Fountain Head Gold Project Development Overview
Iron Blow and Mt Bonnie VMS deposits
Table 3: Total Hayes Creek Mineral Resources (Iron Blow + Mt Bonnie) by JORC Classification as at 03 May 2017
JORC Classification
Tonnage
(kt)
Cu
Zn (%)
Pb (%)
Ag (g/t)
Au (g/t)
ZnEq
AuEq (g/t)
(%)
(%)
Total Indicated (84.7%)
3,455
4.88
1.01
0.27
137
1.88
11.99
9.29
Total Inferred (15.3%)
622
1.39
0.37
0.10
52
1.46
5.03
3.91
Total Indicated + Inferred Mineral
4,077
4.35
0.91
0.25
124
1.81
10.93
8.47
Resource
Total Contained Metal (t)
177,200 37,000 10,050 16.2Moz
237.7koz 445,000t
1,110koz
Notes relating to Tables 1, 2 & 3
Due to effects of rounding, the total may not represent the sum of all components.
Metallurgical recoveries and metal prices have been applied in calculating zinc equivalent (ZnEq) and gold equivalent (AuEq) grades.
Iron Blow - A mineralisation envelope was interpreted for each of the two main lodes, the East Lode (Zn-Au-Ag-Pb) and West Lode (Zn-Au), and four subsidiary lodes with a 1 g/t
AuEq cut-off used to interpret and report these lodes.
Mt Bonnie - Zinc domains are reported above a cut-of grade of 1% Zn, gold domains are reported above a cut-off grade of 0.5 g/t Au and silver domains are reported above a
cut-off grade of 50 g/t Ag.
In order to assess the potential value of the total suite of minerals of economic interest, formulae were developed to calculate metal equivalency for the gold and zinc (see
below). Metal prices were derived from average consensus forecasts from external sources for the period 2017 through 2021 and are consistent with those used in PNX's
recently updated Mt Bonnie Mineral Resource Estimate.
Metallurgical recovery information was sourced from test work completed at the Iron Blow deposit, including historical test work. Mt Bonnie and Iron Blow have similar
mineralogical characteristics and are a similar style of deposit. In PNX's opinion all the metals used in the equivalence calculation have a reasonable potential to be recovered
and sold.
PNX has chosen to report both the ZnEq and AuEq grades as although individually zinc is the dominant metal by value, the precious metals are the dominant group by value and
will be recovered and sold separately to the zinc.
The formulae below were applied to the estimated constituents to derive the metal equivalent values:
Gold Equivalent (field = "AuEq") (g/t) = (Au grade (g/t) * (Au price per ounce/31.10348) * Au recovery) + (Ag grade (g/t) * (Ag price per ounce/31.10348) * Ag recovery) + (Cu
grade (%) * (Cu price per tonne/100) * Cu recovery) + (Pb grade (%) * (Pb price per tonne/100) * Pb recovery) + (Zn grade (%) * (Zn price per tonne/100) * Zn recovery) / (Au
price per ounce/31.10348 * Au recovery)
Zinc Equivalent (field = "ZnEq") (%) = (Au grade (g/t) * (Au price per ounce/31.10348) * Au recovery) + (Ag grade (g/t) * (Ag price per ounce/31.10348) * Ag recovery) + (Cu grade
(%) (Cu price per tonne/100) * Cu recovery) + (Pb grade (%) * (Pb price per tonne/100) * Pb recovery) + (Zn grade (%) * (Zn price per tonne/100) * Zn recovery) / (Zn price per
tonne/100 Zn recovery)
Metals
Unit
Price
Recovery
Mt Bonnie
Recovery
Iron Blow
Zn
USD/t
2,450
80%
80%
Pb
USD/t
2,100
60%
60%
Cu
USD/t
6,200
60%
60%
Ag
USD/troy ounce
20.50
70%
80%
Au
USD/troy ounce
1,350
55%
60%
PNZ
METALS
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