TIDMPXC
RNS Number : 3384F
Phoenix Copper Limited
16 November 2020
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
16 November 2020
Phoenix Copper Limited
('Phoenix' or the 'Company')
Red Star Update
Structural geology report confirms the significant potential at
the Red Star silver deposit
& Total Voting Rights
Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLF), the AIM quoted,
North American-focused base and precious metals exploration and
development company, is pleased to announce the publication of the
independent report "Geologic Mapping and Structural Analysis in the
North Pit Region, Mackay Mining District" (the "Report") focusing
on the Red Star silver project ("Red Star") by David W. Rodgers,
Ph.D., Consultant Structural Geologist to Phoenix.
Highlights:
- The Report confirms the potential of further high-grade silver and lead at Red Star
- The Report confirms the likely extension of Red Star through
to the historically mined high grade Horseshoe and White Knob claim
blocks
- The Report highlights the association of high-grade silver
mineralisation with the magnetite-bearing skarn formation, thus
allowing a magnetic geophysical survey to optimise an ongoing
targeted drilling programme
Dr. Rodgers is familiar with the geology of the Company's Empire
Mine property and the local region. He was the structural geology
professor in the Idaho State University (ISU) Department of Geology
from 1985 to 2010, Associate Dean of ISU College of Science and
Research from 2010-2018, and is currently the Associate
Vice-President for Research at ISU. During Dr. Rodgers' tenure as a
structural geology professor, he mapped extensively in the Central
Idaho area, including the more distal extents of the same rock
formations present at the Company's Empire Mine.
Ryan McDermott, Chief Executive Officer, said, "I am pleased to
provide this update for our Red Star project and present the
findings of Dr. Rodgers' report, specifically as it is related to
future exploration and drill hole targeting. We are particularly
excited by the similarity recognised between Red Star and the
historically mined Horseshoe and White Knob claim blocks, and the
potential of an extension between the two. The historically mined
high grade Horseshoe and White Knob claim blocks produced average
grades of 204 g/t silver, 19% lead, 6.5% zinc and 0.73% copper.
"In 2018, Phoenix collected rock chip and channel samples from
the Horseshoe Mine claim block. The results of the sampling
programme were reported in October 2018 and showed results as high
as 9.19% copper, 580 g/tonne silver, and 20% lead. This clearly
opens up another significant prospect within the Empire ore system.
Whilst we construct the Empire open pit copper / gold project we
will continue to actively explore the Red Star and related area,
with a view to early development of this exciting opportunity.
"Following our recent 10-hole drilling programme at Red Star,
the Phoenix team evaluated the data from that programme, as well as
the existing data from previous work. The drilling results from
2018 and 2020 were very promising, with silver grades as high as
1,100 g/tonne (32 oz/t) and lead grades above 21%. However, we
recognised the geological and mineralogical complexity of the
project area, coupled with the lack of discernible outcrop, which
created challenges for effectively targeting additional core holes.
As a result, we engaged Dr. David W. Rodgers, a Ph.D. structural
geologist and Idaho State University geology professor, to complete
high-resolution mapping of the project area and to assess the
mineralogical characteristics of the deposit. Dr. Rodgers completed
his report, entitled "Geologic Mapping and Structural Analysis in
the North Pit Region, Mackay Mining District" on 9 November 2020.
His report can be found on the Company website at
www.phoenixcopperlimited.com in the "Reports" section.
"Following detailed surface mapping of the Red Star project
area, which included some work southward toward the Empire Mine and
northward toward the historic White Knob and Horseshoe Mines, as
well as detailed analysis of the Red Star core and drill cuttings,
Dr. Rodgers concluded that higher grade silver and lead
mineralisation occurs primarily in the contact region between the
Mackay Granite formation and the White Knob limestone formation.
This is important in that mineralisation does not occur between
these two formations elsewhere in the main Empire Mine area.
"Furthermore, Dr. Rodgers concluded that the higher grade silver
mineralisation was focused in areas within the magnetite-bearing
skarn that had been subjected to a superimposed event, possibly
highly acidic, wherein the later-stage silver-bearing fluids
leached the magnetite skarn. Because the silver mineralisation only
occurs in iron-rich portions of the skarn, which are dominated by
magnetite, then those areas near the contact of Mackay Granite and
White Knob limestone with magnetite development are thought to be
favorable targets for higher grade silver.
"Because the lack of discernible outcrop at Red Star makes it
difficult to determine the underlying geology, Dr. Rodgers has
recommended the use of ground magnetic surveying, coupled with
geologic mapping, to better define future drilling targets. The
Company will therefore be scheduling a ground magnetics survey at
the Red Star area as soon as weather and ground conditions permit,
in order to optimize the next phase of the drilling programme."
Red Star - Silver and Lead Resource
Red Star is located approximately 330 metres north-northwest of
the Empire open pit resource area within the Empire patented claim
boundary. This boundary is contiguous with the Horseshoe Block to
the north and west. A map showing the area can be found on the
Company website at www.phoenixcopperlimited.com in the "News"
section.
The Red Star Zone was discovered during field mapping and
reconnaissance of the northern patented claim boundary and adjacent
Horseshoe Block. Channel samples were collected from the Red Star
outcrop itself and results reported by the Company in October 2018.
