With the Company’s 2014 project acquisition in the Northern Territory, PNX Metals Limited now has a significant base and precious metals tenement portfolio in the Northern Territory, in particular at Hayes Creek, and in South Australia. The Company aims to be a sustainable, profitable gold and base metals producer and successful explorer in the Pine Creek region of the Northern Territory.
The Company has been renamed PNX Metals Limited, following approval by shareholders at the 2015 AGM and the updating of the company name with ASIC. PNX Metals Limited was previously Phoenix Copper Limited.
A Scoping Study over the Hayes Creek Project was completed in March 2016 showing a robust economic base case that confirms the potential for the Project to become an economically viable operation. The Study indicates the Project to be profitable across the commodity cycle and capable of producing zinc concentrate and gold-silver doré from both open-pit and underground operations. Opportunities for Project enhancement which will be addressed in a Pre-Feasibility Study include increasing the resource base through near mine and regional exploration, increasing metal recoveries through optimisation of the mineral processing route, and improving capital and operating cost efficiencies.
The Company is also conducting greenfields and brownfields exploration on the 19 exploration licences and 4 mineral leases on which it is earning up to a 90% interest via its strategic joint venture with gold producer Newmarket Gold Inc. (previously Crocodile Gold).
The Company has used an Induced Polarisation (IP) geophysical survey to define up to six target areas immediately along strike to the north and south of the historic Monster Mine.
High-grade, near-surface copper sulphide mineralisation was intercepted at the Eagle Prospect (one of the northern IP targets) in an initial 2012 diamond drilling program. A soils anomaly was defined at the Condor prospect coincident with an IP target, immediately along strike and to the south of the Monster Mine. This target has not yet been drill tested.
The area remains prospective for copper mineralisation, and also for gold and other base metals in the broader Burra region. Any exploration work in this area will be prioritised against the Company’s other projects.
The Company’s four tenements comprising an area of approximately 1200 km² are directly adjacent Rex Minerals’ Hillside deposit and are part of the Olympic Domain. An airborne EM survey was completed in 2011 generating valuable information to assist with exploration in the region. Subsequent to the survey, in 2013 an aircore and reverse circulation drill program was completed over highly prospective iron ore copper-gold targets, which have the potential to host Iron Oxide Copper Gold style mineral deposits. The results from the drilling support the Company’s view of the resource potential in the area. The Company is currently seeking a joint venture partner to assist with funding further exploration drilling.