TIDMPXC
RNS Number : 0997Z
Phoenix Copper Limited
16 September 2020
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
16 September 2020
Phoenix Copper Limited
('Phoenix' or the 'Company')
Empire Mine Open Pit Drilling Continues to Show High-Grade Gold
Mineralization
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 further analytical
results from the Company's reverse circulation ('RC') and core
drilling programme at the Empire Mine open pit project (the 'Empire
Mine') and the Red Star core drilling programme in Idaho, USA.
Programme Highlights
Ø Hole KXD20-01: 1.5 metres ('m') of 2.84 grammes/tonne ('g/t')
gold from 9.4 m depth
Ø Hole KXD20-02: 12.8 m of 4.42 g/t gold from 4.3 m depth
including 1.5 m of 11.10 g/t gold from 15.5 m depth
Ø Hole KX20-25: 9.1 m of 2.90 g/t gold from 22.9 m depth
Including 1.5 m of 5.47 g/t gold from 22.9 m depth
Ø Hole KX20-26: 7.6 m of 4.38 g/t gold from 21.3 m depth
Including 1.5 m of 10.75 g/t gold from 22.9 m depth
Ø Hole KX20-23: 12.2 m of 1.37% copper from 15.2 m depth
Ryan McDermott, Chief Executive Officer, said, "We have received
the analytical results from the remaining nine RC holes and two
HQ-diameter core holes drilled in the Empire Mine Gold Zone and the
gold and copper grades continue to impress. The gold values that we
are seeing in the trends targeted in this year's drilling are
consistent and remarkably high-grade, and considering their
relatively shallow depths, should be readily accessible by open pit
mining. Gold assays as high as 9.78 g/t, silver assays as high as
508.00 g/t, and copper assays as high as 6.13% were previously
reported in drill holes KX20-01 through KX20-21. The most recent
gold, silver, and copper assays from the 2020 Empire Gold Zone
drilling programme RC holes KX20-22 through KX20-30 and core holes
KXD20-01 and KXD20-02, as well as the previously reported drilling
assays, are shown below in Tables 1, 2 and 3.
"The Phoenix team is encouraged by the results of the 32 drill
holes of the 2020 season. These assays will be added to the
database used in the calculation of the May 2020 NI 43-101 Empire
Resource, which contained Measured, Indicated and Inferred
Resources of 342,249 ounces of gold, 9.5 million ounces of silver,
and 129,932 metric tons of copper, and used to recalculate the
resource. Hardrock Consulting (HRC) is scheduled to update the
resource in early Q4 2020 based on a data set consisting of 411
drill holes plus the assays from Empire channel samples due at any
time. The resource update will be followed by an updated
Preliminary Economic Assessment (PEA) in mid-Q4 2020. In addition,
the metallurgical pilot testing programme at AuRIC Laboratories in
Salt Lake City, Utah is well underway and expected to provide
additional reporting on ammonium thiosulfate (ATS) gold recovery in
the coming weeks.
"In addition to the Empire Gold Zone drilling results, we have
also received the results of Red Star core holes RS20-07 through
RS20-10. These holes were primarily drilled to give us an
indication of the limits of the mineralisation, both geologically
into the granite and at the limits of our patented claims to the
north. Although all four holes encountered modest mineralisation,
the geological and geochemical information gathered from these
holes provides us with invaluable data for targeting our next phase
of drilling the Red Star vein system. To date, Phoenix has drilled
13 holes in the Red Star trend, with seven of the 13 showing silver
intercepts of 3.76 oz/tonne to 35.3 oz/tonne and lead values from
1.17% to 20% for the same intervals. The previous Red Star drilling
results were tabulated and reported by the Company on 25 August
2020. The drilling completed thus far at Red Star has provided
significant promise and will continue to do so as we target the
next round of drilling. The Company's immediate focus is on the
Empire Gold Zone resource update, however, additional news
regarding Red Star will be forthcoming as the team further
evaluates the geological and geochemical drilling data.
