TIDMPXC
RNS Number : 1259Y
Phoenix Copper Limited
12 January 2022
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
12 January 2022
Phoenix Copper Limited
('Phoenix' or the 'Company')
Red Star Drilling Results
Exploratory drilling at Red Star encounters further copper,
gold, silver, zinc and lead mineralisation
Phoenix Copper Ltd (AIM: PXC; OTCQX: PXCLF; OTCQX ADR: PXCLY),
the AIM quoted USA focused base and precious metals emerging
producer and exploration company, is pleased to announce the assay
results from additional drilling at the Red Star silver - lead
deposit, adjacent to the Empire Mine Open Pit Project, Custer
County, Idaho, USA.
Highlights:
-- In a programme designed to test and help delineate the
boundaries of the magnetite zones, seven exploratory reverse
circulation ("RC") holes were drilled at Red Star, totaling 876.3
metres ("m"), all of which encountered further mineralisation.
-- Silver and lead grades encountered in the drilling are
consistent with, or exceed, those reported in the
Red Star maiden resource; copper, gold and zinc are also encountered in significant quantities.
Significant drill results are listed in Table 1 below, including
the following:
Hole RS21-01
-- 27.4 m of 0.69% copper, 0.8 grammes per tonne ("g/t") gold
and 14.9 g/t silver starting at a depth of 38.1 m,
o including 7.6 m of 1.61% copper, 2.3 g/t gold and 38.6 g/t
silver from 50.3 m,
o and including 1.5 m of 2.71% copper, 3.9 g/t gold and 50.7 g/t
silver from 51.8 m
Hole RS21-02
-- 36.6 m of 0.52% copper, 0.5 g/t gold, 24 g/t silver, 0.28%
lead, and 0.64% zinc starting at a depth of 82.3 m,
o Including 13.7 m of 23.9 g/t silver and 1.46% zinc from 82.3
m,
o Including 1.5 m of 0.56 g/t gold, 92.3 g/t silver, 3.13% lead,
and 2.77% zinc from 83.8 m
o Including 7.6 m of 1.35% copper, 1.2 g/t gold and 49.0 g/t
silver from 102.1 m
Hole RS21-05
-- 7.6 m of 0.20% copper, 0.3 g/t gold, and 17.4 g/t silver from 35.1 m depth
o Including 3 m of 0.29% copper, 0.7 g/t gold, and 28.9 g/t
silver from 39.6 m
-- These results, and the results of the ground magnetic survey
recently completed on Red Star, will be used to target a planned
3,000 m diamond core drilling programme in 2022.
Ryan McDermott, Chief Executive Officer, said, "I am delighted
with the latest drill results from the Red Star program. All seven
drill holes encountered mineralization consistent with, if not
exceeding, the grades in the maiden Red Star resource, further
demonstrating the widespread polymetallic mineralization at Empire,
and the continuity of a northerly trending system.
"This drilling confirms that the surface geology and
geochemistry, as well as the magnetic anomalies identified in the
ground magnetics survey reported on 20 October 2021, show a
continuous northerly-trend toward the Horseshoe-White Knob project
as expected, and are reliable and provide prospective drill targets
for a planned 3,000 m core drilling program in 2022.
"The 2021 Red Star ground magnetics survey identified three
magnetic zones east-southeast of the Red Star discovery outcrop
covering nearly 46 acres. These seven exploratory drill holes,
RS21-01 to RS21-07, targeted specific areas within those 46 acres
for the purpose of providing subsurface exploratory information for
future drilling programs. These latest drilling results have
accomplished that purpose, and the Phoenix team is excited to apply
what we have learned to our next phase of Red Star drilling.
"In addition to our ongoing exploration programs, we continue to
focus our efforts on the Empire Open-Pit copper oxide feasibility
study, scheduled for completion in Q2 of this year, and with the
ongoing permitting of the Empire copper-oxide open pit. The
evaluation of the Navarre Creek gold project, ahead of an
anticipated exploratory drilling program in 2022, is also in
progress, as is the planned reporting of the results of the Navarre
Creek ground magnetics survey and geophysical program in the coming
weeks. I look forward to an exciting year ahead for the Company and
wish all our stakeholders a happy and healthy 2022."
