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RNS Number : 7726R
Phoenix Global Mining Ltd
19 June 2018
Phoenix Global Mining Ltd / Ticker: AIM:PGM / Sector: Mining
19 June 2018
Phoenix Global Mining Ltd ('Phoenix' or the 'Company')
2018 Empire Mine Project Feasibility and Step Out Drilling
Commences, Followed by Exploration Stage Drilling in Newly Acquired
Horseshoe Block
Phoenix Global Mining Ltd (AIM:PGM.L), the AIM quoted North
American-focused base and precious metals exploration and
development company, is pleased to announce that it has commenced
an ambitious and highly targeted drilling programme in connection
with the preparation of the Bankable Feasibility Study (BFS) for
the Empire Mine open pit, and to build additional copper resources
around the open pit resource at the Empire Mine. The latter will
involve step out drilling and a maiden drill programme at the
Horseshoe Block, which the Company acquired in 2017 and sits
immediately along the northern boundary of the open pit at the
Empire Mine.
Highlights
-- Five drill rigs to drill a total of 40,000 feet
-- BFS drill programme underway
-- Pit step out drilling planned
-- Maiden exploration drill programme at the Horseshoe block
The Empire Mine - BFS Drilling
The BFS drilling programme at the Empire Mine in Idaho commenced
on 1 June 2018 with the collaring of both reverse-circulation (RC)
and core holes by AK Drilling of Butte, Montana. AK Drilling
completed the PEA-level drilling at Empire in 2017.
During the course of the 2018 drilling programme, five drill
rigs will be used to complete the following work for the purposes
of the BFS:
-- increasing the open pit resource
-- infill drilling to upgrade the existing inferred resources
-- core drilling for metallurgical samples
-- geotechnical drilling for open pit slope-stability data
-- hydrological testing.
The data collected will be used for the BFS on the open pit of
the Empire Mine which the Company expects to be published in Q2
2019.
Step out Drilling at the Empire Mine and the first drill holes
at the Horseshoe Block
The Company has commenced its step out drilling programme around
the existing open pit at the Empire Mine and will undertake its
maiden drill programme on the Horseshoe Block (which sits to the
north of the open pit at the Empire Mine). Most of the recorded
production from the Horseshoe area was from the former Horseshoe
Mine, with the last shipment of 2,900 tons of ore in 1979 with
grades averaging 3.8% copper and 12% zinc. The 2018 programme will
consist of RC and HQ diamond holes.
Dennis Thomas, the Company's CEO, said, "We are pleased to
commence our BFS drill programme and our excellent relationship
with AK Drilling has allowed us to secure a drilling fleet
sufficient to complete all of the work necessary for the BFS in one
season. Also, this allows us to dovetail a step-out and exploration
drilling programme using the same rigs as they complete the
feasibility work on the Empire Mine. We are confident that we can
continue to build value for shareholders by drilling for additional
copper resources through stepping out at the open pit and putting
the first holes into the Horseshoe Block where some very
interesting copper grades have been mined historically. We have a
total of 40,000 feet (12,100 metres) of drilling planned and we
look forward to updating the market throughout the drilling season
as laboratory and testing results become available."
Historical Production
Historical production from numerous adits and shafts in the
Horseshoe Block, including the former Horseshoe Mine, was
predominantly from skarnified limestone in contact with porphyritic
intrusive bodies. Mineralization is documented as predominantly
galena and chalcopyrite, with minor pyrrhotite. Mining in the area
dates back to the early 1900s and records indicate production as
recently as 1979.
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.
**ENDS**
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
(Nominated Adviser 3470 0470
and Joint Broker
----------------------------------- ------------------
Brandon Hill Capital Jonathan Evans / Oliver Stansfield Tel: +44 20
(Joint Broker) 3463 5000
----------------------------------- ------------------
Notes
Phoenix Global Mining Ltd (AIM: PGM) 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
and gold in Canada.
Having established an initial copper oxide JORC and NI 43-101
resource of 19.4 mt grading 0.47% copper ('Cu') for 90,547 t
contained Cu, plus zinc, gold and silver, 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 8,000t copper cathode per annum. 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 Economic Analysis 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.
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 US Cobalt. Exploration will continue during 2018 to
identify drilling targets.
The Company has also acquired an exclusive option to explore and
develop the Gordon Lake Project, in the Northwest Territories,
Canada, a high-grade shear hosted gold project comprising of 17
known mineralised zones of which only four have been tested with 59
diamond drill holes. The Company will proceed to examine the
optimal way forward to develop the project as a low-cost
underground gold producer.
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 and precious metals
producing company, offering exposure to three high value and high
demand metals with compelling demand/supply fundamentals.
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London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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