TIDMPXC
RNS Number : 4502Q
Phoenix Copper Limited
21 October 2019
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
21 October 2019
Phoenix Copper Limited (the "Company" or "Phoenix")
Nigel Maund Report highlights the polymetallic sulphide
potential at the Red Star and White Knob Mine Group and the
potential of the greater "Empire Mineralised System"
Phoenix Copper Limited (AIM: PXC, OTCQX: PGMLF), the AIM quoted
North American focused base and precious metals exploration and
development company, is pleased to announce the publication of a
further report by Nigel Maund, Consultant Economic Geologist to
Phoenix, on the geology and mineral potential of the Red Star and
White Knob Mine Group along strike to the north of the Company's
Empire Mine copper oxide deposit in Idaho USA.
This report supplements Maund's Empire Mine report published in
April 2019 and ties the geology and mineralisation of the Empire
deposit to the mineralisation identified along a 2.5 km trend north
through the Red Star resource and into the White Knob Mine Group
all as part of a larger molybdenum-tungsten porphyry known as the
"Empire Mineralised System".
The report can be found on the Company's website at
https://phoenixcopperlimited.com/reports.
The Company has also updated its corporate presentation which
can be found on its website at:
https://phoenixcopperlimited.com/pgm-media-and-presentations
The key findings of the report are as follows:
-- High-grade silver, lead, and zinc (plus copper and gold)
mineralisation extends on a northward strike from the main Empire
copper deposit at least 2.5 km and is focused on a series of
mineralised shears/faults, along which occur the Red Star resource
area, as well as the previously mined White Knob, Blue Bird, and
Horseshoe deposits. Another 30 unnamed historic underground mines
and prospects also occur along the same trend.
-- The silver, lead, zinc, copper and gold grades encountered in
the Company's 2018 drilling programme at Red Star are consistent
with the grades of the same metals found in channel samples taken
from the ribs of underground workings in the White Knob, Blue Bird,
Horseshoe mines 1 km to the north.
-- The average production grades from the White Knob Mine were
204 g/t silver, 19% lead, 6.5% zinc and 0.73% copper. By
comparison, the Red Star drilling results from 2018 drill hole
KX18-55 and KX18-57, showed 9.15m of 361 g/t silver, 9.9% lead and
0.8% zinc, and 15.24m of 160 g/t silver, 13.3% lead and 1.4% zinc,
respectively.
-- Mined widths of 2m to 16m in the historic White Knob, Blue
Bird, Horseshoe mines are similar to the mineralised drill hole
intercept widths encountered in the 2018 drilling programme, with
similar mineralogy.
-- Maund concludes that the potential mineralised system,
including the Empire, Red Star, and the White Knob Group, "has been
less than 1% exploited and explored" and "this northern part of the
system remains unexplored with indications of substantial ore
potential".
-- Maund also concludes that the mineralisation exhibited in the
Red Star and White Knob Group trend is consistent with a
molybdenum-tungsten porphyry system for which he attributed the
Empire copper deposit to the south.
Dennis Thomas, Chief Executive Officer, commented:
"It was a great pleasure to receive Nigel Maund's report on Red
Star, a discovery that we first reported to shareholders in early
2019. He confirms the continuity of the mineralisation northwards
from the Empire Mine through Red Star to the old mines of the White
Knob Group in the Horseshoe Block.
"The Red Star discovery is in primary high-grade silver/lead
sulphide mineralisation. After only three holes drilled we were
able to generate a maiden NI 43-101 compliant resource of some
103,500 tonnes, containing over half a million ounces of silver.
Our current view is that Red Star may develop into a high-grade
underground silver-lead mine with a modest level of capex.
"This is a strategically important development for the Company
as it enables us to move away from being a single asset company
with all the inherent risks that such companies face. As a junior
company we are focused on developing value by discovery and
development and we have known for a long time that we have an
abundance of exploration opportunities at the Empire Mine. We were
highly encouraged by the recent drilling at Red Star, which
returned 15.24m of 160 g/t silver, 13.3% lead and 1.4% zinc, to
evaluate the possibility of developing this project which would
enable us to broaden our risk by adding both silver and lead into
the commodity mix in addition to the copper.
"It is our intention to fast track the exploration of Red Star
by drilling and sampling along the trend in order to delineate
additional economic resources and reach a development decision by
the end of H2 2020, whilst also continuing our Bankable Feasibility
Study programme for the Empire Mine open pit copper oxide
project.
"Moreover, the Red Star project highlights the polymetallic
nature of the Empire Mine district which we have only begun to
explore beyond the initial open pit oxides. Red Star is part of the
sulphide mineralisation, which Nigel considers to be less than 1%
explored. Drilling into Red Star therefore commences the evaluation
of what we believe will develop into a world class sulphide
deposit.
"Finally, we are now undertaking some early exploration work at
our Navarre Creek discovery, a Carlin-style gold zone west of the
open pit oxide project."
