TIDMPXC
RNS Number : 2329N
Phoenix Copper Limited
28 January 2021
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
28 January 2021
Phoenix Copper Limited
("Phoenix" or the "Company")
Empire Mine Open Pit Feasibility Study Update
Navarre Creek surface sampling results confirm presence of
volcanic hosted, Carlin-type gold mineralisation
Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLF), the AIM quoted
North American focused base and precious metals emerging producer
and exploration company, is pleased to provide this operational
update for the Empire Mine. The Company is also pleased to announce
the results of the 2020 Navarre Creek sampling programme. More
information on the Navarre Creek project is available on the
Company's website at www.phoenixcopperlimited.com .
Highlights
Empire Mine Open Pit
- Optimisation of the Empire Mine open pit economic model and
feasibility study materially advanced, including:
- Cut-off grades and scale of operations
- Cathode copper and zinc production from heap leach or agitation leach processing
- Gold and silver production from second stage heap leach or agitation leach processing using environmentally friendly ammonium thiosulphate instead of cyanide
- Metallurgical testwork and updated preliminary economic model nearing completion
Navarre Creek
- Surface sampling results confirm presence of volcanic hosted,
Carlin-type mineralisation along selected sections of the 6.1
kilometre strike length
- Majority of samples detect gold and silver, with gold grades
as high as 0.569 grammes per tonne ("g/t"), exceeding
expectations
- Surface grades of gold are consistent with historical
early-stage exploration grades reported from volcanic hosted
deposits in the Carlin trend that host multimillion ounce deposits
in Nevada
- Follow up sampling, geophysics, and drilling scheduled for 2021
Ryan McDermott, Chief Executive Officer, commented: "I am
pleased to provide this positive operational update on our Empire
Polymetallic Open Pit Mine, as well as exciting initial results
from the Navarre Creek gold project.
"We have focused on the metallurgical testwork since October
2020 with laboratory and bench scale leach testing of the magnetite
ore using sodium cyanide and ammonium thiosulfate ("ATS") which was
conducted to specifically target precious metals.
"ATS, the environmentally friendly alternative to cyanide, was
shown to be as effective as cyanide, with laboratory gold
recoveries as high as 97.8%. As it is our intention to produce the
full range of metals reported in the mineral resource, we are
targeting precious metals recovery using ATS and SX-EW to recover
copper and zinc. Current commodity prices make a compelling
backdrop to recover the full suite of Empire metals.
"Following the preliminary ATS testing, the Company shipped
12-tonnes of samples from Empire to the laboratory to be used for a
variety of metallurgical tests. The samples are comprised of a
combination of Empire ore types. As a result of this positive
testwork, a number of favourable processing and production
scenarios present themselves. We are now currently in the final
stages of optimising the project with regard to scale of
production, metal grades and recoveries, capital and operating
costs and, of course, timing.
"Inevitably, we have suffered from several Covid-19 related
delays that have unfortunately slowed progress. However the
laboratory is processing the results as fast as it can, and
Colorado based Forte Dynamics is using those results in the ongoing
development of an all-metal recovery process that will be used as
the framework for updating our August 2019 economic model, and for
the future engineering and development of the Empire Mine Open Pit
project.
"We believe these continued evaluations will be beneficial to
our overall project, and we expect the initial results of this
optimisation process to be published shortly, as we advance towards
a Preliminary Feasibility Study as quickly as possible.
"Also, it is with particular pleasure that I also announce the
initial results of the 2020 Navarre Creek surface sampling
programme. The Navarre Creek claim block to the north west of the
Empire Mine was acquired in 2019 and attracted our attention as the
geology appeared to be similar to volcanic hosted gold deposits on
the Carlin Trend in Nevada, home to several multimillion ounce gold
deposits.
"Of the 90 samples, 53 were above the detection limit for gold
with a high of 0.569 g/t, and 25 were above the detection limit for
silver. There was also a strong correlation between elevated gold
values and elevated antimony values, which is a known marker in
Carlin-type gold systems. With the exception of one sample, all
samples with a gold value greater than 0.1 g/t were noteworthy in
that they occur within the same alteration type, being
predominantly a jasperoid-hosted quartz stockwork and micro-veining
system. This provides valuable information for future sampling and
drill targeting.