"We are also awaiting the assays for the rock chip samples from
the Navarre Creek gold area".
Table 1 - Empire Drilling Results 16 September, 2020
Drill Intersection Metres g/tonne %
Hole
Number From To Interval Au Ag Cu
KXD20-01 7.9 15.5 7.6 1.25 11.16 0.94
including 9.4 11.0 1.5 2.84 10.00 1.32
including 14.0 15.2 1.2 1.54 3.70 0.22
------ ----- ---------
KXD20-02 4.3 17.1 12.8 4.42 6.47 0.03
including 15.5 17.1 1.5 11.10 3.80 0.01
------ ----- --------- ------ ------ -----
KX20-22 0.0 3.0 3.0 0.61 35.85 1.04
------ ----- --------- ------ ------ -----
KX20-23 15.2 27.4 12.2 0.22 47.51 1.37
------ ----- --------- ------ ------ -----
KX20-24 36.6 38.1 1.5 0.46 95 1.24
------ ----- ---------
KX20-25 22.9 32.0 9.1 2.90 9.90 0.28
including 22.9 24.4 1.5 5.47 6.50 0.17
including 27.4 29.0 1.5 3.94 18.00 0.38
and 35.1 36.6 1.5 3.18 9.60 0.24
------ ----- ---------
KX20-26 21.3 29.0 7.6 4.38 2.44 0.01
including 22.9 24.4 1.5 10.75 1.60 0.01
------ ----- ---------
KX20-29 41.1 45.7 4.6 2.53 30.57 0.51
including 41.1 42.7 1.5 4.09 46.20 0.55
------ ----- --------- ------ ------ -----
KX20-30 65.5 67.1 1.5 2.11 0.90 0.01
------ ----- --------- ------ ------ -----
Table 2 - Empire Drilling Results Reported 29 July, 2020
Drill %
Hole Intersection Metres g/t
Number From To Interval Au Ag Cu
=========== ====== ===== ========= ===== ====== =====
KX20-01 4.6 18.3 13.7 2.12 9.13 0.40
including 10.7 12.2 1.5 3.45 7.6 0.31
including 13.7 15.2 1.5 4.4 4.1 0.23
including 15.2 16.8 1.5 2.9 3.5 0.15
------ ----- --------- ----- ------
KX20-02 30.5 35.1 4.6 2.07 10.56 0.33
including 32.0 33.5 1.5 3.23 8.9 0.51
------ ----- --------- ----- ------ -----
KX20-05 4.6 6.1 1.5 8.45 29.7 0.14
------ ----- --------- ----- ------
KX20-06 18.3 19.8 1.5 1.36 2.3 0.04
and 42.7 44.2 1.5 1.42 13.1 0.26
------ ----- --------- ----- ------
KX20-07 53.3 54.9 1.5 3.4 5.5 0.13
------ ----- --------- ----- ------ -----
Table 3 - Empire Drilling Results Reported 25 August, 2020
Drill Intersection Metres g/tonne %
Hole
Number From To Interval Au Ag Cu
=========== ====== ===== ========= ===== ======= =====
KX20-08 0.0 4.6 4.6 0.02 16.83 1.01
including 1.5 3.0 1.5 0.02 24.10 1.60
------ ----- --------- ----- ------- -----
KX20-09 16.8 22.9 6.1 2.05 2.20 0.07
including 18.3 19.8 1.5 4.11 2.80 0.10
------ ----- --------- ----- ------- -----
KX20-12 13.7 16.8 3.0 0.03 20.30 1.39
and 33.5 35.1 1.5 1.99 7.30 0.16
------ ----- --------- ----- ------- -----
KX20-13 0.0 13.7 13.7 0.42 10.19 0.55
and 41.1 44.2 3.0 3.10 2.05 0.03
------ ----- --------- ----- ------- -----
KX20-14 3.0 18.3 15.2 0.51 13.18 1.01
including 13.7 18.3 4.6 1.16 21.43 1.10
------ ----- --------- ----- ------- -----
KX20-15 35.1 36.6 1.5 9.78 1.40 0.01
------ ----- --------- ----- -------
KX20-16 12.2 15.2 3.0 0.08 10.05 1.57
and 27.4 32.0 4.6 2.57 7.43 0.20
including 30.5 32.0 1.5 3.60 7.40 0.16
------ ----- --------- ----- -------
KX20-17 0.0 36.6 36.6 0.18 13.60 0.80
including 18.3 27.4 9.1 0.11 22.32 1.28
and 35.1 36.6 1.5 1.71 14.20 0.67
------ ----- --------- ----- ------- -----
KX20-18 0.0 36.6 36.6 0.39 86.62 1.07
