PNX Metals’ metallurgical optimisation delivers improvement in overall recoveries
PNX Metals (ASX:PNX) informed the market on Thursday that detailed PFS metallurgical test work and analysis relating to its Iron Blow and Mt Bonnie zinc-gold-silver VMS deposits (4.1 million tonnes grading 10.9% zinc equivalent) at its Hayes Creek project have been successfully completed.
The Hayes Creek project is located in the Pine Creek region of the Northern Territory. Updated mineral resources were reported in February and May for the Mt Bonnie and Iron Blow projects respectively.
The overall project resource hosts 84.7% in the indicated category, and expressed in gold terms equates to 1.1 million ounces of gold equivalent. Grade recovery curves have been developed for both zinc and the precious metals concentrates, indicating the potential for future optimisation of recoveries and/or grade with gold being a particular focus.
Completion of the test work and analysis is an important milestone as it demonstrated that the proposed flotation process plant is capable of recovering significant values from the Hayes Creek resource through the production of a zinc concentrate, as well as a precious metals concentrate.
The overall payable metals in concentrates based on standard commercial terms are at the upper end of expectations and have been confirmed as being readily saleable and in demand as high value products.
The potential for revenue to be derived from the lead contained in the precious metals concentrates, previously not considered in financial modelling, also provides additional revenue upside.
However it should be noted that any talk of revenue is speculative at this stage and investors should seek professional financial advice if considering this stock for their portfolio.
Highlighting the significance of this development, PNX Managing Director, James Fox said, “Recoveries to concentrates of the payable metals, in particular zinc, have exceeded our expectations, and with this information now at hand we look forward to finalising the Pre-feasibility Study (PFS) which is on schedule for completion by mid-2017”.
The PFS will expand on the Scoping Study completed in March 2016 which found that mining and processing ore derived from the proposed open pit and underground operations at Hayes Creek would generate strong financial returns. Consequently, the completion of the PFS will continue to de-risk and add value to the Hayes Creek project.