Fountain Head Gold Project Development

The Company is pleased to provide an update on the Fountain Head Gold Project development with a number of important milestones reached.

The Company has finalised the Sale and Purchase Agreement (SPA) with private company, Ausgold Trading Pty Ltd (“Ausgold”), to acquire the Glencoe Gold Deposit (Glencoe) for a total consideration of $1.875 million. A $0.5 million payment was made in Dec 20’ (fully refundable under certain conditions), with a further $0.675 million due upon execution of the SPA, and the balance to be paid by 31 December 2021 (refer to Key Terms in ASX announcement 10 December 2020 for further information). Ausgold is in the process of completing a ‘back-to-back’ arrangement with Ark Mines (administrators appointed) for Glencoe and other assets and PNX will execute the SPA on completion of this arrangement.

Managing Director’s Comments

PNX Managing Director James Fox said: “With the Sale and Purchase agreement for the Glencoe gold deposit nearing completion, the Company will move to finalise an updated Mineral Resource estimate. These gold resources will be incorporated into the Fountain Head mining development schedule that also includes Mt Bonnie gold and silver oxides. The Company has also submitted its mine management plan for dewatering of the Fountain Head pit and the Project EIS is expected to be completed in early May this year. Both of these documents are critical path items for the Government and Environmental approvals process. Como Engineers have also been engaged to provide guidance and input into the process plant design.”

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2021-03-04T09:15:38+09:30