TIDMPXC
RNS Number : 1240D
Phoenix Copper Limited
26 October 2020
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
26 October 2020
Phoenix Copper Limited
("Phoenix" or the "Company")
Empire Open Pit Mine shows continued increase in gold, silver,
copper and zinc - NI 43-101 Compliant Resource Update
Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLF), the AIM quoted
North American focused base and precious metals company, is pleased
to announce an updated NI 43-101 compliant resource for its Empire
Open Pit Mine in Idaho, USA. The results of the Empire Mine work
programme, to date, were published throughout the period from 2017
onwards, and can be found on the Company's website at
www.phoenixcopperlimited.com .
Highlights
-- Updated NI 43-101 compliant resource reported at the Empire Mine Open Pit
-- 19% increase in the Measured & Indicated resource and a
US$122 million increase in contained metal value at current metal
prices
-- Measured and Indicated resource - 22.9 million tonnes (May
2020: 19.3 million tonnes) - an increase of 19%
o Gold - 238,406 ounces (May 2020: 217,500 ounces) - an increase
of 10%
o Silver - 7.59 million ounces (May 2020: 6.82 million ounces) -
an increase of 11%
o Copper - 87,543 tonnes (May 2020: 81,948 tonnes) - an increase
of 7%
o Zinc - 43,871 tonnes (May 2020: 37,650 tonnes) - an increase
of 17%
-- Updated resource established following a 32-hole drilling
programme, at a direct cost of less than US$300,000, and
representing 7% of a total of 445 drill holes in the current
resource model
-- An updated Preliminary Economic Assessment underway for the
Empire Mine Open Pit project based on this resource update and
recent environmentally friendly metallurgical test work
Ryan McDermott, Chief Executive Officer, commented: "Following
the completion of our latest 32-hole drilling programme that was
focused primarily on increasing gold and silver resources, as well
as converting the existing Inferred resources to Measured &
Indicated (M&I) resources, I am pleased to report a 19% overall
increase in the M&I resource from May 2020, which includes the
addition of 20,906 gold ounces, 770,738 silver ounces, 5,595 tonnes
of copper, and 6,221 tonnes of zinc. This increased measured and
indicated metal resource equates to 172,912 copper equivalent
tonnes, which is an increase of over US$122 million in gross metal
value at US$3.00/lb copper, compared to the May 2020 M&I
resource of 154,502 copper equivalent tonnes at the same copper
price. This increase in gross metal value alone equates to over
three times our current market capitalisation. Considering the
relatively inexpensive cost of the 32-hole drilling programme, at
less than US$300,000, I would venture to say that we have received
great value for the money spent. In fact, since declaring our
maiden resource in 2017, we have increased our M&I tonnage by
220% and the contained metals substantially.
"In this updated resource estimation, Hard Rock Consulting
("HRC") modelled the various mineralised trends separately so that
substantial gold and silver grades could stand on their own and not
be subjected solely to the surrounding copper values. This resulted
in a larger overall pit shell that is inclusive of significantly
more metal. The Phoenix team continues with the metallurgical
evaluation of process designs for the polymetallic ore with the
objective of maximising the recovery of copper, zinc, gold and
silver, versus the alternative of processing oxide-copper ore and
taking the other metals simply as by-products from the oxide copper
processing.
"Including the Inferred resources, we now have 129,641 tonnes of
copper, 58,440 tonnes of zinc, 10,133,772 ounces of silver and
355,523 ounces of gold.
"I look forward to reporting the results of the 2020 Empire
Preliminary Economic Assessment, which will be completed by HRC and
is currently under way."
Empire Mine -October 2020 Resource Update
In May 2020, an NI 43-101 compliant resource for the Empire
polymetallic open pit was generated for an agitation tank leach
plant to recover gold and silver using ammonium thiosulfate ("ATS")
leach, followed by copper and zinc tank leach in the same circuit.
The current gold and silver price performance, coupled with the
more environmentally friendly sodium cyanide alternative ATS, has
provided an opportunity to expand the Empire resource base to
include all metals.
Using the same modelling parameters used in the May 2020
resource update and adding the assays from the recent 32-hole
drilling programme, HRC estimated this updated NI 43-101 compliant
resource using the value of all gold, silver, copper and zinc in
the deposit using a cut-off grade of 0.292% copper equivalent
oxide, and 0.497% copper equivalent sulphide, compared with the May
2020 resource at a copper equivalent only cut-off of 0.36%, is
tabulated as follows: -
Mineral Resource Statement for Empire Mine, after Hard
Rock Consulting October 2020
CLASS Tonnes Cu Average Grade Metal Content
Equiv
%
---------------------------
Cu Zn Ag Au Cu Zn Ag Au Cu
Equiv
% % g/t g/t tonnes tonnes ozs ozs Tonnes
Measured 8,289,719 0.81 0.42 0.22 11.4 0.327 34,655 18,160 3,031,791 87,036 67,013
----------- ----- ----- -------- ----------
Indicated 14,619,340 0.72 0.36 0.18 9.7 0.322 52,888 25,711 4,563,407 151,370 105,899
M+I 22,909,059 0.75 0.38 0.19 10.3 0.324 87,543 43,871 7,595,198 238,406 172,912
------------ ----- ----- -------- ----------
Inferred 10,612,556 0.75 0.40 0.14 7.4 0.343 42,098 14,569 2,538,574 117,117 79,296
----------- ------------ ----- ----- -------- ---------- ---------
Mineral Resource Statement for Empire Mine, after Hard
Rock Consulting May 2020
CLASS Tonnes Cu Average Grade Metal Content
Equiv
%
---------------------------
Cu Zn Ag Au Cu Zn Ag Au Cu
Equiv
% % g/t g/t tonnes tonnes ozs ozs Tonnes
Measured 6,389,000 0.82 0.46 0.22 11.8 0.315 29,134 14,184 2,423,810 64,703 52,408
----------- ----- ----- -------- ----------
Indicated 12,913,000 0.79 0.41 0.18 10.6 0.368 52,814 23,502 4,400,649 152,797 102,094
M+I 19,302,000 0.80 0.42 0.20 11.0 0.351 81,948 37,685 6,824,460 217,500 154,502
------------ ----- ----- -------- ----------
Inferred 10,544,000 0.81 0.46 0.12 7.9 0.368 47,975 12,864 2,678,035 124,749 85,043
----------- ------------ ----- ----- -------- ---------- ---------
The HRC report entitled "October 2020 Resource Updated for the
Empire Mine Project" for Konnex Resources (Phoenix's 80% owned US
operating subsidiary) will be available for review on the Company's
website at www.phoenixcopperlimited.com within 45 days of the
issuance of this news release. This report will be 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
algorithm. Leapfrog Geo V4.4.2 software was used to complete the
resource estimate.
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.
An updated Preliminary Economic Assessment for the Empire Mine
Open Pit Project based on this updated resource and revised
processing methods will follow in due course.
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 (Financial Tim Blythe / Megan Ray Tel: +44 20 7138
PR) 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 2020 and October 2020.
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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