Nigel Maund - Curriculum Vitae
Mr Maund is well versed in the geology and ore deposits at the
Company's Empire Mine area properties, having previously reported
on it in 2015 and in 2019. He visited Mackay in March 2019 to
analyse the Empire Mine and ore system in more detail, including a
review of the drill core and drill chips from the Company's 2017
and 2018 drilling campaigns, as well as earlier drilling
programmes, and followed up his April 2019 report with a further
site visit in September 2019 to specifically report on the Red Star
and Navarre Creek discoveries. Maund's reports on the Empire
deposit and the Red Star discovery and White Knob Mine Group can be
found on the Company's website at
https://phoenixcopperlimited.com/reports.
Nigel Maund BSc (Hons) Lond., MSc, DIC, MBA, F.Aus.IMM, F.AIG,
F.SEG, FGS, MMSA has 45 years industry experience as a Professional
Economic Geologist, whose consulting work has covered a broad range
of metalliferous mineral deposits globally. Amongst his
achievements, as Senior Geologist on the Olympic Dam project in
Australia for BP Minerals, he played a key role in the
understanding of the geology and mineralisation of the world class
copper/gold/uranium/ project. He has worked with RTZ Metals, Cliffs
Natural Resources and many junior sector exploration and mining
companies in both the discovery and evaluation phases of
significant projects, including the discovery of the Geita gold
project in Tanzania now owned and operated by AngloGold Ashanti,
and the evaluation and exploration of metalliferous projects in
France with BRGM. Much of his work has been on the detailed
early-stage evaluation of gold, base metal and tin & tungsten
skarns and in porphyry copper & molybdenum deposits in France,
Spain, Romania, the Philippines, Indonesia, Chile, Peru, Argentina,
the USA and Australia. Many of these projects have close geological
similarities to the Company's Empire Mine Ore system.
Under the guidelines established by the Australian Institution
of Mining & Metallurgy and Australasian Institution of
Geoscientists, he qualifies as a "Competent Person". He is a Fellow
of the Australian Institute of Mining & Metallurgy, the
American Society of Economic Geologists and the Geological Society
of London, as well as being a Member of the American Society of
Mineralogists. He also owns 51, 538 shares in Phoenix, representing
0.13% of the Company.
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 Limited Dennis Thomas / Richard Wilkins Tel: +44 7827
290 849 (Dennis)
/
+44 7590 216 657
(Richard)
SP Angel David Hignell / Caroline Rowe Tel: +44 20 3470
(Nominated Adviser 0470
and Joint Broker)
----------------------------------- ------------------
Brandon Hill Capital Jonathan Evans / Oliver Stansfield Tel: +44 20 3463
(Joint Broker) 5000
----------------------------------- ------------------
Medea Natural Resources Leonidas Howden / Fred White Tel: +44 20 7770
Ltd (Financial Advisor) 6926
----------------------------------- ------------------
Blytheweigh Tim Blythe / Camilla Horsfall Tel: +44 20 7138
(Financial PR) / Megan Ray 3204
----------------------------------- ------------------
Notes
Phoenix Copper Limited is a North American focused, base and
precious metal explorer and developer, which is fast-tracking the
historically-producing Empire Mine in Idaho, USA, back into
production, and exploring for cobalt in Idaho.
Phoenix's flagship project is a brownfield, past producing,
copper, gold, silver, zinc and tungsten underground mine, the
Empire Mine near Mackay in Idaho. Phoenix acquired an 80% interest
in the property in 2015. 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 June 2018 a drilling campaign consisting of 8,600
metres in 93 holes was started and completed in late 2018. This
programme was designed to upgrade and increase 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 2019 which resulted
in an increase from the PEA resources of 37% contained copper and
108% contained zinc. This resource has been used for this economic
analysis and will now be used as the basis for the Bankable
Feasibility Study ("BFS") scheduled for completion in 2020.
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; the current resources relate to the oxide resource
only, with the exception of the Red Star discovery "Inferred"
resource, which remains open along strike and does not include the
deeper, higher grade sulphides. In addition, Phoenix has increased
the claim area from 818 acres at the time of its acquisition to
5,717 acres, mainly to the northwest and west, and in so doing has
increased the potential for additional oxide and sulphide resources
by a total strike length of approximately 2,500 metres towards
another brownfield mine, the Horseshoe Mine, which is now within
the property boundary.
The Company also holds two prospective cobalt properties in
Idaho, US, which are located north of the Empire Mine. These are
situated close to the town of Cobalt and are close to projects
being advanced by Canadian junior miners, including eCobalt
Solutions and First Cobalt. Fieldwork, consisting of mapping and
sampling and locating drill holes for the 2019 drilling programme,
has been completed.
With a management team that has successfully constructed,
commissioned and operated mines and low risk, mining-friendly
jurisdictions with excellent infrastructure, Phoenix is looking to
fulfil its ambitions to become a mid-tier base metal, precious
metal and cobalt production company, offering exposure to high
value and high demand metals with compelling demand/supply
fundamentals.
More details on the Company, its assets and its objectives can
be found on PXC's website at www.phoenixcopperlimited.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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