PNX Metals discovers new untested gold lode position adjacent to Fountain Head Project

PNX Metals Ltd’s (ASX:PNX) comprehensive geological review of areas surrounding Fountain Head Gold Deposit in the Northern Territory has identified new exploration targets with the potential to host additional ‘near-mine’ resources. The data suggests that gold mineralisation at Fountain Head exists over a significant strike extent of more than 5 kilometres along an anticline fold hinge from Banner prospect in the west to Lady Josephine prospect in the southeast. Two main mineral lodes have been identified to date - the Fountain Head lode and the crosscutting N/NW trending Tally Ho lode - both of which remain open along strike and down dip and host the majority of the current mineral resource of 2.94 million tonnes at 1.7 g/t gold for 156,000 ounces. “Potential to add to resource base” PNX managing director James Fox said: “The newly identified target areas all lie within a 3-kilometre radius of Fountain Head and have the potential to significantly add to the existing resource base. “Banner and unexplored portions of the Glencoe-Tally Ho-Klondike Trend, including a potential new lode position at the NW Breccia, are key drill targets and a priority for follow-up. “We have a crew in the field now and I look forward to updating the market as new results come to hand.” Banner prospect At the Banner target, which lies around 600 metres northwest of the Fountain Head resource, wide-spaced drilling produced strong intercepts including:  6 metres at 39.5 g/t from 54 metres; 1 metre at 10.88 g/t from 28 metres; 19 metres at 2.7 g/t from 66 metres; 1 metre at 6.71 g/t from 46 metres; 1 metre at 5.43 g/t from 15 metres; 4 metres at 1.90 g/t from 11 metres; and 1 metre at 7.9 g/t from 45 metres. The company is confident that the Banner target represents a priority exploration target as the shallow bedrock anomalism and deeper drill intersections require further drill testing and assessment. Fountain Head South East At Fountain Head South East, around 450 metres southeast of the Fountain Head resource boundary, shallow historic RAB and vacuum drilling has defined multiple parallel north-south trending zones of strong bedrock gold anomalism within a quartz veined sequence of weathered sediments. The southern end of the target has not been tested by deeper drilling and remains open along strike. The RAB holes have an average depth of 10 metres and only a small portion of the western bedrock zone has been tested with deeper RC drilling which returned; 1-metre at 9.98 g/t from 37 metres; 1-metre at 93.7 g/t from 19 metres, and 1-metre at 22.7 g/t from 42 metres; 1-metre at 31.9 g/t from 31 metres; and 1-metre at 5.67 g/t from 92 metres. Fountain Head Mineral Resource, Banner and other surface gold anomalies, and key structural zones with new target areas highlighted. Tally Ho lode The high-grade Tally Ho lode, part of the Fountain Head mineral resource, lies within an interpreted N/NW trending structural zone that crosscuts the main Fountain Head anticline. This structural zone has been mapped from aeromagnetic data and field observations as trending from the Glencoe gold deposit (non-JORC resource estimate of 700,000 tonnes at 1.9 g/t for 43,000 ounces gold) around 3 kilometres to the north, through to the Klondike alluvial workings around 1.5 kilometres to the south. A potential new lode position immediately north of Fountain Head named NW Breccia also lies within this trend and remains largely untested. Notably the Glencoe-Tally Ho-Klondike structural zone has not been drill tested away from the immediate Fountain Head deposit which represents another priority target for follow-up along with the soil-covered western extension of the Fountain Head anticline which has never been explored. Next steps Field assessment of the Glencoe-Tally Ho-Klondike structural zone and the soil-covered western extension of the Fountain Head anticline is underway. Assay results from surface rock chip sampling over the broader Burnside area are expected by the end of November. Further drilling of the Banner zone is required and the company is planning to undertake a high-resolution aeromagnetic survey over the Fountain Head area to assist in locating follow-up drill holes. The company aims to undertake the airborne survey as quickly as possible and, weather permitting, this should occur prior to the end of the year.