"The 90 samples collected are part of our initial surface
reconnaissance exploration programme. Volcanic outcropping in the
Navarre Creek area is strongly weathered and highly leached to
depths of two to four metres. As such, the gold grades in these
initial geochemical Navarre Creek samples are anomalously high and
indicative of higher-grade values in less weathered rocks below the
surface oxidised zone. These results are similar to the historic
grades encountered in the early exploration phases of the now
multimillion ounce deposits on the Carlin Trend in Nevada.
"Follow up sampling, geophysics, and drilling are scheduled for
2021. Photographs of the volcanic rocks at Navarre Creek can be
viewed on the Company's website at www.phoenixcopperlimited.com .
Table 1 below shows the analytical results for gold, silver, and
antimony.
"I look forward to publishing further updates as we progress at
Empire, as well as updates relating to our planned upcoming field
work at Navarre Creek, and Red Star."
Navarre Creek 2020 exploration programme
The Navarre Creek claim block to the north west of the Empire
Mine was acquired in 2019 as a project where the geology appeared
similar to volcanic hosted gold deposits on the Carlin Trend in
Nevada, home to several multimillion ounce gold deposits.
During the summer of 2020, Konnex Resources' exploration team
mapped and sampled the Company's Navarre Creek property, which is
comprised of 9.79 square kilometres (2,420 acres) of unpatented
mining claims and is located approximately five kilometres
north-northwest of the Empire Mine. 90 rock chip and grab samples
were collected in the hydrothermally altered volcanic rocks that
make up the Navarre Creek claims and sent to ALS Laboratories in
Reno, USA for geochemical analysis.
Of the 90 samples, 53 were above the detection limit for gold
with a high of 0.569 g/t, and 25 above the detection limit for
silver. There was also a strong correlation between elevated gold
values and elevated antimony values, typical in Carlin-type
epithermal gold systems. With the exception of one sample, all
samples with a gold value greater than 0.1 g/t occur within the
same alteration type, that being predominantly a jasperoid-hosted
quartz stockwork and micro-veining system. This provides valuable
information for future sampling and drill targeting. The quartz
stockworking and micro-veining appear to occur predominantly in
felsic volcanic tuff units in the Navarre Creek area. One anomalous
sample, 32519, registered a gold value of 0.387 g/t, in a magnetite
skarn sample located on the southern end of the Navarre Creek claim
block where the skarn body occurs as subcrop through the surface
volcanics tuffs. Additionally, the presence of limestone in surface
float near the skarn sample location is evidence that the Paleozoic
sedimentary rocks that occur at the Empire Mine may be near the
surface. The Empire orebody is located roughly five kilometres
south east of the Navarre Creek property and is partly comprised of
a magnetite skarn body hosted in Paleozoic limestone. Additional
sampling is planned to be conducted in the area around sample
32519, as well as a ground magnetics survey. It was also noted that
volcanic outcropping across the Navarre Creek area is strongly
weathered and highly leached to depths of two to four metres.
The 90 samples reported below were collected over an area of
9.79 square kilometres as part of the initial reconnaissance
exploration programme:
Table 1 - Navarre Creek Rock Chip Samples 2020
SAMPLE Gold Silver Antimony SAMPLE Gold Silver Antimony
ID g/t g/t g/t ID g/t g/t g/t
------ ------- --------- ------ ------- ---------
32451 0.01 ND ND 32496 ND ND ND
------ ------- --------- ------ ------- ---------
32452 0.31 4.2 119 32497 ND ND ND
------ ------- --------- ------ ------- ---------
32453 0.1 3.9 3160 32498 0.008 4.1 13
------ ------- --------- ------ ------- ---------
32454 0.02 1 ND 32499 0.049 10.9 9
------ ------- --------- ------ ------- ---------
32455 0.05 0.7 95 32500 ND ND ND
------ ------- --------- ------ ------- ---------
32456 0.02 ND 13 32501 0.005 ND ND
