PNX Metals (PNX) has kicked off drilling at its Glencoe gold deposit in the Northern Territory.
The 2000-metre reverse circulation drilling program has been designed to test three targets for extensions to surface mineralisation and gold-bearing quartz veins.
After improvements to the geological model, PNX noted numerous areas where potential exists for extensions to defined lodes.
Additionally, the company said a near-surface anomalism has outlined potential for “considerable” expansion to the mineralised footprint.
The project hosts a mineral resource estimate of 2.1 megatons at 1.2 grams per tonne gold for 79,000 ounces of gold. Of this, 77.4 per cent is in the measured and indicated categories.
The deposit comprises discreet lodes over a 1.5-kilometre strike and remains open in all directions.
If this next round of drilling is successful, Managing Director James Fox said it has the potential to “significantly” enhance project economics at the company’s proposed Fountain Head gold development which lies just three kilometres south.
PNX expects this drilling program to take around four weeks to complete, with assay due from mid-November.
Company shares were trading grey at 0.4 cents at 12:52 pm AEDT.
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