TIDMPGM
RNS Number : 1154Y
Phoenix Global Mining Ltd
07 May 2019
Phoenix Global Mining Ltd / Ticker: AIM:PGM / Sector: Mining
7 May 2019
Phoenix Global Mining Ltd ('Phoenix' or the 'Company')
Substantial increase in copper, zinc, gold and silver
resource
Phoenix Global Mining Ltd (AIM:PGM, OTCQX:PGMLF), the AIM
quoted, North American -focused base and precious metals
exploration and development company, is pleased to announce an
updated Resource for its Empire Copper Mine oxide open pit in
Idaho, USA. The results of the Empire Mine work programme, to date,
were published throughout 2017 and 2018, and can be found on the
Company's website at www.pgmining.com.
Highlights
Based on the work completed over the past 12 months, which
includes 8,604 metres of drilling in 93 holes, the Company has
upgraded the resources at the Empire Mine. The Measured &
Indicated open pit resource at a 0.184% copper cut-off grade,
compared to the April 2018 PEA resource at the same cut-off grade,
has increased as follows: -
-- Measured and Indicated resource - 15.17 million tonnes (April
2018: 10.42 million tonnes) - an increase of 45.6%
-- Copper - 73,872 tonnes (April 2018: 53,755 tonnes) - an increase of 37.4%
-- Zinc - 29,813 tonnes (April 2018: 14,311 tonnes) - an increase of 108.3%
-- Gold - 139,000 ounces (April 2018: 79,000 ounces) - an increase of 75.9%
-- Silver - 6,038,000 ounces (April 2018: 3,560,000 ounces) - an increase of 69.6%
The Company will fast track into production a low capital cost
open pit mine with a planned annual production rate of 8,000 tonnes
of copper and zinc at an average head grade of 0.61% copper.
The Company also reports a maiden inferred sulphide resource at
the recently discovered Red Star Zone averaging 173.4 g/tonne (5.6
ozs) silver, 3.85% lead, 0.33% copper, 0.92% zinc and 0.85 g/tonne
gold.
Dennis Thomas, the Company's CEO, said, "Our goal for the 2018
drilling programme was to increase Measured and Indicated resources
by way of infill drilling to upgrade Inferred resources, and to
increase overall resources by way of a step out drilling programme.
We are excited to have accomplished both. The updated resource
model at a 0.184% copper cut-off grade, as used in our April 2018
Preliminary Economic Assessment, has resulted in a 45.6% increase
in Measured and Indicated tonnes with a 37.4% increase in contained
copper, over 100% increase in contained zinc, 75.9% increase in
contained gold and 69.6% in contained silver, with a combined metal
value at current prices of approximately $800 million. We have an
additional 4.3 million tonnes of Inferred resources, but only
Measured and Indicated resources will be used for the purposes of
completing a Bankable Feasibility Study.
"At a 0.325% cut-off grade, we now have over 10 million tonnes
in the Measured and Indicated category at a copper grade of 0.61%
copper. This will be the corner stone for the development of a low
capital cost fast-track open pit oxide operation, to produce 8,000
tonnes of combined copper and zinc annually. Our team will look to
optimise the project economics as we progress the Bankable
Feasibility Study, as well as evaluating the potential for early
cash flow from the gold and the silver.
"In addition to the Empire resource update, we can also report
the results of our first sulphide inferred resource at the newly
discovered Red Star Zone. Drilled for the first time in 2018, Red
Star is showing an Inferred resource of 103,500 tonnes with an
average grade of 173.4 g/tonne silver, 0.85 g/tonne gold, 0.33%
copper, 3.85% lead, and 0.92% zinc. We look forward to the
continued evaluation of the Red Star Zone, which has all the
makings of a highly profitable mine."
