TIDMPXC
RNS Number : 5834P
Phoenix Copper Limited
20 October 2021
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
20 October 2021
Phoenix Copper Limited
('Phoenix' or the 'Company')
Red Star Ground Magnetics Survey significantly expands Red Star
high-grade silver / lead potential
Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLF), the AIM quoted USA
focused base and precious metals emerging producer and exploration
company, is pleased to provide the results from the ground
magnetics survey at the Company's Red Star project in Custer
County, Idaho, USA.
Red Star is located 330 metres northwest along strike from the
present northern limits of the proposed Empire Mine open pit and
appears to be part of the same mineralised system. Three holes
drilled in 2018 generated a maiden NI 43-101 compliant resource of
1.6 million silver equivalent ounces, with silver grades as high as
1,100 g/tonne ("g/t") and lead grades above 21%. An additional 10
holes were drilled in 2020. The Company commissioned a ground-based
magnetics geophysical survey to better understand the nature and
orientation of potential mineralisation and to inform the location
and direction of a further drilling programme.
Highlights
-- Four high-amplitude areas of interest have been identified,
including the discovery outcrop that was drilled in 2018 and
2020;
-- The size and amplitude of the three new areas of interest
appear to be significantly greater than that of the discovery
outcrop, which generated a maiden resource in 2018;
-- Further north-northeast magnetic anomalies trending from the
Red Star discovery outcrop also identified;
-- The survey results will be used to guide the location and
direction of the upcoming drill programme at Red Star;
-- Further survey results are awaited for the Horseshoe-White
Knob area to the north, and the Navarre Creek gold project.
Ryan McDermott, Chief Executive Officer, said, "I am pleased to
report the findings from the ground magnetics survey at our Red
Star high-grade silver-lead project. The highlight was the
discovery of three new high-amplitude magnetic anomalies.
"The size and amplitude of the three new anomalies are
significantly greater than that of the discovery outcrop which
generated the initial maiden resource for Red Star. These new
discoveries exhibit a dynamic range of magnetic response as high as
26,412 nanoteslas ("nT") of magnetic relief. This magnetic response
is considered extreme when compared to similar surveys in other
locations and is not commonly observed. It suggests strong
magnetite / magnetic mineralisation. Understanding these three new
anomalies better is now a priority and will be the focus of
additional drilling.
"The survey also identified a trend of lesser magnetic anomalies
which roughly parallels the patented claim boundary, trending off
the patented claims to the northeast. This is the same trend that
was targeted in 2020 using float and sub-crop geochemistry, and
will also be the subject of future drill targeting.
"The Red Star drilling program is planned to expand the NI
43-101 compliant 2018 maiden resource of 103,500 tonnes, which
resulted from the 2018 drilling. The maiden resource contains 1.6
million silver equivalent ounces, with silver grades as high as
1,100 g/t (32 ounces / tonne) and lead grades above 21%.
Approximately 3,000 meters of new drilling has been budgeted at Red
Star and Horseshoe and is currently being targeted using the recent
magnetics data, as well as existing geological and geochemical
information.
"The ground magnetics survey in the Red Star area also included
the magnetics surveying of the Horseshoe-White Knob area to the
north, as well as the Navarre Creek gold project. The final reports
for Horseshoe-White Knob and Navarre Creek are still in process and
have not yet been received by the Company. The Horseshoe-White-Knob
report will be important as we believe that area is similar in
geology and geochemistry to the Red Star area. The Company will
post the Red Star and Horseshoe-White Knob Magnetics Survey Report
to our website as soon as the Horseshoe-White Knob portion of the
report is received from the geophysical consultant.
"In addition to our examination of the magnetics survey results,
the Phoenix team continues engineering for the feasibility study of
the Empire Open-Pit Copper Oxide deposit, including final slope
stability, metallurgical recovery and design, general arrangement
layout, and hydrological characterization in the leach pad area.
Meanwhile we also await further assay results from the drilling
completed thus far in 2021.
"Whilst the Phoenix team remains healthy and productive,
Covid-19 related delays in the shipping of parts and materials, as
well as the contact tracing quarantine requirements, have delayed a
number of our contractors, vendors and suppliers. We are encouraged
by the magnetic survey results received to date and are continuing
our exploration programs as quickly as we can. We appreciate
everyone's patience and look forward to reporting additional
information and data as soon as it is received."
Red Star and Horseshoe-White Knob Projects
Phoenix drilled three holes at Red Star in 2018 and an
additional 10 holes in 2020. The results of both drilling
programmes were promising. The 2018 programme resulted in a NI
43-101 compliant maiden resource of 1.6 million silver equivalent
ounces , with silver grades as high as 1,100 g/t (32 oz/t) and lead
grades above 21%. The geological and mineralogical complexity of
the project area, coupled with the lack of discernible outcrop,
created challenges for effectively targeting additional core holes.
As a result, Dr. David W. Rodgers, a Ph.D. structural geologist and
Idaho State University geology professor, was hired to complete
high-resolution mapping of the project area and to assess the
mineralogical characteristics of the deposit.
Following detailed surface mapping of the Red Star project area,
which included some work southward toward the Empire Mine and
northward toward the historic White Knob and Horseshoe Mines, as
well as detailed analysis of the Red Star core and drill cuttings,
Dr. Rodgers concluded that higher grade silver and lead
mineralisation occurs primarily in the contact region between the
Mackay Granite formation and the White Knob limestone formation.
This is important in that mineralisation does not occur between
these two formations elsewhere in the main Empire Mine area.
Furthermore, Dr. Rodgers concluded that the higher-grade silver
mineralisation was focused in areas within the magnetite-bearing
skarn that had been subjected to a superimposed event, possibly
highly acidic, wherein the later-stage silver-bearing fluids
leached the magnetite skarn. Because the silver mineralisation only
occurs in iron-rich portions of the skarn, which are dominated by
magnetite, then those areas near the contact of Mackay Granite and
White Knob limestone with magnetite development are thought to be
favorable targets for higher grade silver.
Due to the lack of discernible outcrop at Red Star, it is
difficult to determine the underlying geology, Dr. Rodgers
recommended the use of ground magnetic surveying, coupled with
geologic mapping, to better define future drilling targets.
The historically mined high grade Horseshoe and White Knob claim
blocks produced average grades of 204 g/t silver, 19% lead, 6.5%
zinc and 0.73% copper. In 2018, Phoenix collected rock chip and
channel samples from the Horseshoe Mine claim block. The results of
the sampling programme were reported in October 2018 and showed
results as high as 9.19% copper, 580 g/t silver, and 20% lead. This
clearly opens up another significant prospect within the Empire ore
system. During the construction of the Empire open pit copper/gold
project the Company will continue to actively explore the Red Star
and related area, with a view to early development of this exciting
opportunity.
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
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Brandon Hill Capital Jonathan Evans / Oliver Stansfield Tel: +44 20 3463
(Joint Broker) 5000
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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
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Blytheweigh Tim Blythe / Megan Ray Tel: +44 20 7138
(Financial PR) 3204
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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 our extensive drill programmes
which have defined a NI 43-101 compliant PEA (preliminary economic
assessment) 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
NI 43-101 compliant maiden resource of 1.6 million silver
equivalent ounces was reported. Additionally, the district includes
Navarre Creek, a volcanic hosted, Carlin-type gold discovery which
hosts a 6.1 km gold strike length within 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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