TIDMPXC
RNS Number : 6466A
Phoenix Copper Limited
23 January 2020
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
23 January 2020
Phoenix Copper Limited (the "Company" or "Phoenix")
Red Star vein strike length extended to 320-metres and open on
both ends
Two additional veins identified in road cuts
Phoenix Copper Ltd (AIM: PXC, OTCQX: PGMLF), the AIM quoted
North American focused base and precious metals exploration and
development company, is pleased to announce the results of ongoing
exploration at the Company's Red Star silver deposit, ("Red Star"
or the "Red Star Zone") adjacent to the Company's Empire copper
deposit in Idaho, USA.
Sampling Programme Highlights
-- Red Star vein now measured along 320m - open at both ends
-- Surface sampling results returned similar values to those
from the outcrop that forms the current maiden NI 43-101
Resource
-- Two additional veins have been exposed to the southeast
-- All of the new vein exposures are situated on the patented Empire property
-- These results will now be used to identify further drill targets
-- Objective to continue to update the Red Star Resource in
preparation for construction and production which is expected in
2021
-- A map showing the relevant Red Star vein system can be found
on the website version of this press release at
www.phoenixcopperlimited.com/news.
Ryan McDermott, Chief Executive Officer, commented:
"We are pleased with the latest Red Star results which indicate
an open-ended extension to the Red Star vein of 320-metres.
Additionally, during the Q4 2019 drill road-building work, two
additional veins were identified. These new veins are particularly
exciting as they may be indicative of a much larger, multi-vein
shear zone.
"During 2020 the Company plans to complete a drilling programme
on Red Star to generate a Measured and Indicated resource
sufficient to justify a small underground "adit" mine with a
flotation process plant to produce lead-silver, copper-gold and
zinc concentrates. The scale of operations will be in the region of
450 tonnes of ore a day or 155,000 tonnes a year.
"The Red Star discovery is a primary high-grade silver/lead
sulphide vein and has, after drilling only three holes, generated a
maiden NI 43-101 compliant resource of 103,500 tonnes, containing
half a million ounces of silver or a silver equivalent resource of
1.6 million ounces when gold, lead, copper and zinc values are
included. The value of the contained metal in the NI 43-101 Red
Star resource is US$260/tonne of ore at today's metal prices, or
US$40.3 million a year at a production rate of 155,000 tonnes of
ore a year. Capital costs are anticipated to be in the region of
US$30 million.
"Whilst our focus will be production from Red Star, anticipated
in 2021, the Company will also be evaluating alternatives for the
Empire Mine's open pit copper project in an attempt to improve on
the revenue, operating and capital cost estimates. The completion
of the feasibility study for this project will be accelerated in a
more attractive copper price environment.
"My predecessor, Dennis Thomas, has pointed out many times that
the polymetallic nature of the Empire System is largely untapped
and barely exploited or explored. These latest results are
certainly consistent with this view. I would like to take this
opportunity to personally thank Dennis for his service to the
Company as the former CEO and thank him in advance for his future
contribution as VP Investor Relations."
Red Star Zone
The Red Star Zone 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 Company's unpatented Horseshoe Block to the north and west.
The Red Star vein was discovered as a single vein outcrop
(discovery outcrop) in 2018 during a field mapping and
reconnaissance of the northern patented claim boundary and adjacent
Horseshoe Block. Geological and structural mapping in the vicinity
of the discovery outcrop indicated a N30E to N40E strike dipping 80
degrees north west. The lack of any surface outcropping, besides
the discovery outcrop, made it necessary to excavate road cuts
through the 2.0 metre to 5.0 metre thick overburden in order to
expose the uppermost sub-crop of the underlying rocks.
Following the 2018 discovery, the lone discovery outcrop was
sampled by cutting one continuous channel comprised of 12 times 1.5
metre long samples. The assay results were reported on 30 October
2018. Silver values in the individual channels ranged from 3.0 g/t
("grammes per tonne") to 78.5 g/t, lead ranged from 0.010% to
0.354% and zinc from 0.038% to 0.278%. Gold values were anomalous,
and manganese values were high at 0.379% to 0.837% compared to the
surrounding unmineralized rock (Table 1).
