TIDMPGM
RNS Number : 1729V
Phoenix Global Mining Ltd
01 November 2017
Phoenix Global Mining Ltd / Ticker: AIM:PGM / Sector: Mining
1 November 2017
Phoenix Global Mining Ltd ('Phoenix' or the 'Company')
Robust drill results continue to support an increased copper
resource at the Empire Mine, Idaho
Phoenix Global Mining Ltd (AIM:PGM), the AIM quoted, US-focused
copper exploration and development company, is pleased to announce
further drill results from its recently completed 28 drill hole
reverse circulation ('RC') and diamond drill programme at the
Empire Copper Mine in Idaho, USA (the 'Empire Mine').
Highlights
-- Final batch of drilling results include the following from the AP Pit oxide deposit:
o 6.1m @ 2.08% copper ('Cu'), 79.18 g/t silver ('Ag') and 2.48
g/t gold ('Au') (Cu equivalent grade 4.35%)
o 24.4m @ 1.06% Cu, 34.82 g/t Ag and 0.17 g/t Au (Cu equivalent
grade 1.84%)
o 29.0m @ 0.88% Cu, 46.84 g/t Ag and 0.29 g/t Au (Cu equivalent
grade 1.64%)
-- The second of two diamond drill holes targeting the higher
grade and deeper sulphide mineralisation is underway. The final
depth of the first hole was 314m. Assay results for the two holes
are expected in December 2017
Dennis Thomas, the Company's CEO, said, "The final batch of
drill hole assays from our 2017 oxide drilling program were
received and remain as impressive as the previous results which
were reported on October 5th. Copper intersections include longer
intervals of 24.4m of 1.06% and 29.0m of 0.88% with numerous
shorter intervals as high as 6.26% together with significant gold
and silver. The average grade of the existing JORC resource is
0.53% copper.
"I am also pleased to report that we have completed the first of
two diamond drill holes targeting the deeper sulphides at a depth
of 314m underlying the AP Pit. We anticipate receipt of analytical
data from this deeper hole in December.
"Finally, we continue to be on track to deliver a new JORC
Resource for the AP Pit oxides this month now that all of the
assays have been received."
Drilling Programme
The Company's drilling contractor, AK Drilling Inc., completed
the 28 drill hole programme in the AP Pit oxide deposit in
September 2017. This included 21 reverse circulation drill holes
and 7 PQ and HQ diamond drill holes.
The following is the summary of results from the last 6 of these
28 holes which are PQ and HQ diamond drill holes. The results for
all other holes were included in the Company's October 5(th) 2017
press release. These results, together with all of the historic
drilling results, will now be used by the Preliminary Feasibility
Study (PFS) consultant to complete the new AP Pit oxide resource
calculation.
Hole Intersection % gms / tonne %
Metres
----------- ----------------------- ------------ -------------- --------------
Number From To Interval T Cu Zn Ag Au Cu Equivalent
----------- ----- ----- --------- ----- ----- ------- ----- --------------
KXd17-2 0.0 39.6 39.6 0.85 0.60 25.89 0.18 1.46
----------- ----- ----- --------- ----- ----- ------- ----- --------------
including 7.6 33.5 24.4 1.06 0.84 34.82 0.17 1.84
----------- ----- ----- --------- ----- ----- ------- ----- --------------
including 10.7 13.7 3.0 2.57 0.12 162.50 0.59 4.37
----------- ----- ----- --------- ----- ----- ------- ----- --------------
KXd17-4 0.0 15.2 15.2 1.00 0.07 9.73 0.07 1.16
----------- ----- ----- --------- ----- ----- ------- ----- --------------
including 12.2 15.2 3.0 1.51 0.13 4.65 0.01 1.62
----------- ----- ----- --------- ----- ----- ------- ----- --------------
and 36.6 79.2 42.7 0.62 0.11 15.56 0.21 0.93
----------- ----- ----- --------- ----- ----- ------- ----- --------------
including 53.3 73.2 19.8 0.86 0.12 23.52 0.32 1.31
----------- ----- ----- --------- ----- ----- ------- ----- --------------
KXd17-5 0.0 29.0 29.0 0.88 0.39 46.84 0.29 1.64
----------- ----- ----- --------- ----- ----- ------- ----- --------------
including 25.9 27.4 1.5 6.26 1.13 338.00 0.93 10.21
----------- ----- ----- --------- ----- ----- ------- ----- --------------
KXd17-5A 6.1 9.1 3.0 0.98 0.61 75.60 0.37 2.12
----------- ----- ----- --------- ----- ----- ------- ----- --------------
and 27.4 30.5 3.0 1.31 0.19 78.75 0.43 2.32
----------- ----- ----- --------- ----- ----- ------- ----- --------------
KXd17-6 15.2 18.3 3.0 0.66 0.07 784.70 0.07 7.36
----------- ----- ----- --------- ----- ----- ------- ----- --------------
KXd17-7 9.1 15.2 6.1 2.08 0.09 79.18 2.48 4.35
----------- ----- ----- --------- ----- ----- ------- ----- --------------
including 10.7 12.2 1.5 4.19 0.06 195.00 6.04 9.67
----------- ----- ----- --------- ----- ----- ------- ----- --------------
"Copper Equivalent" is the value of all metals expressed as a
copper grade
Prices (Sept - copper = US$6,850/tonne | zinc = US$3,080/tonne
silver = US$18.00/oz | gold=US$1,340/oz
JORC Oxide Resource for the PFS
The excellent copper grades received from these holes will
enhance the JORC resource, which will be updated now that all of
the assays from the AP Pit drilling programme have been received.
