TIDMPXC
RNS Number : 3897U
Phoenix Copper Limited
29 July 2020
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
29 July 2020
Phoenix Copper Limited
('Phoenix' or the 'Company')
Robust Drilling Results from the Empire Mine Open Pit Gold
Zone
First Bulk Metallurgical Samples delivered to the Laboratory
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 initial results from
the Company's ongoing drilling programme at the Empire Mine open
pit project in Idaho, USA (the 'Empire Mine').
Programme Highlights
-- 30 Reverse Circulation ('RC') drill holes totalling 1,500
metres ('m') and two Diamond core holes totalling 108 m have been
completed at the Empire Mine Open Pit Gold Zone
-- 7 RC drill holes assayed to date with 23 pending shortly
-- Drilling Highlights from the first batch of 7 at the Empire Mine Open Pit Gold Zone
o Hole KX20-01: 13.7 m of 2.12 grammes/tonne ('g/t') gold from 4.6 m depth
including 1.6m of 3.45 g/t gold from 10.7 m depth
including 1.6 m of 4.40 g/t gold from 13.7 m depth
o Hole KX20-02: 4.6 m of 2.07 g/t gold from 30.5 m depth
including 1.6 m of 3.23 g/t gold from 32.0 m depth
o Hole KX20-05: 1.6 m of 8.45 g/t gold from 4.6 m depth
o Hole KX20-07 1.6m of 3.4 g/t gold from 53.3. m depth
-- Channel samples at the Empire Mine Open Pit Gold Zone show
grades of up to 3.84 g/t gold, 74.1 g/t silver, and 2.83% copper on
surface
-- The first two, 1-ton bulk metallurgical test samples for
thiosulfate gold recovery have been delivered to the laboratory for
pilot scale testing
Ryan McDermott, Chief Executive Officer, said, "I am pleased to
present the first assay results from the Company's 2020 drilling
programmes. The results are from the first seven RC drill holes
completed in the Empire Mine Open Pit Gold Zone and are intended to
follow-up on additional precious metals modelling completed in May
of this year.
Of particular note are drill holes KX20-01 and KX20-05, both of
which returned near-surface gold values greater than 4.40 g/t at
13.7 metres depth and 8.45 g/t at 4.6 metres depth. More
importantly, these drilling intercepts appear to be closely related
to the higher-grade gold trend defined from the 2018 drilling and
channel sampling. During the 2018 field season, channel sample
15486 assayed 36 g/t gold from a surface outcrop, and drill hole
KX18-54, a three metre long interval at 24.4 to 27.4 metres depth,
assayed 22.3 g/t gold in the same zone on the north end of the
Empire Mine property. These assay results were included in the
resource modelling completed since that time, but were not singled
out for reporting in 2018 due to the fact that the associated
copper assays from those samples did not meet the copper cut-off
reporting criteria.
"In addition to the results from the first seven drill holes,
the assays for 48 channel samples collected in the Empire Mine Open
Pit Gold Zone returned respectable gold and copper grades on the
surface, most notably 3.84 g/t gold, 74.1 g/t silver, and 2.83%
copper. The channel samples were collected to aid in drill
targeting and to provide grade and geological information on the
magnetite skarn contact.
"I am also pleased to mention that the first bulk metallurgical
sample of the Empire thiosulfate gold recovery testing programme
has been delivered to AuRIC Laboratories in Salt Lake City, Utah.
Additional samples are being collected and will be shipped over the
course of the next several weeks.
"We will keep shareholders informed as additional assay results
for the 23 holes are received, as well as the Red Star core hole
assays."
Empire Mine Drilling Update
Phoenix has completed a total of 1,608 m of drilling at Empire
in 2020. To date this consists of 1,500 m of RC drilling and 108 m
of diamond drilling. All drill samples have been delivered to the
ALS Global laboratory in Nevada for assay with a turnaround time of
approximately seven to eight weeks. The drill hole results received
to date are from RC drill holes KX20-01 through to KX20-07. The
results for RC drill holes KX20-08 through to KX20-30, and diamond
drill holes KXD20-01 and KXD20-02, are pending.