Apart from the discovery outcrop, no other significant outcrops
exist in the Red Star area. In October and November 2019
approximately 2,000 metres of drill access roads were constructed
throughout the Red Star Zone with the intent of crossing the vein
system and exposing sub-crops beneath the 2.0 metre to 5.0 metre
thick overburden along the anticipated strike of the vein. Visibly
mineralized sub-crops were exposed in seven road cuts. The geology
and geochemistry of the sub-crop intercepts were consistent with
the 2018 discovery outcrop channel with silver values ranging from
0.5 g/t to 18.5 g/t, lead ranging from 0.001% to 0.705%, and zinc
from 0.011% to 1.361%. Gold was anomalous, and manganese 0.031% to
0.769%. (Table 2). The wider variation in the recent channel
sampling results is likely to be due to the highly weathered and
broken sub-crop that was exposed in the road cuts.
The samples were analysed using 33-element ICP. Silver values
above 1 ppm ("parts per million"), and manganese values above 1,000
ppm were significant in the discovery outcrop channel sampling in
2018, as they were indicative of high grade silver and lead below,
as proven by subsequent drilling. The 2019 channel samples are
indicative of the same and demonstrate the potential for further
high grade silver and lead.
Table 1 - 2018 Discovery Outcrop Channel Samples
---------------------------------------------------------
ID Au g/t Ag g/t Cu % Mn % Pb % Zn %
------------ ----------- ------- ---------
22701 0.03 17.3 1.39 0.583 0.019 0.101
------------ ----------- ------- --------- ------ ------
22702 0.03 9.4 0.7 0.578 0.051 0.084
------------ ----------- ------- --------- ------ ------
22703 0.02 14.3 1.24 0.512 0.126 0.194
------------ ----------- ------- --------- ------ ------
22705 0.07 15.9 0.3 0.687 0.208 0.219
------------ ----------- ------- --------- ------ ------
22706 3.64 78.5 0.91 0.503 0.354 0.278
------------ ----------- ------- --------- ------ ------
22707 0.13 23.7 0.37 0.837 0.199 0.076
------------ ----------- ------- --------- ------ ------
22708 0.04 5.7 0.15 0.753 0.042 0.038
------------ ----------- ------- --------- ------ ------
22709 0.24 8.1 0.21 0.494 0.048 0.058
------------ ----------- ------- --------- ------ ------
22710 0.03 5.1 0.18 0.489 0.012 0.088
------------ ----------- ------- --------- ------ ------
22711 0.02 11 0.69 0.486 0.010 0.077
------------ ----------- ------- --------- ------ ------
22712 0.02 3 0.3 0.379 0.012 0.125
------------ ----------- ------- --------- ------ ------
22713 0.05 4.7 0.43 0.427 0.057 0.125
------------ ----------- ------- --------- ------ ------
Table 2 - 2019 Road Cut and Trench Samples
----------------------------------------------------
ID Au g/t Ag g/t Cu % Mn % Pb % Zn %
--------- --------- ------- -------
RS19-09 <0.005 0.8 0.001 0.048 0.004 0.011
--------- --------- ------- ------- ------ ------
RS19-10 <0.005 1.1 0.004 0.769 0.012 0.068
--------- --------- ------- ------- ------ ------
RS19-11 <0.005 0.5 0.003 0.158 0.004 0.025
--------- --------- ------- ------- ------ ------
RS19-12 <0.005 0.5 0.001 0.031 0.003 0.019
--------- --------- ------- ------- ------ ------
RS19-17 <0.005 1.2 0.001 0.529 0.036 0.056
--------- --------- ------- ------- ------ ------
RS19-22 0.008 0.7 0.003 0.079 0.007 0.008
--------- --------- ------- ------- ------ ------
RS19-27 0.06 3.4 0.128 0.129 0.007 0.068
--------- --------- ------- ------- ------ ------
RS19-28 <0.005 1.5 0.006 0.063 0.017 0.044
--------- --------- ------- ------- ------ ------
RS19-31 0.032 14.4 0.122 0.049 0.073 0.031
--------- --------- ------- ------- ------ ------
RS19-32 0.041 18.5 0.113 0.076 0.071 0.047
--------- --------- ------- ------- ------ ------
RS19-34 0.075 4.4 1.375 0.199 0.001 0.924
--------- --------- ------- ------- ------ ------
RS19-35 0.018 0.7 0.029 0.194 0.001 0.771
--------- --------- ------- ------- ------ ------
RS19-36 0.028 0.6 0.003 0.062 0.001 0.095
--------- --------- ------- ------- ------ ------
RS19-37 0.008 7 0.027 0.321 0.705 1.361
--------- --------- ------- ------- ------ ------
Three RC drill holes were completed in the area of the 2018
discovery outcrop, with two of the holes, KX18-55 and KX18-57,
intersecting the primary Red Star vein at initial depths of 15
metres and 30 metres, respectively. The assays for those drill
holes are shown in Tables 3 and 4, below.
