Investor Presentaiton
Iron Blow and Mt Bonnie VMS Deposits¹ (2/2)
The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters
underpinning the estimates in the relevant market announcements referenced in this release continue to apply and have not materially changed.
Table 6: Total
Hayes Creek
JORC Classification
Tonnage
(kt)
Zn (%)
Pb (%)
Cu (%)
Ag (g/t)
Au (g/t)
ZnEq (%)
AuEq (g/t)
Mineral Resources
(Iron Blow+Mt
Total Indicated (84.7%)
3,455
4.88
1.01
0.27
137
1.88
11.99
9.29
Bonnie) by JORC
Total Inferred (15.3%)
622
1.39
0.37
0.10
52
1.46
5.03
3.91
Classification as at
03 May 2017
Total Indicated + Inferred Mineral Resource
Total Contained Metal (t)
4,077
4.35
0.91
0.25
124
1.81
10.93
8.47
177,200
37,000
10,050
16.2Moz
237.7koz
445,000+
1,110koz
Notes relating to Tables 4, 5 & 6
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) * Curecovery) -
(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
Zn
USD / t
Price
2,450
Recovery Mt Bonnie
Recovery Iron Blow
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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