated for inclusion in the Preliminary Feasibility Study (PFS), expanding on the Scoping Study completed in March 2016, which found that mining and processing ore derived from the proposed open-pit and underground operations at Hayes Creek would generate strong financial returns for the Company.
The PFS is expected to be completed by mid-2017, and the development strategy includes the use of existing infrastructure, designed to boost economics and reduce project risk.
Importantly, assay results continue to delineate two main massive sulphide zones, an eastern hanging-wall lode defined by significant zinc-gold-silver mineralisation, and underneath, a broader western footwall lode stop
Management said technical difficulties in the laboratory associated with power outages had resulted in longer than expected turnaround times in terms of receiving assay results, but stressed that this is not expected to impact timing of the fully funded Hayes Creek PFS study which is due for completion mid-2017.
With the ground work having been done to achieve this goal, PNX will now look to incorporate lower cost open-pit mining methods along with the recently updated Mt Bonnie Resource Estimate, and new metallurgical information in the mining optimisation studies to be included in the PFS.
General Information Only
This material has been prepared by Jason Price. Jason Price is an authorised representative (AR 000296877) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C), and a Director of S3 Consortium Pty Ltd (trading as StocksDigital).
This material is general advice only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with personal financial or tax advice and does not take into account your personal objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, Jason Price, StocksDigital, any of their related body corporates or any other person. To the maximum extent possible, 62C, Jason Price, StocksDigital, their related body corporates or any other person do not accept any liability for any statement in this material.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
