PNX Metals (ASX:PNX) has identified the potential for significant extensions to its Glencoe gold depositin the NT, with high-grade gold returned up to 400m east of the deposit in recent surface rock chip sampling.
Sampling returned high grades of up to 6.02g/t, while grades of up to 11.06g/t were reported from within the historic Glencoe open pits.
Managing Director, James Fox, said the new gold mineralisation is interpreted to lie within a regional-scale shear zone that can be traced for over 1km to the southeast of the Glencoe gold deposit.
Glencoe is located on a granted Mineral Lease approximately 170 km south of Darwin and 3km north of PNX’s Fountain Head Gold Project in the Pine Creek region of the Northern Territory.
A total of 54 rock chip samples were collected from a broad area extending up to 400m east of the existing Glencoe deposit and 200m east of the RC drilling program recently completed by PNX.
Numerous high-grade gold values in excess of 1.0g/t were returned from the newly defined ‘Eastern Zone’, including 6.02g/t Au (TGU5467), 4.04g/t Au (TGU5459) and 3.05g/t Au (TGU5486). These samples were collected from outcropping quartz-sulphide veined and altered mafic rocks that are largely obscured by a veneer of transported soil cover.
The ‘Eastern Zone’ extensional area, supported by recently reprocessed magnetic data, is interpreted to lie within a regional-scale shear zone which can be traced for over 1km to the southeast of the Glencoe gold deposit.
Significantly, this structure remains largely unexplored beyond limited shallow (average depth ~4 metres) wide spaced (400m x 200m) historic RAB drilling. The presence of transported soil cover would have also rendered surface soil sampling ineffective.
The newly identified surface mineralisation and underlying shear zone represent a potentially significant extension to the Glencoe deposit. At the time of writing, further mapping and rock chip sampling along its strike are ongoing.
Geological mapping and face sampling within the historic Glencoe open pits has also been completed and has strengthened PNX’s understanding of the deposit’s geological setting, with several high-grade rock chip results, including 11.06g/t Au (TGU5493) from the furthest extent of the west pit wall, and 9.52g/t Au (TGU5497).
A further 2,000m of RC drilling is planned to commence next month to test the eastern extensions and to upgrade a portion of the existing Glencoe Mineral Resource Estimate (MRE) to the Indicated category.
The Glencoe MRE extends from surface to 120m vertical depth, comprises a number of discrete lodes over a strike length of greater than 1.5km, and remains open in all directions.
These new high-grade rock chip results support our view that the Glencoe gold deposit extends well beyond the limits of historic drilling,” Mr Fox said.
“The focus of our ongoing work at Glencoe will be to test the significance of the eastern extension as well as upgrading a portion of the existing MRE to the Indicated category. We look forward to updating the market as further results become available.”
Additional Work at Glencoe
Downhole optical imaging and density measurements have been completed on 20 of the recently drilled RC holes.
The data are being assessed and will assist with the structural interpretation of the gold lodes, improve the gross geological model of the deposit, and provide further rock density data necessary to upgrade resource confidence.
Three diamond drill holes for approximately 360 m are also planned and will focus on the Oxide and Transitional zones of the deposit and will be used to provide further rock density data and structural information, and material for confirmatory geotechnical and metallurgical test work.
About the Glencoe Development Opportunity
Glencoe represents a ‘bolt-on’ asset that has significantly expanded the proposed Fountain Head development.
Under the Sale and Purchase Agreement (SPA) (executed 27 April 2021) with private company, Ausgold Trading Pty Ltd, PNX has acquired Glencoe for a total consideration of $1.875 million; of which $1.175 million has been paid to date with the balance due by 31 December 2021.
The company has received unconditional approval from the Foreign Investment Review Board for the acquisition.
