TIDMPXC
RNS Number : 6622V
Phoenix Copper Limited
15 December 2021
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
15 December 2021
Phoenix Copper Limited
('Phoenix' or the 'Company')
Empire Mine Open Pit Status Update
Exploratory drilling encounters further high-grade oxide
mineralisation
Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLF), the AIM quoted USA
focused base and precious metals emerging producer and exploration
company, is pleased to announce a status update on its Empire Mine
Open Pit Project in Idaho, USA.
Highlights
-- Three shallow exploratory drill holes into an area of the
Empire Mine Open Pit not previously drilled all encountered further
oxide mineralisation, including:
o 18.3 metres ('m') of 0.61% copper, and 12.8 grammes/tonne
('g/t') silver from surface including 4.6 m of 0.86% copper, 15.5
g/t silver, and 1.02% zinc from 9.1 m
-- The Empire Mine Open Pit project remains on course for Production
-- The Empire Mine Oxide Open Pit feasibility study remains on
schedule for completion in early Q2 2022 and will include an update
of the resources
-- The Empire Mine Oxide Open Pit operating plan was presented
to the community of Mackay, Idaho during a Town Hall meeting on 1
December 2021
Ryan McDermott, Chief Executive Officer, said, "We have received
the analytical results from Empire step-out drill holes KX21-01 to
KX21-03, and from three condemnation drill holes. These drill holes
were completed using a reverse-circulation drill rig that was
available for a short period while our core drilling rig was busy
completing an oriented coring program for the feasibility-level
slope stability studies.
"We completed three exploratory drill holes on the south end of
the Empire oxide copper deposit in an area that had no previous
drilling but surface indications suggesting it to be prospective.
Copper, silver, and zinc mineralisation was intercepted in all
three of the drill holes KX21-01 - KX21-03 (see results in Table 1,
below), including grades in excess of the average grade used in our
preliminary economic model. KX21-02 was of significant interest,
with an average oxide copper grade of 0.61% from the surface down
18.3 m, and including 4.6 m of 0.86% copper. This mineralised zone
appears contiguous with the main Empire oxide deposit but has not
yet been included in the resource. KX21-01 encountered a shorter
interval of 3.1 m of zinc mineralisation grading 1.56% at 47.2 m
depth, and KX21-03 encountered a 1.5 m interval of 1.46% copper at
a depth of 29.0 m. The Phoenix team is assessing these results for
additional drilling in the future, as well as inclusion in the next
resource update in early Q2 2022.
"Analytical data from the condemnation drilling was as expected
with no significant mineralised intercepts. The 2021 geotechnical
oriented core drilling program was also successful in providing
data for slope stability calculations to be used in the feasibility
study.
"Our focus is now squarely on bringing the Empire Open Pit into
production as soon as possible. With over 400 holes drilled, we
have a profound understanding of the resource at the Open Pit and
have planned our budgets accordingly. To be finding evidence of
additional ore at prospective grades is very good news. We are also
pleased to confirm that the feasibility study for the Empire Open
Pit Project remains on track for completion in early Q2 2022, and
that the Company held its first Town Hall community meeting in
Mackay on 1 December 2021, as part of our ESG and Sustainability
Program's community liaison process. More than 135 citizens
attended the meeting, wherein the Phoenix team presented a
description of the proposed operating plan and then fielded
questions and comments from the attendees. The questions and
comments from the community included, but were not limited to,
transportation and supply routes, mine staffing and staff housing,
and economic community benefits. The information gathered will be
invaluable in the future operating design. I want to personally
thank everyone who attended the meeting for taking time out of
their busy schedules to do so."
Table 1 - Empire Drilling Results 15 December 2021
Drill
Hole Intersection Metres g/tonne % % % Mo W
Number From To Interval Au Ag Cu Pb Zn ppm ppm
------ ------ --------- ---- ----- ----- ----- ----- ------ ------
KX21-01 30.5 35.1 4.6 0.0 9.4 0.43 0.04 0.18 55.0 40.0
KX21-01 47.2 50.3 3.1 0.0 12.4 0.54 0.02 1.56 253.0 10.0
KX21-01 105.2 109.7 4.6 0.0 3.0 0.44 0.01 0.39 49.0 30.0
------ ------ --------- ---- ----- ----- ----- ----- ------ ------
KX21-02 0.0 18.3 18.3 0.0 12.8 0.61 0.02 0.40 92.3 153.3
including 9.1 13.7 4.6 0.0 15.5 0.86 0.01 1.02 132.0 150.0
------ ------ --------- ---- ----- ----- ----- ----- ------ ------
KX21-03 29.0 30.5 1.5 0.0 12.9 1.46 0.08 0.30 229.0 60.0
------ ------ --------- ---- ----- ----- ----- ----- ------ ------
KX21-03 100.6 102.1 1.5 0.0 2.6 0.01 0.01 1.34 62.0 50.0
------ ------ --------- ---- ----- ----- ----- ----- ------ ------
The Empire Open Pit Copper Oxide Project
The Empire Open Pit copper oxide project contains a Measured
& Indicated resource of 87,543 tonnes of copper, 43,871 tonnes
of zinc, 238,406 ounces of gold and 7.6 million ounces of silver.
