(ASX: PNX METALS )
SP: 1.5c
MC: $ 14.6mil
Cash: approx. $3.5 mil
Shares: 978,737,423 Top 20: 52.8%
PNX Metals Limited is a Zinc, Gold, Silver explorer with their main projects in the Northern Territory.
The Company’s key focus is the development of its Hayes Creek zinc-gold-silver project, which contains the Iron Blow and Mt Bonnie volcanogenic massive sulphide deposits.
The project is located 170km south of Darwin.
A Preliminary-Feasibility Study (PFS) on the Project was completed in late June 2017.
The PFS confirms the potential for the Project to become a low-cost, high-margin Australian zinc and precious metals mine.
The Hayes Creek Project is located in a favourable mining jurisdiction where the development scenario considers and utilises existing infrastructure that includes rail, road, high voltage power lines and water, further enhancing project fundamentals and lowering development risks.
PNX are currently conducting a 4,000m drilling program support the Definitive Feasibility Study (DFS) and potentially extend the mine life.
Also in the previous quarter an agreement reached to convert existing convertible notes ($0.6 million) and a loan ($1.2 million) into PNX ordinary share averaging a Premium of 1.73 cents per share to current share price.
News catalyst for the current quarter;
Definitive Feasibility Study (DFS) - Hayes Creek
- 4,000 metre RC and diamond drill program at Hayes Creek commenced October for resource extension, mine planning, hydrology, metallurgical and waste characterisation purposes
- Environmental Impact Statement (EIS) related studies
- Metallurgical variability locked-cycle test work
- Finalisation of access to the Fountain Head mineral leases
Regional Exploration – Moline, Burnside & Chessman projects
- Ground IP over geochemical zinc anomalies at Moline to refine targets for drill testing
- Drill testing of priority targets
Zinc prices continuing to go up from speculation of China's new environmental crackdowns
from: LONDON, Oct 2 (Reuters)
- Zinc prices hit their highest in over 10 years on Monday as speculators bet environmental inspections would hit output in China and as one party kept a tight grip on London Metal Exchange inventories.
About 60 percent of lead-zinc mines were undergoing month-long shutdowns during environment inspections in Sichuan province.
“Further smelter closures during the upcoming winter months cannot be ruled out,” analyst Edward Meir at INTL FCStone said in a note.
“Prices have acted perkier ...(and) kept fund money pretty much committed to the long side.”
Zinc was the top performer on the LME on Monday with three month futures touching a high of $3,248 a tonne, the strongest since August 2007. It pared gains to $3,236 by the close, a gain of 2.3 percent.
