Name of the Project
Fountain Head gold and Hayes Creek gold/silver/zinc projects.

Location
Pine Creek region of the Northern Territory, in Australia.

Project Owner/s
PNX Metals.

Project Description
The results of a prefeasibility study (PFS) have supported the sequential development of PNX’s Fountain Head gold and Hayes Creek gold/silver/zinc projects over a ten-year mine life.

The PFS has confirmed the technical and economic viability of a staged development approach to build a low capital- and operating-cost gold plant and infrastructure capable of treating 750 000 t/y, with potential capacity of 900 000 t/y.

In Stage 1, near-surface oxide and free-milling gold and silver ore from three openpit mines at Fountain Head, Mt Bonnie and Glencoe and will be processed over an initial five-year period.

In Stage 2, subsequent to the treatment of the currently defined oxide gold and silver resources in Stage 1, the carbon-in-leach (CIL) plant will be upgraded to incorporate a sulphide flotation circuit capable of processing the Hayes Creek high-grade gold/silver/zinc massive sulphide ores into two valuable product streams – a zinc concentrate and a precious metals concentrate. The concentrates will be trucked to the Port of Darwin and then shipped to international markets for sale, and smelting and refining.

The PFS envisages initial gold mining and processing at Fountain Head (years 1 to 5) to be followed by gold/silver/zinc development at Hayes Creek (from Year 4).

The development will use the mined-out Fountain Head pit for tailings storage.

Life-of-mine production estimates with metals recovered to doré and concentrates are estimated at 250 500 oz of gold, 11.4-million ounces of silver and 116 300 t of zinc.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$171-million and an internal rate of return of 63% at a gold equivalent price of $1119/oz, with a payback of 18 months.

Capital Expenditure
Total upfront capital costs for Stage 1 are estimated at A$46-million for mine development, gold plant and infrastructure engineering, procurement and construction management costs, first fill, critical spares and working capital.

Stage 2 is estimated at A$58-million. The timing and quantum of Stage 2 capital is being assessed as there are several items, such as maintenance, administration, telecommunications, power, crushing and tailings, which will be used across both process streams. Considerable capital cost savings are expected to be realised upon completion of this work.

Planned Start/End Date
First gold production is expected from mid-2022, with opportunities to accelerate the timetable being assessed with stakeholders.

Latest Developments
The Fountain Head environmental-impact statement was submitted in June 2021, with government and environmental approvals expected later in the year.

Como Engineers has been contracted to deliver a design and construct proposal for the CIL plant for a fixed-duration, lump sum price, thereby removing a large portion of the project risk from PNX. This work will be completed over three months and will provide the PNX with a fixed-price design and construct contract proposal.

As the scope of work is further refined, consideration will be given to using second-hand equipment where possible and alternative equipment options to achieve further reductions in capital and operating costs.

Key Contracts, Suppliers and Consultants
Como Engineers (design and construct proposal for the CIL gold plant) and Metso Outotec (additional design information, thickening and filtration testwork).

Contact Details for Project Information
PNX Metals, tel +6 8 8364 3188 or email info@pnxmetals.com.au.