At a $3.60 copper price the preliminary economic model shows a
pre-tax 7.5% NPV of $105 million with a 57% IRR, and a post-tax NPV
of $88 million with a 47% IRR. Estimated capital expenditure of $53
million is paid back within two years, and gross revenue over 10
years is $836 million. At current metal prices the pre-tax NPV
rises to $159 million with a 92% IRR, and post-tax NPV rises to
$144 million with an 82% IRR. Capital expenditure is paid back in
less than one year, and gross revenue over 10 years is $911
million. It is hoped that these economics can be improved as a
result of the ongoing work on the feasibility study.
Qualified Person
The foregoing technical information contained in this news
release has been reviewed and verified by Zachary J. Black, SME-RM,
General Manager. Mr. Black is a resource geologist with more than
17 years of domestic and international experience in the mining and
construction industries. Mr. Black has a degree in Geological
Engineering from the University of Nevada, Reno and is a registered
member of the Society for Mining, Metallurgy, and Exploration, Inc.
He is a Qualified Person under the AIM Rules. Mr. Black 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 ongoing Environmental,
Social, and Corporate Governance (ESG) platform, overseen by the
Company's ESG & Sustainability Committee.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 which has been
incorporated into UK law by the European Union (Withdrawal) Act
2018. Upon the publication of this announcement via Regulatory
Information Service, this inside information is now considered to
be in the public domain.
Contacts
For further information please visit https://phoenixcopperlimited.com or contact:
Phoenix Copper Limited Ryan McDermott Tel: +1 208 954
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 2201666
Broker) / Katy Mitchell
------------------------------------ ---------------------
Panmure Gordon (UK) John Prior / Hugh Rich / Ailsa Tel: +44 20 7886
Limited (Joint Broker) Macmaster 2500
------------------------------------ ---------------------
EAS Advisors (US Matt Bonner / Rogier de la Rambelje Tel: +1 (646)
Corporate Adviser) 495-2225
------------------------------------ ---------------------
Blytheweigh Tim Blythe / Megan Ray Tel: +44 20 7138
(Financial PR) 3204
------------------------------------ ---------------------
Notes
Phoenix Copper Limited is a USA focused, base and precious
metals emerging producer and exploration company, initially
targeting copper and zinc production from an open pit mine from
late 2022.
Phoenix's primary operations are focused near Mackay, Idaho in
the Alder Creek mining district, at the 80% owned Empire Mine
property, which historically produced copper at grades of up to 8%,
as well as gold, silver, zinc and tungsten, from an underground
mine.
Since 2017, Phoenix has carried out extensive drill programmes
which resulted in the publication of a NI 43-101 PEA in October
2020 for an open pit heap leach solvent extraction and
electrowinning ("SX-EW") mine, which was updated in October 2020.
The contained metal in all NI 43-101 compliant categories of
resources, measured, indicated, and inferred, stand at 129,641
tonnes of copper, 355,523 ounces of gold, 10,133,772 ounces of
silver and 58,440 tonnes of zinc. Phoenix updated its economic
model in February 2021 to include the processing of all contained
metals through a two phased approach.
In addition to Empire, the district includes the historic
Horseshoe, White Knob and Blue Bird Mines, past producers of
copper, gold, silver, zinc, lead and tungsten from underground
mines. A new discovery at Red Star, 330 metres northwest of the
Empire Mine proposed open pit, has revealed high grade silver /
lead sulphide ore and from three shallow exploration drill holes. A
maiden resource of 103,000 tonnes containing 173.4 g/tonne silver,
0.85 g/tonne gold and 3.85% lead (1.6 million ounces silver
equivalent ) was reported in an NI 43-101 technical report
published in May 2019. Additionally, the district includes the
Navarre Creek Project, a volcanic hosted, precious metals target in
a 14.48 km(2) area. The Company's total land package at Empire
comprises 8,034 acres (32.51 sq kms).
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 stated aim of the Company is to fund this phased
exploration through free cashflow generated by its initial mine. A
Plan of Operations in respect of the initial open pit mine was
filed with the relevant regulatory authorities in June 2021.
Phoenix also has two wholly owned cobalt properties on the Idaho
Cobalt Belt to the north of Empire. An Earn-In Agreement has been
signed with First Cobalt Corporation, Toronto, in respect of one of
those properties.
More details on the Company, its assets and its objectives can
be found on PXC's website at https:// phoenixcopperlimited.com.
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