Empire Mine - 2019 Resource
Following the completion of 8,604 metres of drilling on the
Empire Mine in 2018 the resource has been updated and is summarised
below at a 0.184% copper cut-off grade:
2019 Resource Report
Cut-off: Cu >= 0.184%
Average Grade Metal Content
-------------------------- --------------------------------------
CLASS Tonnes Cu Zn Ag Au Cu Zn Ag Au
(x1000) % % g/t g/t tonnes tonnes ozs ozs
----------- -------- ----- ----- ----- ----- ------- ------- ---------- --------
Measured 6,176 0.49 0.21 12.2 0.26 30,419 12,864 2,419,000 51,000
----------- -------- ----- ----- ----- ----- ------- ------- ---------- --------
Indicated 8,993 0.48 0.19 12.5 0.30 43,453 16,949 3,618,000 88,000
----------- -------- ----- ----- ----- ----- ------- ------- ---------- --------
M+I 15,169 0.49 0.20 12.4 0.28 73,872 29,813 6,038,000 139,000
----------- -------- ----- ----- ----- ----- ------- ------- ---------- --------
Inferred 4,271 0.44 0.13 9.8 0.32 18,993 5,449 1,340,000 44,000
----------- -------- ----- ----- ----- ----- ------- ------- ---------- --------
This resource estimation was completed by Hard Rock Consulting
LLC (HRC) and utilised new data from the 2018 infill drilling
programme to augment the previously estimated April 2018
resource.
The 2018 drilling programme comprised 8,604 metres in 93 holes
and was designed to increase Measured and Indicated resources,
provide data for refining the geological model, and to intercept
grade outside of the previously drilled resource.
The HRC report entitled "Summary of Updated Resources for the
Empire Mine Project" by HRC for Konnex Resources (80% Phoenix US
subsidiary) will be available for review on the Company's website
at www.pgmining.com. This report is in imperial units (1 US short
ton = 2,000 lbs, 1 metric tonne = 2,204.6 lbs). HRC estimated the
mineral resource for the Project based on drill hole data
constrained by geologic boundaries with an Ordinary Krige ("OK")
algorithm. Leapfrog Geo V4.4.2 ("Leapfrog") software was used to
complete the resource estimate. HRC tabulated resources for various
cut-off grades including 0.325% copper.
The mineral resources for the Project have been estimated in a
manner consistent with the NI 43-101 Committee of Mineral Reserves
International Reporting Standards ("CRIRSCO") of which both the
Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") and
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (the "JORC Code") are members.
Red Star - Maiden Resource
Three drill holes plus surface sampling were completed on the
newly discovered sulphide occurrence named Red Star. A maiden
resource estimation has been completed by HRC showing:
Average Grade Metal Content
-------------------------------------
CLASS Tonnes Ag Au Cu Pb Zn Ag Au Cu Pb Zn
k g/t g/t % % % oz oz tonnes tonnes tonnes
k k
---------- ------- ------ ----- ----- ----- ----- ---- ---- ------- ------- -------
Inferred 103.5 173.4 0.85 0.33 3.85 0.92 577 2.8 338 3,988 957
---------- ------- ------ ----- ----- ----- ----- ---- ---- ------- ------- -------
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.
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, OTCQX: PGMLF) 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.
Phoenix's flagship project is a brownfield, past producing,
copper, gold, silver, zinc and tungsten underground mine, the
Empire Mine near Mackay in Idaho. Phoenix acquired an 80% interest
in the property in 2015. Based on a total of 315 drill holes an
oxide resource was completed in late 2017. A NI 43-101PEA
(preliminary economic assessment) for an open pit heap leach
solvent extraction and electrowinning ("SX-EW") mine was completed
in April 2018. In June 2018 a campaign consisting of RC and diamond
drilling was started. This programme was 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").
At Empire, it is estimated that only 1 to 2% 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, with the exception of the Red Star discovery "Inferred"
resource, which remains open along strike and does not include the
deeper, higher grade sulphides. In addition, Phoenix has increased
the claim area from 813 acres at the time of its acquisition to
5,717 acres, mainly to the northwest and west, and in so doing has
increased the potential for additional oxide and sulphide resources
by a total strike length of approximately 2,500 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. Fieldwork, consisting of mapping and
sampling and locating drill holes for the 2019 drilling programme,
has been completed.
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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