Table 3 - High-grade Red Star Drill Hole Intercepts - Drill hole
KX18-55
ID Au g/t Ag g/t Cu % Mn % Pb % Zn %
23035 0.01 3.4 0.025 0.739 0.040 0.154
----------- ----------- --------- --------- -------- --------
23036 0.15 402 0.517 1.415 9.920 0.901
----------- ----------- --------- --------- -------- --------
23038 0.13 420 0.212 3.300 10.00 1.705
----------- ----------- --------- --------- -------- --------
23039 0.12 452 0.139 0.844 13.30 0.416
----------- ----------- --------- --------- -------- --------
23040 0.07 320 0.097 2.240 8.970 0.427
----------- ----------- --------- --------- -------- --------
23041 0.04 94.1 0.152 1.340 3.280 0.655
----------- ----------- --------- --------- -------- --------
23042 0.07 279 0.165 1.170 8.640 0.547
----------- ----------- --------- --------- -------- --------
23043 0.01 48.7 0.062 1.810 0.908 0.647
----------- ----------- --------- --------- -------- --------
23045 0.005 12.5 0.011 0.654 0.246 0.427
----------- ----------- --------- --------- -------- --------
23046 0.005 7.6 0.005 0.252 0.183 0.124
----------- ----------- --------- --------- -------- --------
23047 0.005 3.5 0.005 0.080 0.077 0.033
----------- ----------- --------- --------- -------- --------
Table 4 - High-grade Red Star Drill Hole Intercepts - Drill hole
KX18-57
ID Au g/t Ag g/t Cu % Mn % Pb % Zn %
0.005 14 0.148 0.363 0.072 0.129
----------- ----------- --------- --------- -------- --------
23112 0.05 25.7 0.069 3.370 0.868 1.950
----------- ----------- --------- --------- -------- --------
23113 0.03 25.3 0.071 3.380 0.730 1.810
----------- ----------- --------- --------- -------- --------
23114 0.15 1010 0.06 0.554 20.00 0.618
----------- ----------- --------- --------- -------- --------
23115 0.01 41 0.05 1.090 1.180 0.560
----------- ----------- --------- --------- -------- --------
23116 0.03 48.3 0.092 2.090 0.722 0.802
----------- ----------- --------- --------- -------- --------
23117 0.04 54.3 0.118 3.510 1.130 1.175
----------- ----------- --------- --------- -------- --------
23118 0.14 109 0.355 6.190 1.200 2.170
----------- ----------- --------- --------- -------- --------
23119 0.02 21.4 0.11 1.805 0.375 1.635
----------- ----------- --------- --------- -------- --------
23121 0.02 54.6 0.177 2.650 1.385 1.865
----------- ----------- --------- --------- -------- --------
23122 0.005 16.3 0.102 0.640 0.150 0.646
----------- ----------- --------- --------- -------- --------
23123 0.005 9.6 0.03 0.472 0.069 0.293
----------- ----------- --------- --------- -------- --------
23124 0.005 2.4 0.012 0.123 0.031 0.115
----------- ----------- --------- --------- -------- --------
23126 0.005 0.9 0.003 0.073 0.013 0.032
----------- ----------- --------- --------- -------- --------
23127 0.005 1.2 0.004 0.054 0.016 0.034
----------- ----------- --------- --------- -------- --------
23129 0.01 14.9 0.054 0.072 0.102 0.158
----------- ----------- --------- --------- -------- --------
Contacts
For further information please visit
www.phoenixcopperlimited.com or contact:
Phoenix Copper Limited Ryan McDermott Tel: +1 208 954
Dennis Thomas 7039 Tel: +44
Richard Wilkins 7827 290 849
Tel: +44 7590
216 657
SP Angel David Hignell / Caroline Rowe Tel: +44 20 3470
(Nominated Adviser) 0470
----------------------------------- -----------------
Brandon Hill Capital Jonathan Evans / Oliver Stansfield Tel: +44 20 3463
(Broker) 5000
----------------------------------- -----------------
Medea Natural Resources Leonidas Howden / Fred White Tel: +44 20 7770
Ltd (Financial Adviser) 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 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 2019.
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.
This information is provided by RNS, the news service of the
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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