PNX Metals’ Share Price Up 16% on High Gold Values (ASX:PNX)
The share price of micro-cap base and precious metals explorer PNX Metals Ltd [ASX:PNX] is up today, thanks to solid rock chip samples from its Burnside project in the Northern Territory.
Like many Aussie gold stocks, PNX shares hit their high in the middle of the year, coinciding with the big run up in the price of gold.
The PNX share price has since sunk to 0.6 cents due to a recent capital raise, wiping away all gains made on the year.
At the time of writing, PNX shares are up 16.67% to trade at 0.7 cents per share.
Could an extension be on the cards for Burnside?
This morning, PNX announced the results of its rock chip sampling at the Fountain Head anticline and Western Arm North prospects at Burnside.
Burnside is located approximately 170 kilometres south of Darwin and surrounds PNX’s Fountain Head Gold Project, which hosts a JORC 2012 resource estimate of 2.94Mt at 1.7 grams of gold per tonne (g/t) for 156,000 ounces.
Surface rock chip sampling during a recent field assessment has returned high gold values from multiple priority targets, according to PNX.
A recent field assessment tracing the Fountain Head fold-hinge located an outcrop of quartz veining and shearing on the western limb of the anticline approximately 1,200 metres southeast of the Fountain Head gold deposit, sampling of which returned 1.17g/t gold.
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Gold mineralisation has now been identified over a considerable distance (> five kilometres) along the Fountain Head anticline.
Source: PNX Metals
At Western Arm North, surface rock chip sampling returned results ranging from 0.38g/t to 4.79g/t gold.
According to PNX, these results further support the interpretation that Western Arm North is the soil-covered northern continuation of the same faulted anticlinal fold hinge zone that hosts Kirkland Lake’s Ltd [ASX:KLG] Western Arm gold deposit.
KLG’s Western Arm deposit has an inferred resource of 1.79Mt at 1.4g/t gold for 86,000 contained ounces.
Other regional targets were also assessed, with strong rock chip gold results being returned from J25 (7.21g/t gold), Barton’s (0.42g/t and 1.21g/t gold) and Maria (up to 1.00g/t gold).
PNX says that today’s results will require drill testing to determine the significance of the anomalies at each location.
This will be completed in conjunction with the planned follow-up drilling around the Fountain Head deposit.
PNX is also set to grow its tenements around Fountain Head with the acquisition of the Glencoe tenement from Ausgold Ltd [ASX:AUC] for $1.875 million.
Initial drilling is also planned for the Glencoe gold deposit, with work scheduled to commence in early 2021 subject to the Northern Territory’s wet season accessibility.
As for the share price, PNX has plenty to sink its teeth into currently. And with the gold price steadying, we could see PNX shares begin to rally next year if drilling turns up some interesting results.
We could also see a lift from macroeconomic factors, like Australia overtaking China as the leader in gold exploration, mining and production. In her latest report, gold expert Shae Russell breaks down what Australia becoming the new gold ‘epicentre’ means for gold and Aussie gold stocks like AusMex Mining. Click here to download the free report.
For The Daily Reckoning Australia