PNX Metals Limited has competed the first stage of its farm-in agreement with Kirkland Lake Gold’s subsidiary Newmarket Gold NT Holdings, earning 51% ownership interest (excluding uranium) in 19 Exploration Licences (ELs) and 4 Mineral Leases (MLs) incorporating the Burnside, Moline and Chessman Projects in the NT.
PNX said the Burnside, Moline and Chessman Projects contain “exciting opportunities” for brownfield discoveries with undeveloped mineralisation and promising new conceptual targets.
It said that recent drilling at Moline had returned excellent initial drill results, confirming the area to be “highly prospective for gold.”
“Any regional exploration success could be incorporated with and enhance the Company’s Hayes Creek project, where a pre-feasibility study will be completed by mid-2017, or result in separate development project(s),” PNX told the ASX.
PNX Managing Director James Fox also announced that the company elected to proceed to the second stage of the farm-in with a view to increasing its interest in each of the tenements to 90% (excluding uranium) by spending a further $2 million by 15 December 2018.
He said that under the agreement with Newmarket, $0.5 million of expenditure on the Company’s Hayes Creek gold-silver zinc project will count towards the required $2 million.
“PNX is pleased to have completed the initial 51% farm-in to a substantial package of highly-prospective exploration ground surrounding our flagship Hayes Creek gold-silver-zinc project in the NT,” Mr Fox stated.
“With our well-supported and successful capital raising earlier this week and excellent assays results from initial Moline drilling, the Company is well positioned for follow-up during the 2017 dry-season. We have an excellent relationship with Newmarket and we look forward to continuing to work with them as we progress toward earning a 90% interest by December 2018.”