2015 Annual Group Report GR377 MLN 214, MLN 341, MLN 343 and MLN 349, Iron Blow, year ending 31 December 2015

Abstract

PNX Metals Ltd ('PNX') purchased the Iron Blow tenements from Newmarket Gold Inc in late 2014. This is the first of the Group Reports (GR377) pertaining to MLNs 214, 341, 343 and 349 collectively referred to as the 'Iron Blow leases'.'PNX are exploring the Iron Blow leases as part of the Hayes Creek Project, which also includes the Mount Bonnie leases located approximately 2km to the south. Iron Blow is a polymetallic Au, Zn, Ag, Pb and Cu deposit within the Pine Creek Orogen, discovered in the 1870's and mined sporadically up to 1985. It produced approximately 13,700t of oxide and sulfide ore in the early 1900's of gold and a further ~15,000t of oxide ore was treated in 1985-86.'During the reporting period, PNX completed surface pXRF geochemical sampling (114 measurements), fixed loop EM surveying (3.5 line kilometres), downhole EM surveying (IBDH023), RC drilling (3 holes for 240m) and metallurgical testwork. During the end of the reporting period, a Scoping Study commenced to investigate the possible development of the Hayes Creek Project. The results generated from metallurgical test work were positive. The high recovery and grades of zinc to a marketable and saleable concentrate product is considered the first step in extracting the valuable contained metals from the Iron Blow mineral deposit. Optimising the lead-copper stream to maximise gold and silver credits will be the focus of ongoing test work.