TIDMPGM
RNS Number : 0357B
Phoenix Global Mining Ltd
18 September 2018
Phoenix Global Mining Ltd / Ticker: PGM / Sector: Mining
18 September 2018
Phoenix Global Mining Ltd ('Phoenix' or the 'Company')
2018 Empire drilling programme intercepts high-grade copper
sulphide mineralisation; Mineralised extension recognised to the
north and at depth;
Infill drilling identifies very high-grade copper
mineralisation
Phoenix Global Mining Ltd (AIM:PGM), the AIM quoted, North
American-focused base and precious metals exploration and
development company, is pleased to announce a further set of
results from the Company's ongoing 2018 drill programme at the
Empire Copper Mine in Idaho, USA (the 'Empire Mine'). These results
follow those announced on 4 September 2018.
Highlights
-- Extensive evidence of copper sulphides found below the Empire
mine and to the north-west, east and south.
-- Significant high-grade copper drill intersections to upgrade
the inferred resources inside the open pit as designed in the
Preliminary Economic Analysis ("PEA") including:
o Hole KXD18-10: 24.7 m of 3.33% copper equivalent from 7.3 m depth
o including 1.5 m of 10.13% copper equivalent from 11.9 m depth
o including 2.9 m of 9.11% copper equivalent from 26.5 m depth
o Hole KX18-44: 19.8 m of 2.98% copper equivalent from 164.6 m depth
o including 7.6 m of 6.38% copper equivalent from 166.1 m depth
o including 1.6 m of 12.88% copper equivalent from 168 m depth
-- Stepout drilling outside the PEA open pit intersects high
grade copper sulphide mineralisation, including:
o Hole KX18-36: 3.0 m of 3.03% copper equivalent from 94.5 m depth
o Hole KX18-39: 7.6 m of 1.22% copper equivalent from 6.1 m depth
o Hole KX18-47: 18.3 m of 1.72% copper equivalent from 54.9 m depth
o and 4.6 m of 4.83% copper equivalent from 77.7 m depth
o Hole KXD18-9: 2.7 m of 5.46% copper equivalent from 26.4 m depth
o Hole KXD18-12: 4 m of 0.71% copper equivalent from 88.4 m depth
-- A new zone of mineralisation to be called "Red Star" has been
discovered 330 metres north-west of the Empire PEA pit towards the
old Horseshoe Mine. The outcrop is 20 metres wide and contains
heavy oxide/sulphide mineralisation. Trench samples have been sent
for assaying.
-- Five drill hole intercepts contain predominantly chalcopyrite
& bornite copper sulphide mineralisation.
-- Hole KX18-47 confirms the presence of higher-grade sulphide
mineralisation beneath the oxide open pit.
-- Elevated zinc, gold and silver values are associated with the
copper intersections. Grades of up to 8.82% zinc, 7.93 grammes per
tonne ("g/t") gold, 256 g/t silver.
-- Assay results from a further 19 drill holes and 298 surface
channel samples are pending and will be reported shortly.
Dennis Thomas, Chief Executive Officer, said, "It is our
pleasure to present the latest assay results from the ongoing 2018
Empire drill programme. These results are "game changing" for the
Company given they provide extensive evidence that a high-grade
feeder system exists below the Empire oxide resource and
demonstrate the existence of such a sulphide system within the
Empire Mine.
"To date, we have focused on the oxides at surface but these
results will inevitably require following up with further
exploration of the sulphide system. We now have five drill holes
that have intercepted predominantly chalcopyrite and bornite copper
sulphide mineralisation in high-grade vein structures. This batch
of results has given us renewed confidence to explore the sulphides
in more detail. Also, quite significantly we have reported material
gold and silver grades that would boost project economics.
"In addition, we are pleased to report the discovery of a new
zone of surface mineralisation in the Empire block, now referred to
as Red Star. Red Star is located approximately 330 metres
north-west of the northern end of the Empire resource area and is a
20 metre-wide surface outcrop across the structure. The
mineralisation is a mix of oxides and sulphides, with strong
chrysocolla and bornite showings, exposed in a heavily timbered
canyon. Weather permitting, we plan to drill Red Star before the
year end. I look forward to reporting the channel sampling results
from Red Star when they become available.
