PERTH (miningweekly.com) – Metals explorer PNX Metals will acquire the Mt Porter gold deposit, in the Northern Territory, which is within trucking distance of its Fountain Head and Hayes Creek zinc/gold/silver development.
The company struck a deal with unlisted Ausgold Trading to acquire the Mt Porter deposit for A$1.05-million, with further staged payments required subject to certain resource scale and development hurdles being met.
This included A$1-million in either cash or PNX shares when a mineral resource of more than 100 000 oz is estimated, of which at least 50 000 oz is in the indicated category, and a further A$1-million in cash or shares on the production of 10 000 oz of gold.
As part of the transaction, PNX will also become liable for existing royalty obligations at Mt Porter, including a 1% net smelter return royalty to existing holders, capped at A$1-million, and a 1.25% net smelter royalty to an existing royalty holder.
“The Mt Porter gold deposit is near-surface, can be mined via openpit, and will integrate well with the proposed development plans at the Fountain Head gold and Hayes Creek zinc/gold/silver projects,” said PNX MD James Fox.
“The upfront cost of the gold ounces at Mt Porter is below the market average taking into account the high confidence, with 84% in the indicated category, and highly prospective exploration targets which exist along strike and have the potential to provide additional scale to future operations.”
Mt Porter is currently estimated to host 681 000 t, at 2.2 g/t gold for 48 200 oz of gold, with 84% of this resource classified as indicated.