With current zinc, gold and silver prices there is significant
value in these by-product metals. The potential for recovering the
gold and silver from the same heaps when copper recovery is
completed will be investigated.
A key component of the PFS programme is the updated JORC
resource which is on track to be issued this month.
PFS Programme
The consultancy team who are managing the PFS continue to make
good progress with completion of the PFS on track for Q2 2018:
The study consists of the following:
-- Update AP pit oxide resources and mineable reserves
-- Mine plan, production schedule and capital and operating cost estimates
-- Updated metallurgical test work
-- Crush and stack design, heap leach pads, ponds and SX-EW
plant design and capital and operating cost estimates
-- Infrastructure design and costs
-- Water, soil, wildlife and vegetation environmental base line study
-- Project financial analysis and sensitivity analysis
Sulphide Exploration
The Company has commenced the exploration programme on the
deeper sulphide potential resources, where grades of up to 11.4%
copper were recorded during historical underground mining
operations. The first of two diamond drill holes targeting the
sulphide zone below the old workings has been completed from
surface to a depth of 314 metres. A second deep sulphide hole has
been started. All assays from these holes will be received in
December. In the meantime, the opening of two of the adits to gain
access to the old underground workings is progressing. Once
completed, an underground mapping, sampling and drilling campaign
will begin.
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.
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.
**S**
For further information please visit www.pgmining.com or
contact:
Phoenix Global Dennis Thomas & Richard c/o St Brides
Mining Ltd Wilkins Partners
+44 20 7236
1177
--------------------- -------------------------------- --------------
SP Angel Lindsay Mair / Caroline Tel: +44 20
(Nominated Advisor) Rowe 3470 0470
--------------------- -------------------------------- --------------
Brandon Hill Jonathan Evans / Oliver Tel: +44 20
Capital (Broker) Stansfield/ Alex Walker/Robert 3463 5000
Beenstock
--------------------- -------------------------------- --------------
St Brides Partners Charlotte Page / Susie Tel: +44 20
(Financial PR) Geliher 7236 1177
--------------------- -------------------------------- --------------
Notes
Phoenix Global Mining Ltd (AIM: PGM) is a US-focused, base metal
explorer and developer, which is fast-tracking the
historically-producing Empire Mine in Idaho, USA back into
production.
Having established an initial copper oxide JORC resource of
12.8mt grading 0.53% copper ('Cu') for 68,200t contained Cu from
historical drill holes, Phoenix has defined a two-phase development
strategy. Phase One is focused on commencing low cost, open pit
production from the current oxide resource, targeting 7,000t copper
cathode per annum by 2020 via an SX-EW plant. Stage Two will look
to extend the life of mine by targeting the deeper (below c.120m),
higher grade copper sulphides, where intercepts of up to 11.4% Cu
have been recovered. Preliminary Feasibility Study work on the
priority open pit oxide resource is already underway.
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. Furthermore, the Mine has an exploration target of
between 3.4 to 6.7 million tonnes (derived from historic data),
grading 0.34% to 0.50% Cu for 11,560 to 33,500 tonnes of additional
contained copper and there is potential to extract additional
metals, including gold, silver, zinc and tungsten.
The Company also holds two highly prospective cobber-cobalt
properties in Idaho, US, which are located north of the Empire
Mine. These are situated close to the town of Cobalt and are
proximal to projects being advanced by Canadian junior miners,
including eCobalt Solutions and US Cobalt. Early stage exploration
is currently underway and drilling is targeted to commence in
2018.
With a management team that has successfully constructed,
commissioned and operated mines and a low risk, mining-friendly
jurisdiction with excellent infrastructure, Phoenix is looking to
fulfil its ambitions to become a mid-tier base metal producing
company, offering exposure to two high demand technology metals
with compelling demand/supply fundamentals.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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