TIDMPGM
RNS Number : 1434J
Phoenix Global Mining Ltd
03 December 2018
Phoenix Global Mining Ltd
Ticker LSE AIM: PGM, OTCQX: PGMLF / Sector: Mining
3 December 2018
Phoenix Global Mining Ltd
('Phoenix' or the 'Company')
Newly discovered RedStar Zone - drill hole assays include 35.7
ounce per tonne silver and 20% lead. Empire Mine zone - further
assays include 12% copper and 13.8 ounce per tonne silver. More
evidence of regional mineralisation at the Empire Mine in Idaho
Phoenix Global Mining Ltd (AIM: PGM, OTCQX: PGMLF), the North
American-focused base and precious metals exploration and
development company, is pleased to announce further results from
the Company's ongoing drilling programme at the Empire Copper
Project in Idaho, USA (the 'Empire Mine'). The results of the 2018
drilling programme, to date, were published in September and
October, and can be found on the Company's website at
www.pgmining.com.
Programme Highlights
-- RedStar zone,
o Located 330 metres ("m") north-northwest of the Empire open
pit resource shows a transition to a high-grade silver and lead
system
o The old Horseshoe Mine, 1,200 m to the northwest of RedStar
within the 1,837-acre property, operated from 1916 to 1928 with
reported grades of 20% lead and over 100 ounces ("oz") of silver
per tonne
o Three drill holes in October returned assays of 1,111 grams
per tonne ("g/t") (35.7 oz) silver and 20% lead over a 1.5 m
intersection at RedStar
-- Empire Mine zone,
o Drilling in and around the Empire Mine oxidation resource
envelope, which covers a 1 kilometre ("km") strike length and is
the subject of the ongoing feasibility study, returned high grade
copper and silver assay results and continued to confirm the
presence of the underlying sulphide mineralisation
-- Mineralisation is now confirmed to extend along a continuous
3.5 km strike length within the property indicating the presence of
a major mineralised system
-- A map showing the area can be found on the Company's website
at www.pgmining.com in the "News" section
Dennis Thomas, Chief Executive Officer, said, "The drilling
results from the recently discovered RedStar Zone, together with
the surface sampling results reported on 30 October 2018, help
confirm that the Empire mineralised system extends well beyond the
near surface copper-oxide resource which is currently the subject
of our Empire Mine Feasibility Study. The 1,837-acre property is
developing into a district-scale opportunity. Assay results of 360
g/t silver and 9.92% lead over 9.1 m, along with a 1.5 m intercept
of 1,111 g/t silver and 20% lead, confirm the Company's original
hypothesis that the Empire Mine's mineralisation zone is part of a
considerably larger mineralised system which includes the RedStar
Zone and the Horseshoe Block.
"The RedStar Zone and the Horseshoe Block to the north appear to
be the "upper" portion of the whole mineralised system with an
underlying zone of Empire Mine style copper, zinc, gold and silver
mineralisation. The RedStar Zone drilling results, coupled with the
precious and base metal production history in the Horseshoe Mine
itself, are further evidence of the potential existence of a major
orebody along the 3.5 km strike. We have only now begun to
understand the full scale of the opportunity.
"Systematic mapping, sampling and drilling work outside the
oxide resource envelope will certainly continue and we will build
on the latest information from the RedStar Zone to confirm the
continuity of the mineralisation to the north-northwest from the
Empire Mine.
"We believed we would find evidence of additional mineralisation
by continuing exploration along the whole 3,500 m length of known
mineralisation within the property boundary and investigating the
mineralised outcroppings and old workings within this large
mineralised system. The recent RedStar Zone results appear to be
justify our decision.
"Finally, the drilling programme around the oxide resource
envelope at Empire Mine zone continues to return robust results
from both the infill holes and stepout drill holes. Infill holes
are targeted to upgrade and increase resources within the
preliminary pit outline, while step out holes are designed to
expand the resource outline. This drilling will enhance the new
resource estimate scheduled for completion in the first quarter of
next year. High-grade copper and silver assays, most notably 1.37 m
grading 12.05% copper and 444 g/t silver and 49.5 m of 0.57% copper
with 11.74 g/t silver, continue to demonstrate the continuity of
the oxide resource and provide additional evidence for high grade
sulphide at depth.
"We look forward to keeping shareholders updated on our
progress."