"With regard to the ongoing PEA focused on the copper oxide
exploration, we are highly encouraged by the infill drilling
results in and around the Empire pit. Notable results are 19.8
metres of 1.88% copper including 1.6 metres of 8.85%, and 24.7
metres of 1.58% copper which include 0.9 metres of 7.72% copper in
hole KX18-10. Not only do we believe that these results will have a
positive effect on the overall grade and tonnage in the existing
resource, but the 19.8 metre intercept sits entirely below the
Empire PEA pit shell, which should have a positive effect on the
expansion of the resource in that area. "We would also point out
that the 7.72% (KXD18-10) and 8.85% copper (KX18-44) intercepts
present as copper oxides in the core and reverse circulation ("RC")
chips appear to be associated with high-angle structures continuing
at depth. The Empire team will use these higher-grade intervals to
continue defining the deeper sulphide system. Drill hole KX18-44
(8.85% copper) was a follow-up to last season's drill hole KXD17-10
(4.6 metres of 1.34% copper, including 1.5 metres of 2.45% copper),
which was part of a 2017 deep sulphide drilling programme, the
results of which were reported by the Company in January 2018.
"Finally, we are now targeting additional drilling to be
completed in the next two months that will follow up on the
previously reported eastern and western mineralised extensions, as
well as the newly recognised north-western extension, and follow up
on the sulphide mineralisation reported here. Our infill drilling
programme will also continue into the autumn, which is designed to
upgrade the inferred resources to the measured and indicated
category. Thus far, the infill drilling programme results are
robust and will be used to update the resource model in which the
average grade of the "measured and indicated" resource is 0.52%
copper. Our hope is that continued drilling results similar to
those reported here and previously will have a positive effect on
the overall grade and tonnage, which will materially enhance the
economics of the project.
"We will continue to report new assay results over the next few
months as the drilling progresses and the results are received from
the ALS Global laboratory in Nevada."
Drilling Update
Of the planned 12,200 metre drill programme scheduled for
completion in 2018, Phoenix has completed a total of 7,604 metres
of drilling at Empire. To date this consists of 5,328 metres of RC
drilling, 1,573 metres of HQ core drilling, and 703 metres of PQ
core drilling. Drill samples are being delivered to the ALS Global
laboratory in Nevada for assay with a turnaround time of
approximately six weeks. The drill hole results received to date
from core holes KXD18-7 through to KXD18-13 and RC holes KX18-35
through to KX18-47 are shown below. The copper equivalent grade
("Cu Equ") is calculated on the basis of metal prices as follows -
copper $6,000/tonne, zinc $2,325/tonne, gold $1,200/oz and silver
$14.0/oz.
Hole Intersection Tcu Zn Au Ag Cu
Metres Equ
Number From To Interval % % g/t g/ % Comments
KX18-36 94.5 97.5 3.00 1.14 0.04 1.25 9.3 3.03 stepout
KX18-38 100.6 102.1 1.50 0.79 0.13 0.39 29.2 1.31 stepout
KX18-39 6.1 13.7 7.60 0.31 0.14 1.10 20.0 1.22 stepout
KX18-42 19.8 27.4 7.60 0.27 0.07 0.10 5.5 0.40 infill
and 38.1 45.7 7.60 0.32 0.07 0.17 5.9 0.50 infill
and 62.5 64.0 1.50 0.40 0.07 0.06 4.5 0.50 stepout
KX18-43 29.0 32.0 3.00 0.42 0.21 0.01 2.4 0.53 infill
KX18-44 164.6 184.4 19.80 1.88 0.65 0.79 44.8 2.98 infill
including 166.1 173.7 7.60 4.23 0.77 1.71 100.6 6.38 infill
including 168.0 169.0 1.60 8.85 0.79 4.56 105.0 12.88 infill
KX18-47 6.1 16.8 10.70 0.61 0.02 1.46 29.8 1.78 infill
including 7.6 12.2 4.60 0.91 0.02 2.42 49.2 2.84 infill
and 54.9 73.2 18.30 0.96 0.08 0.83 26.3 1.72 stepout
including 65.5 71.6 6.10 1.62 0.04 0.88 25.9 2.40 stepout
and 77.7 82.3 4.60 2.54 0.07 2.85 57.0 4.83 stepout
including 77.7 79.2 1.50 5.53 0.14 7.67 120.0 11.42 stepout
KXD18-9 0.0 3.1 3.10 0.36 0.50 0.06 6.7 0.64 stepout
and 13.7 16.8 3.00 0.48 2.07 0.07 6.6 1.38 stepout
and 26.4 29.1 2.70 2.99 5.07 0.33 39.2 5.46 stepout
including 27.4 29.1 1.70 5.19 8.82 0.42 59.1 9.32 stepout
KXD18-10 0.0 1.5 1.50 0.71 1.10 0.12 8.8 1.28 infill
and 7.3 32.0 24.70 1.58 1.96 1.20 28.7 3.33 infill