------ ------- --------- ------ ------- ---------
32457 0.2 1.2 42 32502 ND ND ND
------ ------- --------- ------ ------- ---------
32458 0.03 0.6 59 32503 0.005 ND ND
------ ------- --------- ------ ------- ---------
32459 ND ND ND 32504 ND ND 5
------ ------- --------- ------ ------- ---------
32460 ND ND ND 32505 ND ND ND
------ ------- --------- ------ ------- ---------
32461 ND ND ND 32506 ND ND ND
------ ------- --------- ------ ------- ---------
32462 ND 0.5 ND 32507 ND ND ND
------ ------- --------- ------ ------- ---------
32463 ND ND 15 32508 0.008 0.8 14
------ ------- --------- ------ ------- ---------
32464 ND ND 13 32509 0.008 2 9
------ ------- --------- ------ ------- ---------
32465 ND ND 21 32510 0.047 2.8 101
------ ------- --------- ------ ------- ---------
32466 0.012 ND 7 32511 0.09 2.6 933
------ ------- --------- ------ ------- ---------
32467 0.008 ND 8 32512 0.036 ND 129
------ ------- --------- ------ ------- ---------
32468 0.009 ND 5 32513 0.005 ND 17
------ ------- --------- ------ ------- ---------
32469 0.028 ND 8 32514 0.005 ND 13
------ ------- --------- ------ ------- ---------
32470 ND ND ND 32515 0.005 ND 5
------ ------- --------- ------ ------- ---------
32471 0.013 ND ND 32516 0.007 ND 23
------ ------- --------- ------ ------- ---------
32472 ND ND ND 32517 0.077 0.7 24
------ ------- --------- ------ ------- ---------
32473 0.034 ND 16 32518 0.026 0.7 15
------ ------- --------- ------ ------- ---------
32474 0.007 ND 7 32519 0.387 ND 87
------ ------- --------- ------ ------- ---------
32475 0.006 ND ND 32520 0.04 0.6 10
------ ------- --------- ------ ------- ---------
32476 ND ND 11 32521 0.066 2 24
------ ------- --------- ------ ------- ---------
32477 0.139 2.6 45 32522 0.005 0.9 ND
------ ------- --------- ------ ------- ---------
32478 0.028 0.7 5 32523 ND ND 7
------ ------- --------- ------ ------- ---------
32479 ND ND ND 32524 ND ND ND
------ ------- --------- ------ ------- ---------
32480 ND ND 5 32525 ND ND ND
------ ------- --------- ------ ------- ---------
32481 ND ND ND 32526 ND ND ND
------ ------- --------- ------ ------- ---------
32482 0.256 7 36 32527 0.005 ND 7
------ ------- --------- ------ ------- ---------
32483 0.181 4.4 39 32528 0.047 ND 122
------ ------- --------- ------ ------- ---------
32484 0.005 ND ND 32529 0.014 ND 10
------ ------- --------- ------ ------- ---------
32485 0.569 7.3 85 32530 ND ND ND
------ ------- --------- ------ ------- ---------
32486 0.005 ND ND 32531 0.045 ND 5
------ ------- --------- ------ ------- ---------
32487 ND ND ND 32532 0.21 ND 11
------ ------- --------- ------ ------- ---------
32488 ND ND ND 32533 0.007 ND 5
------ ------- --------- ------ ------- ---------
32489 0.008 ND 5 32534 0.031 ND 25
------ ------- --------- ------ ------- ---------
32490 0.006 ND ND 32535 0.02 ND 31
------ ------- --------- ------ ------- ---------
32491 ND ND ND 32536 0.005 ND ND
------ ------- --------- ------ ------- ---------
32492 ND ND ND 32537 0.008 ND ND
------ ------- --------- ------ ------- ---------
32493 ND ND ND 32538 0.028 2.1 9
------ ------- --------- ------ ------- ---------
32494 ND ND ND 32539 0.077 ND 15
------ ------- --------- ------ ------- ---------
32495 ND ND ND 32540 0.115 3.2 70
------ ------- --------- ------ ------- ---------
Notes: g/t (grams per metric tonne or g/tonne), is equivalent to
parts per million. ND = Not Detected
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 (Nominated David Hignell / Caroline Rowe Tel: +44 20 3470
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
----------------------------------- -----------------
EAS Advisors (US Matt Bonner / Rogier de la Tel: +1 (646)
Corporate Adviser) Rambelje 495-2225
----------------------------------- -----------------
Blytheweigh Tim Blythe / Megan Ray Tel: +44 20 7138
(Financial PR) 3204
----------------------------------- -----------------
Notes
Phoenix Copper Limited is a North American focused, base and
precious metal emerging producer and exploration company, 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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