Table 1 - Drill Hole Assays
Drill Hole Intersection Metres g/t
Number From To Interval Au Ag
------ ----- --------- ----- ------
KX20-01 4.6 18.3 13.7 2.12 9.13
------ ----- --------- ----- ------
including 10.7 12.2 1.6 3.45 7.6
------ ----- --------- ----- ------
including 13.7 15.2 1.6 4.4 4.1
------ ----- --------- ----- ------
including 15.2 16.8 1.6 2.9 3.5
------ ----- --------- ----- ------
KX20-02 30.5 35.1 4.6 2.07 10.56
------ ----- --------- ----- ------
including 32.0 33.5 1.6 3.23 8.9
------ ----- --------- ----- ------
KX20-05 4.6 6.1 1.6 8.45 29.7
------ ----- --------- ----- ------
KX20-06 18.3 19.8 1.6 1.36 2.3
------ ----- --------- ----- ------
and 42.7 44.2 1.6 1.42 13.1
------ ----- --------- ----- ------
KX20-07 53.3 54.9 1.6 3.4 5.5
------ ----- --------- ----- ------
Empire Channel Sampling
48 channel samples, each 1.6 m in length, were collected from
limited outcroppings around the Empire Mine Open Pit Gold Zone to
provide geological and mineralogical information particular to the
magnetite skarn contact. The information from the channel samples
will be used to target additional drilling. Table 2 shows selected
channel samples and assays.
Table 2 - Channel Samples
Sample g/t %
Number Au Ag Cu
------- ----- -----
476554 0.39 48.7 1.215
----- -----
476558 0.39 59.6 2.17
----- ----- ------
476559 0.06 17.2 2.86
----- ----- ------
476560 0.07 15.4 1.46
----- ----- ------
476564 0.9 49.0 1.04
----- ----- ------
476565 0.88 74.1 1.13
----- ----- ------
476578 0.09 26.1 1.615
----- ----- ------
476579 0.08 30.5 1.66
----- ----- ------
476580 0.26 52.6 2.21
----- ----- ------
476587 0.08 11.6 0.996
----- ----- ------
476588 0.07 8.9 1.065
----- ----- ------
476589 0.12 22.3 0.984
----- ----- ------
476593 1.05 17.2 1.39
----- ----- ------
476594 0.45 23.1 1.185
----- ----- ------
476596 0.25 8.2 1.235
----- ----- ------
476597 3.84 30.6 2.8
----- ----- ------
476598 0.66 10.3 2.11
----- ----- ------
476599 1.35 16.9 1.82
----- ----- ------
476600 1.19 38.4 2.55
----- ----- ------
476601 1.5 25.9 2.75
----- ----- ------
476602 0.93 11.3 2.83
----- ----- ------
Other Results Pending Analysis
There are currently 23 Empire RC holes and two Empire diamond
drill holes, as well as 10 Red Star core holes, awaiting assay
results which should be received over the coming weeks and will be
reported as soon as possible.
Empire Mine - Gold and Silver Resource and Drilling
Programme
In May 2020, an updated NI 43-101 compliant resource was
completed by Hardrock Consulting (HRC) and reported for the
polymetallic Empire Mine open-pit oxide deposit. The updated
resource contained measured, indicated, and inferred metal content
of 130,000 tonnes of copper, 342,000 ounces of gold, 9.5 million
ounces of silver and 50,550 tonnes of zinc. The May resource showed
an increase in all metals, but particularly gold and silver, which
increased 56% and 13%, respectively, from the previous May 2019
resource. Resource report details can be found on the Company's
website at www.phoenixcopperlimited.com/news and
www.phoenixcopperlimited.com/research.
As a result of the May 2020 resource update, and the favourable
ammonium thiosulfate gold and silver recovery tests reported in
June 2020, the Company initiated a RC drilling programme targeting
potential extensions to the gold and silver mineralization
identified in the report, as well as targeting areas of inferred
mineralization in an attempt to upgrade to measured and indicated.
The current RC drilling is focused on the area adjacent to a 2018
channel sample that assayed 36 g/t gold.
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.
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
----------------------------------- -----------------
Brandon Hill Capital Jonathan Evans / Oliver Stansfield Tel: +44 20 3463
(Joint Broker) 5000
----------------------------------- -----------------
WH Ireland (Joint Harry Ansell / Adam Pollock Tel: +44 207
Broker) / Katy Mitchell 2201666
----------------------------------- -----------------
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, which was generated for a heap
leach copper SX/EW operation where only copper was recovered. A
further updated NI 43-101 compliant resource was generated in May
2020 for all metals, which resulted in an increase of measured and
indicated resources of +56% gold, +11% copper, +13% silver and +26%
zinc. Present contained metal in all NI 43-101 compliant categories
of resources, measured, indicated and inferred, stand at 342,249
ounces of gold, 129,923 tonnes of copper, 9,502,494 ounces of
silver and 50,550 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 .
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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