2016 Annual group report GR377 MLN 214, MLN 341, MLN 343 and MLN 349, Iron Blow, year ending 31 December 2016

Abstract

PNX Metals Ltd ('PNX') purchased the Iron Blow tenements in late 2014. This is the second of the Group Reports (GR377) pertaining to MLN's 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 2 km 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 2016 reporting period PNX, completed a scoping study, drilled 34 holes for 5563m, undertook further metallurgical testwork and commenced Prefeasibility engineering studies. Drilling was still underway at the end of 2016, with full results expected early in 2017. Results of the Scoping Study were positive and have encouraged the next stage of Prefeasibility work. Metallurgical testwork is also continuing and will be a big focus in 2017.