PNX Metals Limited (ASX: PNX) ('PNX', 'the Company') is pleased to advise that a comprehensive geological review of the areas surrounding the Fountain Head Gold Deposit ('Fountain Head' or 'Project') has identified new exploration targets with the potential to host additional 'near-mine' gold resources.

Managing Director's Comments

Commenting on the results, PNX Managing Director James Fox said: 'The newly identified target areas all lie within a 3-kilometre radius of Fountain Head and have the potential to significantly add to the existing resource base. Banner and unexplored portions of the Glencoe - Tally Ho - Klondike Trend, including a potential new lode position at the NW Breccia, are key drill targets and a priority for follow-up. We have a crew in the field now and I look forward to updating the market as new results come to hand'

The 100% owned Fountain Head project is located on granted Mineral Leases approximately 170km south of Darwin in the Pine Creek region of the Northern Territory.

New information derived from recent field mapping and assessment of geological data, suggests that gold mineralisation at Fountain Head exists over a significant strike extent (>5km); along an anticline fold hinge from 'Banner' in the west to the 'Lady Josephine' prospect in the south-east. Two main mineral lodes have been identified to date the Fountain Head lode and the crosscutting N/NW trending Tally Ho lode, both of which remain open along strike and down dip and host the majority of the current mineral resource of 2.94Mt at 1.7g/t Au for 156,000 oz Au.

At Fountain Head and other gold deposits in the region, gold mineralisation typically occurs at the intersection of N/NW trending structures and anticline fold hinges. The soil-covered portions of these intersection points along strike from known gold mineralisation at Fountain Head, have only been tested by limited shallow (average 6m depth) RAB and vacuum drilling and remain to be tested at depth. Historically the majority of exploration drilling on the Fountain Head Mineral Leases has been limited to outcropping areas.

At the Banner prospect, which is located approximately 600m north west of the Fountain Head resource, shallow historic RAB drilling has defined multiple bedrock gold anomalies over a 500m strike extent. Wide- spaced deeper drilling by PNX and others in this area produced several strong results (refer PNX ASX release 23 August 2018), including; 6m @ 39.5g/t gold from 54 metres in FHRC085, 1m @ 10.88g/t gold from 28 metres in PDH41, 19m @ 2.7g/t gold from 66 metres in PDH41, 1m @ 6.71g/t gold from 46 metres in PDH35, 1m @ 5.43 g/t gold from 15 metres in PDH36, 4m @ 1.90g/t gold from 11 metres in PDH38, 1m @ 7.9g/t gold from 45 metres in PDH42

Banner represents a priority exploration target as the shallow bedrock anomalism and deeper drill intersections require further drill testing and assessment.

At Fountain Head South East (located 450 metres south east of the Fountain Head resource boundary), shallow historic RAB and vacuum drilling has defined multiple parallel north-south trending zones of strong bedrock gold anomalism within a quartz veined sequence of weathered sediments. The southern end of the target has not been tested by deeper drilling and remains open along strike.

The RAB holes have an average depth of 10 metres and only a small portion of the western bedrock zone has been tested with deeper RC drilling which returned; 1m @ 9.98g/t gold from 37 metres in TERC007

1m @ 93.7g/t gold from 19 metres, and 1m @ 22.7g/t gold from 42 metres in TERC010

1m @ 31.9g/t gold from 31 metres in TERC011

1m @ 5.67g/t gold from 92 metres in TERC019

The high-grade Tally Ho lode, (part of the Fountain Head Mineral Resource), lies within an interpreted N/NW trending structural zone that crosscuts the main Fountain Head anticline. This structural zone has been mapped from aeromagnetic data and field observations as trending from the Glencoe gold deposit (Non-JORC Resource Estimate of 0.7Mt @ 1.9g/t gold for 43Koz gold1 ) 3km to the north, through to the Klondike alluvial workings 1.5km to the south. A potential new lode position immediately north of Fountain Head named 'NW Breccia' also lies within this trend and remains largely untested.

Importantly the Glencoe - Tally Ho - Klondike structural zone has not been drill tested away from the immediate Fountain Head deposit. The unexplored portions of this structure represent another priority target for follow-up along with the soil-covered western extension of the Fountain Head anticline which has never been explored.

Next Steps

Field assessment of the Glencoe - Tally Ho - Klondike structural zone and the soil-covered western extension of the Fountain Head anticline is currently underway. Assay results from surface rock chip sampling over the broader Burnside area (refer PNX ASX release 9 October 2020) are expected by the end of November.

Further drilling of the Banner zone is required and the Company is planning to undertake a high-resolution aeromagnetic survey over the Fountain Head area to assist in locating follow-up drillholes. The Company is currently working with geophysical contactors to undertake the airborne survey as quickly as possible and, weather permitting, this should occur prior to the end of the year.

Contact:

James Fox

Tel: +61 (0) 8 8364 3188

(C) 2020 Electronic News Publishing, source ENP Newswire