Three RC drill holes targeting the area at depth were completed and
assay results were published in December 2018. In May 2019, Hard
Rock Consulting estimated a maiden inferred resource at Red Star of
103,000 tonnes grading 173.4 g/t silver, 0.85 g/t gold, and 3.85%
lead, with minor copper and zinc. In 2020, 10 HQ-core holes were
completed at Red Star. Core holes RSD20-01 through RSD20-04, and
RSD20-06, returned assays of 116.9 g/tonne (3.76 oz/t) to 359.8
g/tonne (11.57 oz/t) silver and lead values from 1.17% to 7.79%,
respectively.
Qualified Person
The information in this announcement has been reviewed by Roger
Turner A.C.S.M., M.Sc., M.I.M.M.M., C.Eng., Chief Technical Officer
and Director of the Company. Mr Turner is a graduate mining
engineer from the Camborne School of Mines with an MSc in Economic
Geology from Leicester University with more than 40 years'
experience in mine development, construction and operation and is a
qualified person under the AIM Rules. Mr Turner consents to the
inclusion of the information in the form and context in which they
appear.
Environmental, Social, and Corporate Governance
Phoenix is committed to meeting and exceeding the environmental
standards required by law as a core value of the Company. The
baseline environmental data collected to date will be used for
furthering the permitting process, but as importantly, will be used
as the building blocks for the Company's future Environmental,
Social, and Corporate Governance (ESG) platform.
Update to Total Voting Rights
Further to the Company's Block Admission announcement on 6
October 2020, a further 127,258 ordinary shares of no par value
have been issued as a result of ongoing warrant exercises. The
total number of ordinary shares of no par value in the Company as
at the date of this announcement is therefore 63,306,747 shares.
For the purposes of the Disclosure Guidance and Transparency Rules,
shareholders may use this figure as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change to their interest in, the
issued share capital of the Company. No ordinary shares are held in
Treasury.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Contacts
For further information please visit
www.phoenixcopperlimited.com or contact:
Phoenix Copper Ryan McDermott Tel: +1 208 954
Limited Dennis Thomas 7039
Richard Wilkins Tel: +44 7827
290 849
Tel: +44 7590
216 657
SP Angel David Hignell / Caroline Rowe Tel: +44 20 3470
(Nominated Adviser) 0470
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Brandon Hill Capital Jonathan Evans / Oliver Stansfield Tel: +44 20 3463
(Joint Broker) 5000
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WH Ireland (Joint Harry Ansell / Adam Pollock Tel: +44 207
Broker) / Katy Mitchell 2201666
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Blytheweigh Tim Blythe / Megan Ray Tel: +44 20 7138
(Financial PR) 3204
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Notes
Phoenix Copper Limited is a North American focused, base and
precious metal explorer and developer, which has carried out a
drilling programme and generated a copper, gold, silver and zinc
resource on which it is carrying out a feasibility study to bring
the historically producing Empire Mine in Idaho, USA, back into
production. It is also evaluating the silver and gold resources
around three other past producing mines within the 23 km (2) Empire
claims block as well as cobalt in two claims blocks north of Empire
in Idaho.
Phoenix's primary operations are focused near Mackay, Idaho in
the Alder Creek mining district. This district includes the
historical Empire, Horseshoe, White Knob and Blue Bird Mines, past
producers of copper, gold, silver, zinc, lead and tungsten from
underground mines in the first half of the twentieth century.
Additionally, the district includes Navarre Creek a Carlin-trend
gold discovery which hosts a 6.1 km gold strike length within a 9.8
km(2) area.
Phoenix acquired an 80% interest in the historical Empire Mine
property in 2017 and, based on a total of 320 drill holes, an oxide
resource was completed in late 2017. A NI 43-101 compliant PEA
(preliminary economic assessment) for an open pit heap leach
solvent extraction and electrowinning ("SX-EW") mine was completed
in April 2018. In 2018 a further 8,600 metres in 93 holes was
completed to upgrade the oxide resources, provide samples for
ongoing metallurgical test work, geotechnical and hydrological
studies and condemnation drilling for the heap leach pad site,
waste dump and plant site. An updated NI 43-101 compliant resource
was completed in early May 2020 and October 2020 for all metals.
Present contained metal in all NI 43-101 compliant categories of
resources, measured, indicated and inferred, stand at 355,523
ounces of gold, 129,641 tonnes of copper, 10,133,772 ounces of
silver and 58,440 tonnes of zinc.
Since acquiring the Empire project, Phoenix has increased the
claim area from 818 acres to 5,717 acres, mainly to the northwest
and west, and in so doing has increased the potential for
additional oxide and sulphide copper resources, as well as the
potential for stand-alone gold and silver resources, along a strike
length of approximately 5.4 km towards the other brownfield mines
of the Horseshoe, White Knob and Blue Bird Mines now within the
property boundary. In particular, a new discovery at Red Star, 330
metres north west of the Empire Mine proposed open pit, has
revealed sulphide ore and from three shallow exploration drill
holes a NI 43-101 compliant maiden resource of 1.6 million silver
equivalent ounces was reported.
At Empire, it is estimated that less than 1% of the potential
ore system has been explored to date and, accordingly, there is
significant opportunity to increase the resource through phased
exploration.
More details on the Company, its assets and its objectives can
be found on PXC's website at www. phoenixcopperlimited.com .
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