Background
During the 2021 field season, a ground magnetics survey was
conducted in the Red Star project area. The results of the survey
identified three subsurface magnetite zones east of the Red Star
discovery outcrop, which had not been apparent in the surface
outcrop. In early October 2021, a RC drill rig became available for
a short period of time and drilled seven exploratory holes at
various locations throughout the newly identified magnetic zones as
a precursor to a future and more extensive diamond core drilling
programme.
The Red Star exploration programme was designed to test and help
delineate the boundaries of the magnetite zones and to provide
geochemical data and targeting for the next phase of drilling. The
results confirmed the continuity of magnetite related
mineralisation along northerly trending structures. The Red Star
mineralisation appears as discrete zones plunging steeply to the
east along the structures mapped in the geophysical survey, similar
to the well understood magnetite zones encountered in the Empire
Open-Pit deposit.
Table 1 - Red Star Reverse Circulation Drilling Results January
12, 2022
Drill Hole Intersection Metres * g/tonne % % % Mo W
Number From To Interval Au Ag Cu Pb Zn ppm ppm
------- ------ --------- ---- ----- ----- ----- ----- ------- ------
RS21-01 38.1 65.5 27.4 0.8 14.9 0.69 0.00 0.03 7.6 5.0
including 50.3 57.9 7.6 2.3 38.6 1.61 0.00 0.03 2.0 5.0
including 51.8 53.3 1.5 3.9 50.7 2.71 0.01 0.04 3.0 5.0
------- ------ --------- ---- ----- ----- ----- ----- ------- ------
RS21-02 51.8 54.9 3.0 2.0 2.7 0.01 0.05 0.06 7.0 5.0
and 82.3 118.9 36.6 0.5 24.0 0.52 0.28 0.64 147.3 61.3
including 82.3 96.0 13.7 0.2 23.9 0.07 0.72 1.46 380.1 24.4
including 83.8 85.3 1.5 0.6 92.3 0.18 3.13 2.77 2950.0 90.0
including 102.1 109.7 7.6 1.2 49.0 1.35 0.00 0.16 4.8 6.0
------- ------ --------- ---- ----- ----- ----- ----- ------- ------
RS21-03 30.5 32.0 1.5 0.1 13.2 0.28 0.01 0.29 2.0 5.0
------- ------ --------- ---- ----- ----- ----- ----- ------- ------
RS21-04 50.3 62.5 12.2 0.4 16.5 0.12 0.07 0.04 47.9 293.8
including 53.3 57.9 4.6 0.9 24.5 0.15 0.08 0.04 60.3 403.3
------- ------ --------- ---- ----- ----- ----- ----- ------- ------
RS21-05 7.6 15.2 7.6 0.2 9.2 0.16 0.01 0.04 1.4 5.0
RS21-05 35.1 42.7 7.6 0.3 17.4 0.20 0.02 0.21 2.2 8.0
including 39.6 42.7 3.0 0.7 28.9 0.29 0.02 0.24 2.5 12.5
------- ------ --------- ---- ----- ----- ----- ----- ------- ------
RS21-06 173.7 176.8 3.0 0.5 7.9 0.29 0.01 0.12 4.0 10.0
------- ------ --------- ---- ----- ----- ----- ----- ------- ------
RS21-07 42.7 65.5 22.9 0.0 2.2 0.01 0.01 0.21 2.4 5.3
------- ------ --------- ---- ----- ----- ----- ----- ------- ------
* Length along hole (not equivalent to true width).
Assay Quality Control
HQ drill core is logged by Konnex personnel at Phoenix's drill
core facility located in Mackay, Idaho, USA. The drill core is then
sawed in half. One half is sent to a commercial laboratory for
assaying, and the other half is kept for future reference. A strict
QA/QC programme is in place by integrating duplicates, blanks and
certified reference standards into the core sample sequence.
RC drill samples are collected in bags. One sample is collected
per each five-foot interval (1.52m) down the hole. A representative
sample is also collected and kept for future reference at the
Phoenix facility. Phoenix's geologists carry out the sample
preparation and insertion of the duplicates, blanks, and certified
reference material at the site before sending the sample batches to
the ALS Global laboratory for the same processing and analysis as
the diamond drill core.
Qualified Person
The foregoing technical information 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 Company deems the information contained within this
announcement 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 the 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
------------------------------------ ---------------------
Tavira Securities Jonathan Evans / Oliver Stansfield Tel: +44 20 7100
Ltd (Joint Broker) 5100
------------------------------------ ---------------------
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 sq km
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 Electra Battery Materials Corporation (formerly 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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