The key to Hayes Creek is that it hosts Iron Blow and Mt Bonnie - which are both VMS deposits, located less than three kilometres from each other.
Adding intrigue is that VMS deposits are found in clusters, which is why PNX has recently been increasing exploration at greenfield targets.
Now with the acquisition of three mineral leases just a few kilometres from the Mt Bonnie deposit, PNX has delivered a boost to its already significant tenure in the region.
The Mineral Leases acquired are within the company's Burnside tenement package and are part of the Golden Dyke Dome, where a number of gold deposits were mined primarily for their oxide gold resources in the 1980's.
The largest of these pits was the Golden Dyke deposit, which produced 110,000 tonnes at 7.66g/t gold to a depth of about 150 metres.
It was the only open pit mined into primary mineralisation and ore was treated at the Mt Bonnie process plant.
Hayes Creek also benefits from close proximity to essential services and infrastructure, making for a potentially low-cost operation - which is an attractive mix for investors.
The acquisition provides an opportunity for the company to increase its current resource base of some 178,000 tonnes of zinc, 257,000 ounces of gold, 16.3 million ounces of silver, and 40,000 tonnes of lead.
Acquisition of leases
PNX has now agreed the purchase of three Mineral Leases in the Golden Dyke area, less than three kilometres to the west of the Hayes Creek project.
Leases consolidate the company's landholding in an area that has experienced considerable historic gold production.
Consideration is 1 million PNX shares and 2% NSR royalty on any gold and silver production.
The acquisition will be completed following satisfaction of conditions precedent, which require entry into two Deeds of Assignment regarding uranium exploration rights (all leases) and a royalty right (part of one lease) with third parties.
Approval for the transaction has been received from the Foreign Investment Review Board.
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