JOHANNESBURG (miningweekly.com) – Base and precious metals explorer PNX Metals reported on Wednesday that the technical components of the prefeasibility study (PFS) of the Hayes Creek zinc, gold and silver project in the Northern Territory was fully funded.
PNX had secured A$1.6-million through two agreements for the forward sale of silver from the project.
PNX MD James Fox said the forward sale mechanism was a beneficial funding route for shareholders.
“The forward sale at this early stage, of a small amount of the total silver that we believe may be produced from the Hayes Creek project, is an important step and allows us to continue to execute our development strategy.
“These agreements provide the funds to complete the technical components of the PFS without diluting shareholders. Progressing the PFS will further demonstrate and increase the value of the Hayes Creek project, which will, in turn, assist with future project funding,” said Fox.
The PFS, due for completion in mid-2017, would expand on the scoping study, which indicated that mining and processing ore derived from openpit and underground operations at Hayes Creek would generate strong financial returns for PNX.
PNX said Hayes Creek was located in a favourable mining jurisdiction in the Pine Creek region of Northern Territory, less than two hours by road from Darwin. The development strategy included the use of existing infrastructure, which would further boost the economics and reduce the risks of the Hayes Creek project.
Total estimated inferred and indicated mineral resources of 3.885-million tonnes grading 4.59% zinc, 2.05 g/t gold, 130 g/t silver, 1.05% lead and 0.3% copper were contained across two deposits, Iron Blow and Mt Bonnie, which were situated less than 3 km apart on granted mineral leases.