Drilling Highlights - RedStar
Silver and Lead Intercepts
o Hole KX18-55: 9.1 m of 360 g/t silver and 9.92% lead
including 1.5 m of 497 g/t silver and 13.30% lead
o Hole KX18-57: 15.2 m of 159 g/t silver and 2.83% lead
including 1.5 m of 1,111 g/t silver and 20% lead
Drilling Highlights - Empire Oxide Resource
Stepout Oxide Copper Intercepts
o Hole KXD18-23: 6.1 m of 0.74% copper equivalent from surface
including 1.5 m of 1.34% copper equivalent from 45.7 m depth
Infill Oxide Copper Intercepts
o Hole KXD18-20: 10.4 m of 1.74% copper equivalent from 32.0 m depth
o Hole KXD18-22 5.9 m of 4.71% copper equivalent from 33.99 m depth
including 1.37 m of 16.06% copper equivalent from 33.99 m depth
and 49.54 m of 1.11% copper equivalent from 80.34 m depth
RedStar Zone
The RedStar Zone is located approximately 330 m north-northwest
of the Empire open pit resource area within the Empire patented
claim boundary. This boundary is contiguous with the Horseshoe
Block to the north and west. A map showing the area can be found on
the Company website at www.pgmining.com in the "News" section. The
RedStar Zone was discovered during field mapping and reconnaissance
of the northern patented claim boundary and adjacent Horseshoe
Block. Channel samples were collected from the RedStar outcrop
itself and results reported by the Company on 30 October 2018.
Three reverse circulation ("RC") drill holes targeting the area at
depth were completed and assay results are presented below. The
presence of high-grade lead and silver is consistent with the
mineralisation expected at the "top" of similar systems that have
not been subject to significant erosion. The RedStar Zone and the
Horseshoe Block appear to be in a down-dropped block of material
similar to the Empire Mine zone but it has resisted erosion due to
the topography. In this scenario, the equivalent copper
mineralisation in the Empire Block may exist below the lead and
silver system in the Horseshoe Block and RedStar Zone.
The Horseshoe Block comprises 944 acres of unpatented claims
contiguous to the Empire property which were staked by Phoenix in
2017 and 2018. The historic Horseshoe Mine is located approximately
1,000 m north of RedStar and approximately 1,330 m north-northwest
of the Empire's North Pit.
Historical production from numerous adits and shafts in the
Horseshoe Block, including the former Horseshoe Mine, Blue Bird
Mine, and White Knob Mine, was predominantly from skarnified
limestone in contact with porphyritic intrusive bodies. Documented
production was predominantly high-grade silver, lead, and zinc
occurring as galena and sphalerite. The White Knob and Blue Bird
Mines produced in excess of 12 million pounds of lead and 300,000
oz of silver prior to WWII with reported average grades of 10 oz
per tonne ("oz/t") of silver and 17% lead. Grades at the Horseshoe
Mine are reported as 20% lead and over 100 oz of silver per
tonne.
RedStar zone Drilling Results
Drill Depth (metres) Composite % g/t ozs/tonne
Hole
----------------- --------------------
Number From To Length Cu Zn Pb Au Ag Ag
(metres)
-------- ------- ---------- ----- ----- ------ -------- ----------
KX18-55 0.00 9.15 9.15 0.43 0.31 0.24 0.03 23.71 0.76
-------- ------- ---------- ----- ----- ------ ----- -------- ----------
and 16.77 25.91 9.15 0.21 0.78 9.92 0.11 360.64 11.59
-------- ------- ---------- ----- ----- ------ ----- -------- ----------
including 19.82 21.34 1.52 0.14 0.42 13.30 0.13 497.20 15.99
-------- ------- ---------- ----- ----- ------ ----- --------
KX18-56 0.00 3.05 3.05 0.21 0.23 0.18 0.74 24.86 0.80
-------- ------- ---------- ----- ----- ------ ----- --------
KX18-57 24.39 39.63 15.24 0.13 1.40 2.83 0.06 159.85 5.14
-------- ------- ---------- ----- ----- ------ ----- --------
including 27.44 28.96 1.52 0.06 0.62 20.00 0.17 1111.00 35.72
-------- ------- ---------- ----- ----- ------ ----- --------
Drilling Update
Phoenix has now completed a total of 8,604 m of drilling at
Empire, consisting of 6,328 m of RC drilling and 2276 m of diamond
drilling. All drill samples have been delivered to the ALS Global
laboratory in Nevada for assay. The drill hole results received to
date from diamond drill holes KXD18-20 through to KXD18-26 and RC
holes KX18-53 through to KX18-57 are shown below. The results from
the Phoenix drilling programme in 2017 and the 2018 results for 47
RC holes and 13 diamond drill holes, published in September and
October, can be found in the Phoenix website at
www.pgmining.com.
The copper equivalent grade ("CuEqu") is calculated based on
metal prices as follows - copper $6,000 per tonne, zinc $2,325 per
tonne, gold $1,200 per oz and silver $14.0 per oz.