including 12.2 13.7 1.5 2.41 508.00 6.13
including 13.7 15.2 1.5 0.67 218.00 0.02
including 25.9 35.1 9.1 0.51 117.43 1.60
including 33.5 35.1 1.5 1.63 74.20 1.22
------ ----- --------- ----- ------- -----
KX20-19 9.1 12.2 3.0 0.02 10.15 0.69
including 9.1 10.7 1.5 0.23 142.00 1.59
and 22.9 45.7 22.9 1.36 4.68 0.31
including 29.0 30.5 1.5 0.32 95.00 4.01
and 45.7 47.2 1.5 1.80 4.40 0.41
------ ----- --------- ----- ------- -----
KX20-20 16.8 19.8 3.0 0.58 146.80 4.15
and 35.1 36.6 1.5 1.24 34.80 0.49
and 38.1 39.6 1.5 0.25 214.00 2.34
------ ----- --------- ----- ------- -----
Empire Mine Drilling Update
Phoenix has completed a total of 1,658 m of drilling at Empire
in 2020. To date this consists of 1,550 m of RC drilling and 108 m
of diamond drilling. The assays for all drill samples have been
received and will be added to the existing Empire database for use
in estimating an updated resource in early Q4 2020.
Red Star Drilling Update
Phoenix has completed 10 drill holes for a total of 455 m of
HQ-diameter diamond drilling at Red Star thus far in 2020. The
assays for all drill samples have been received. Additional core
drilling is also planned at Red Star following the evaluation of
the first 10 core holes.
Other Results Pending Analysis
There are currently 30 Empire channel samples and 25 Navarre
Creek rock chip samples awaiting assay results. Results from these
samples will be reported as they are received.
Empire Mine - Gold and Silver Resource and Drilling
Programme
In May 2020, an updated NI 43-101 compliant resource was
completed by Hard Rock Consulting 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 mineralisation
identified in the report, as well as targeting areas of Inferred
mineralisation in an attempt to upgrade Inferred to Measured and
Indicated resources.
Red Star - Silver and Lead Resource and Drilling Programme
Red Star is located approximately 330 m north-northwest of the
Empire open pit resource area within the Empire patented claim
boundary. This boundary is contiguous with the Horseshoe Block to
the north and west. A map showing the area can be found on the
Company website at www.phoenixcopperlimited.com in the "News"
section. The Red Star Zone was discovered during field mapping and
reconnaissance of the northern patented claim boundary and adjacent
Horseshoe Block. Channel samples were collected from the Red Star
outcrop itself and results were reported by the Company in October
2018. Three RC drill holes targeting the area at depth were
completed and assay results were published in December 2018. In May
2019, Hard Rock Consulting estimated a maiden Inferred resource at
Red Star of 103,000 tonnes grading 173.4 g/t silver, 0.85 g/t gold,
and 3.85% lead, with minor copper and zinc.
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 / Megan Ray / Rachael Tel: +44 20 7138
(Financial PR) Brooks 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. There are now 411 drill holes
into the Empire oxide zone.
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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