2018 Annual Group Report GR377 MLN 214, MLN 341, MLN 343 and MLN 349, Iron Blow, year ending 31 December 2018

Abstract

PNX Metals Ltd ('PNX') purchased the Iron Blow tenements in late 2014. This is the fourth 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 sulphide ore in the early 1900's of gold and a further 15,000t of oxide ore was treated in 1985-86. During the 2018 reporting period, PNX continued with a Definitive Feasibility Study, which included continuing hydrological, environmental and geochemical studies and metallurgical testwork. There was no field work undertaken during the reporting period. The final report for the hydrological studies undertaken at the end of 2017 was received during the reporting period and results are included in this report. Further work will include continued geochemical, metallurgical, engineering and environmental studies in support of the definitive feasibility study and environmental studies in support of project approval.