including 11.9 13.4 1.50 2.85 4.80 7.93 43.2 10.13 infill
including 17.7 32.0 14.30 2.23 1.11 0.89 41.5 3.54 infill
including 26.5 29.4 2.90 4.53 0.19 4.02 256.3 9.11 infill
including 21.0 21.9 0.90 7.72 1.46 3.32 83.5 11.05 infill
KXD18-11 38.7 43.2 4.60 0.47 0.10 0.68 9.2 1.02 infill
and 57.6 62.2 4.60 0.79 0.06 0.24 14.9 1.08 stepout
including 57.6 59.1 1.50 1.61 0.09 0.70 41.0 2.40 stepout
KXD18-12 9.8 11.3 1.50 0.40 0.06 0.02 9.3 0.51 infill
and 84.4 88.4 4.00 0.55 0.07 0.03 15.0 0.71 stepout
KXD18-13 22.7 26.5 3.80 0.59 0.07 0.13 17.8 0.83 infill
including 25.1 26.5 1.30 1.23 0.05 0.49 53.5 1.97 infill
There are currently five RC holes and 14 diamond drill holes,
along with 298 surface channel samples, awaiting assay results.
These results will be announced following the receipt of assay
certificates and QA/QC sign-off.
Qualified Person
Information in this announcement has been reviewed by Roger
Turner ACSM., MSc., MIMMM., CEng., 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.
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.
For further information please visit www.pgmining.com or
contact:
Phoenix Global Mining Dennis Thomas / Richard Wilkins Tel: +44 7827
Ltd 290 849 (Dennis)
/
+44 7590 216 657
(Richard)
SP Angel Lindsay Mair / 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
----------------------------------- ------------------
Blytheweigh Tim Blythe / Camilla Horsfall Tel: +44 20 7138
(Financial PR) / Megan Ray 3204
----------------------------------- ------------------
Notes
Phoenix Global Mining Ltd (AIM: PGM) 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 and gold in
Canada.
PGM's flagship project is a brownfield, past producing, copper,
gold, silver, zinc and tungsten underground mine, the Empire Mine
near Mackay in Idaho. PGM acquired an 80% interest in the property
in 2015. Based on a total of 315 drill holes a NI 43-101 compliant
oxide resource was completed in late 2017. A PEA for an open pit
heap leach solvent extraction and electrowinning ("SX-EW") mine was
completed in April 2018 with a design capacity of 8,000 tonnes of
copper cathode a year. In June 2018 a campaign consisting of 12,200
metres of RC and diamond core drilling was started. This programme
is designed to upgrade and increase the oxide reserves, provide
samples for ongoing metallurgical testwork, geotechnical and
hydrological studies and condemnation drilling for the heap leach
pad site, waste dump and plant site. At the same time the
consultants were appointed to complete a NI 43-101 compliant
Bankable Feasibility Study ("BFS"). The lead consultant is RPM
Global who are supported by Samuel Engineering, both based in
Denver, Colorado. Cascade Earth Sciences of Pocatello, Idaho have
been working on environmental and permitting issues since 2016 and
form part of the BFS team. Golder Associates are designing the heap
leach pad and ponds, and Call and Nicholas are carrying out the
open pit slope stability studies.
At Empire, it is estimated that only 5% 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 resource relates to the oxide resource
only, which remains open along strike and does not include the
deeper, higher grade sulphides. In addition, PGM has increased the
claim area from 813 acres at the time of its acquisition to 1,837
acres, mainly to the northwest, and in so doing has increased the
potential for additional oxide and sulphide resources by a total
strike length of approximately 1,500 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. Exploration will continue during 2018
to identify drilling targets. Fieldwork is already underway.
The Company has also acquired an exclusive option to explore and
develop the Gordon Lake Project, in the Northwest Territories,
Canada, which is a high-grade shear hosted gold project comprising
of 17 known mineralised zones of which only four have been tested
with 59 diamond drill holes. The Company will proceed to examine
the optimal way forward to develop the project as a low-cost
underground gold producer.
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 three
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 PGM's website at www.pgmining.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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