TIDMPXC
RNS Number : 0263U
Phoenix Copper Limited
31 March 2021
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
31 March 2021
Phoenix Copper Limited
("Phoenix" or the "Company")
Awarding of Contract for Electromagnetic Surveys of Red Star and
Navarre Creek Projects
Exercise of Warrants, Issue of Shares and Total Voting
Rights
Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLF), the AIM quoted
North American focused base and precious metals emerging producer
and exploration company, is pleased to announce that Magee
Geophysical Services ("Magee") of Reno, Nevada, has been appointed
to conduct geophysical surveys at the Company's Red Star
silver-lead project and Navarre Creek gold project. These surveys
will subsequently be processed and analysed to enable the
exploration team to refine future targets for drilling and other
exploration data.
Ryan McDermott, Chief Executive Officer, commented:
"I am pleased to announce that we have appointed Reno-based
Magee Geophysical Services to conduct ground-based electromagnetic
("EM") surveys at our Red Star, Horseshoe and Navarre Creek
properties.
"In November 2020, the Company issued an independent report on
"Geologic Mapping and Structural Analysis in the North Pit Region,
Mackay Mining District" (the "Report") focusing on the Red Star
silver project. The Report confirmed the relationship between
magnetite and the high-grade silver and lead vein system at Red
Star. The Report also suggested the possible extension of the vein
system carrying through to the historically mined Horseshoe and
White Knob mines some 2.5 kilometres to the north. The Horseshoe
and White Knob vein systems are high-grade silver and lead veins
similar in character to Red Star. With the exception of the
discovery outcrop, discernible outcrops of rock at Red Star are
rare and make it difficult to determine the underlying geology. The
same difficulty arises when targeting drill holes.
"We believe that a well-planned EM survey will highlight the
subsurface occurrence of magnetite veins and magnetite bodies,
providing valuable information for further exploration and drill
hole targeting.
"Similar to the Red Star and Horseshoe areas, evidence of
magnetite was discovered during an extensive geological mapping and
sampling programme at our Navarre Creek gold property during the
summer of 2020 and, like Red Star, outcropping of the magnetite
material was rare but evident. For this reason, Magee will also be
conducting a similar EM survey over the Navarre Creek claim
block.
"Additional geophysical techniques and technologies are being
evaluated at this time and may be incorporated into the overall
geophysical programme, including drone-platform surveys.
"I want to highlight the fact that the Company is executing
these field-based programmes using the results from the 2020 field
season and utilising the funding from the recent equity raise. As
always, the Company is putting shareholder dollars to work in
well-planned field programmes that increase the likelihood of
adding shareholder value. I look forward to sharing additional
details of our 2021 programme in the near future."
Magee Geophysical Services are geophysical contractors who
specialise in land gravity and ground magnetic surveys and bring to
the Company over 40 years of international experience in
geophysical contracting. As weather conditions permit, Magee will
commence its programme at the Red Star and Horseshoe projects,
surveying approximately 15.5 line kilometres using Geometrics Model
G-858 Cesium Vapor magnetometers with a measurement resolution of
0.001 nT and a sample interval of two seconds (base and rovers).
The results of the survey will be used to delineate drill targets
for the 2021 diamond core drilling programme. This will be followed
by the survey of approximately 262 line kilometres on the Navarre
Creek project, and to delineate drill targets for the 2021 summer
drilling programme.
Red Star, Horseshoe and Navarre Projects
The Red Star deposit is located approximately 330 metres
north-northwest of the Empire open pit resource area within the
Empire patented claim boundary and was discovered during field
mapping and reconnaissance of the northern patented claim boundary
and adjacent Horseshoe Block. In May 2019, Hard Rock Consulting
estimated a maiden inferred resource at Red Star of 103,000 tonnes
grading 173.4 grammes per tonne ("g/t") silver, 0.85 g/t gold, and
3.85% lead, with minor copper and zinc. In 2020, 10 HQ-core holes
were completed at Red Star. Core holes RSD20-01 through RSD20-04,
and RSD20-06, returned assays of 116.9 g/t (3.76 ounces per tonne
("oz/t")) to 359.8 g/t (11.57 oz/t) silver and lead values from
1.17% to 7.79%, respectively. Further drilling was hampered by
ground cover hiding the skarn deposit, making this difficult to
follow. The present magnetic survey is intended to overcome those
difficulties.
The Navarre Creek claim block to the north west of the Empire
Mine was acquired in 2019 and attracted attention as the geology
appeared to be similar to volcanic hosted gold deposits on the
Carlin Trend in Nevada, home to several multimillion ounce gold
deposits. Of the 90 samples, 53 were above the detection limit for
gold with a high of 0.569 g/t, and 25 were above the detection
limit for silver. The gold grades in these initial geochemical
Navarre Creek samples are anomalously high and indicative of
higher-grade values in less weathered rocks below the surface
oxidised zone. These results are similar to the historic grades
encountered in the early exploration phases of the now multimillion
ounce deposits on the Carlin Trend in Nevada.
Exercise of Warrants, Issue of Shares and Total Voting
Rights
Following a recent exercise of warrants, the Company also
announces that it has issued 106,176 new ordinary shares of no par
value each ("Ordinary Shares") from its block listing authority of
6 October 2020 (the "Share Issue") for a total consideration of GBP
25,730 .
Following the Share Issue, the Company has the ability to issue
a further 7,150,847 Ordinary Shares under its block listing
facility.
The Company's new issued share capital comprises 116,313,396
Ordinary Shares. When calculating voting rights, shareholders
should use this figure as the denominator for the calculations by
which they will determine if they are required to notify their
interest in, or a change in their interest in, the share capital of
the Company under the FCA's Disclosure and Transparency Rules.
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
Limited Dennis Thomas 954 7039
Richard Wilkins Tel: +44 7827
290 849
Tel: +44 7590
216 657
SP Angel (Nominated David Hignell / Caroline Tel: +44 20
Adviser) Rowe 3470 0470
----------------------------------- ---------------
Brandon Hill Jonathan Evans / Oliver Stansfield Tel: +44 20
Capital (Joint 3463 5000
Broker)
----------------------------------- ---------------
WH Ireland (Joint Harry Ansell / Adam Pollock Tel: +44 207
Broker) / Katy Mitchell 2201666
----------------------------------- ---------------
Panmure Gordon John Prior / Hugh Rich / Tel: +44 20
(UK) Limited Ailsa Macmaster 7886 2500
(Joint Broker)
----------------------------------- ---------------
EAS Advisors Matt Bonner / Rogier de la Tel: +1 (646)
(US Corporate Rambelje 495-2225
Adviser)
----------------------------------- ---------------
Blytheweigh Tim Blythe / Megan Ray Tel: +44 20
(Financial PR) 7138 3204
----------------------------------- ---------------
Notes
Phoenix Copper Limited is a North American focused, base and
precious metal emerging producer and exploration company, 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 for all metals.
Present contained metal in all NI 43-101 compliant categories of
resources, measured, indicated and inferred, stand at 355,523
ounces of gold, 129,641 tonnes of copper, 10,133,772 ounces of
silver and 58,440 tonnes of zinc. Following the latest NI 43-101
compliant resource, Phoenix updated its economic model in February
2021 to include the processing of all contained metals through a
two phased approach.
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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