Empire Mine Drilling Results
Drill % % Drill
Hole Depth (metres) Composite g/t Hole
----------------- --------------
Length Cu
Number From To (metres) Zn Au Ag CuEqu Type
-------- ------- ---------- ----- ----- ------- ------
KXD18-20 32.07 42.53 10.46 1.20 0.70 0.25 14.72 2 infill
-------- ------- ---------- ------ ----- ----- ------- ------
Including 32.07 36.59 4.51 2.15 1.36 0.10 25.01 2.92 infill
-------- ------- ---------- ------ ----- ----- ------- ------ --------
KXD18-21 0.00 7.93 7.93 0.42 0.30 0.06 12.19 0.67 infill
-------- ------- ---------- ------ ----- ----- ------- ------ --------
KXD18-22 13.78 17.01 3.23 0.86 0.37 0.04 68.37 1.54 infill
-------- ------- ---------- ------ ----- ----- ------- ------ --------
and 33.99 39.94 5.95 3.33 0.16 0.31 147.95 4.71 infill
-------- ------- ---------- ------ ----- ----- ------- ------ --------
including 33.99 35.37 1.37 12.05 0.13 0.98 444.40 16.06 infill
-------- ------- ---------- ------ ----- ----- ------- ------ --------
and 53.66 60.98 7.32 0.31 0.51 1.51 23.76 1.65 infill
-------- ------- ---------- ------ ----- ----- ------- ------ --------
and 80.34 129.88 49.54 0.57 0.82 0.22 11.74 1.11 infill
-------- ------- ---------- ------ ----- ----- ------- ------ --------
including 119.21 123.78 4.57 1.41 0.19 0.40 16.21 1.86 infill
-------- ------- ---------- ------ ----- ----- ------- ------ --------
and 135.03 135.79 0.76 0.29 0.40 0.20 215.60 2.20 stepout
-------- ------- ---------- ------ ----- ----- ------- ------ --------
KXD18-23 0.00 6.10 6.10 0.48 0.08 0.23 10.70 0.74 infill
-------- ------- ---------- ------ ----- ----- ------- ------ --------
and 45.73 47.26 1.52 0.56 1.48 0.03 25.52 1.34 stepout
-------- ------- ---------- ------ ----- ----- ------- ------ --------
KXD18-24 0.00 4.57 4.57 0.59 0.10 0.34 18.15 0.98 stepout
-------- ------- ---------- ------ ----- ----- ------- ------ --------
KXD18-25 21.34 22.87 1.52 0.32 0.20 0.02 9.90 0.49 stepout
-------- ------- ---------- ------ ----- ----- ------- ------ --------
drill hole lost at 13.4
KXD18-26 metres stepout
----------------------------- ------ ----- ----- ------- ------ --------
KX18-53 21.34 22.87 1.52 0.36 0.03 0.29 8.69 0.62 stepout
-------- ------- ---------- ------ ----- ----- ------- ------ --------
KX18-54 4.57 9.15 4.57 0.23 0.43 0.34 22.33 0.78 infill
-------- ------- ---------- ------ ----- ----- ------- ------ --------
and 88.41 89.94 1.52 0.43 0.13 0.35 30.58 0.94 infill
-------- ------- ---------- ------ ----- ----- ------- ------ --------
Other Results Pending Analysis
There are currently seven RC holes awaiting assay results which
should be received later this month and will be reported as soon as
possible.
Qualified Person
Information in this announcement has been reviewed by Roger
Turner ACSM., MSc., MIMMM., CEng., 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
and gold in Canada.
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 a NI
43-101 compliant oxide resource was completed in late 2017. A PEA
(preliminary economic assessment) for an open pit heap leach
solvent extraction and electrowinning ("SX-EW") mine was completed
in April 2018 with a design capacity of 8,000 tonnes of copper
cathode a year. 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"). The lead consultant is RPM Global who are supported
by Samuel Engineering, both based in Denver, Colorado. Cascade
Earth Sciences of Pocatello, Idaho have been working on
environmental and permitting issues since 2016 and form part of the
BFS team. Golder Associates are designing the heap leach pad and
ponds, and Call and Nicholas are carrying out the open pit slope
stability studies.
At Empire, 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. In addition, Phoenix has increased
the claim area from 813 acres at the time of its acquisition to
1,837 acres, mainly to the northwest, and in so doing has increased
the potential for additional oxide and sulphide resources by a
total strike length of approximately 1,500 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.
The Company has also acquired an exclusive option to explore and
develop the Gordon Lake Project, in the Northwest Territories,
Canada, which is 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 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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