TIDMPXC
RNS Number : 8872V
Phoenix Copper Limited
12 April 2023
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
12 April 2023
Phoenix Copper Limited
('Phoenix' or the 'Company')
2022 Red Star Exploration Drilling Results at the Empire Mine,
Idaho
Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLY), the AIM-quoted
USA-focused base and precious metals emerging producer and
exploration company is pleased to report the assay results from the
Red Star exploration drilling at its Empire Mine in Custer County,
Idaho, USA (the 'Empire Mine'). In total, 268 metres ('m') of
reverse circulation ('RC') drilling was completed in late 2022 and
will provide samples and technical information for geological and
resource modeling.
Significant drill results are listed in Table 1, including the
following highlights:
Hole RS22-01
o 1.52 m of 1.44% lead, 19.9 grammes/tonne ('g/t') silver, 565
parts per million ('ppm') molybdenum starting at 30.48 m.
Hole RS22-02
o 7.62 m of 0.36% copper, 142.7 g/t silver, 2.94% lead, and
1.54% zinc starting at 32.00 m.
o Including 1.52 m averaging 1.01 g/t gold, 332 g/t silver,
1.35% copper, 2.18% lead, 1.39% zinc and 156 ppm molybdenum from
33.53 m.
o Including 6.10 m averaging 175.3 g/t silver, 3.68% lead and
1.89% zinc from 33.53 m.
Hole RS22-03
o 3.05 m of 0.53 g/t gold and 0.21% copper starting at 3.05
m.
o Including 1.52 m averaging 0.87 g/t gold, 0.28% copper from
4.57 m.
Hole RS22-04
o 9.15 m of 1.56 g/t gold and 0.32% copper starting at 1.52
m.
o Including 1.52 m averaging 0.62 g/t gold, 42.7 g/t silver and
0.64% copper from 3.05 m.
o Including 1.52 m averaging 7.59 g/t gold and 0.58% copper from
9.14 m.
Ryan McDermott, Chief Executive Officer, said, "I am pleased to
report the assay results from the Company's 2022 reverse
circulation drilling program at Red Star.
"The drilling targeted the boundaries of the magnetic anomalies
identified in the 2021 ground magnetics survey, with the aim of
further define the extents of those anomalies and to provide depth
and geometry to the mineralized subsurface. The results continue to
build on our understanding of the Red Star/North Pit area, and
further demonstrate the extensive polymetallic mineralization at
Empire.
"Holes RS22-02 and RS22-04 show robust metal values consistent
with the results of previous drilling in the area. Hole RS22-02
includes 4.99 feet (1.52 m) grading 1.01 g/t of gold, 332 g/t
silver, 1.35% copper, 2.18% lead, 1.39% zinc and 156 ppm
molybdenum. Hole RS22-04 also returned robust metal values,
including 4.99 feet (1.52 m) of 7.59 g/t gold and 0.58% copper.
"While we were only able to complete 268 m of drilling due to
the limited availability of the drill rig, the data and results
that we collected have added significantly to our understanding of
the mineralization and the boundaries of the magnetic anomalies and
will aid in future drilling, modeling and ultimately updating of
the resource.
"It is important to understand that the drilling results seen
thus far in the Red Star area are indicative of higher-grade,
narrow vein mineralization which may best lend itself to
underground mining methods. Conversely, the longer and lower grade
drilling intercepts in the Empire open pit area lend themselves to
bulk tonnage, open pit mining methods. The close proximity of both
styles of mineralization speaks volumes about the potential size
and complexity of the Empire system."
Background
In 2018, exploratory drilling at Red Star, located approximately
330 m northwest of the Empire Mine proposed open pit, intercepted a
near-surface high-grade silver and lead zone. In 2019, a maiden
inferred resource of 103,000 tonnes containing 173.4 g/t silver,
0.85 g/t gold and 3.85% lead (1.6 million ounces silver equivalent)
was reported at Red Star in the Company's NI 43-101 technical
report. A ground magnetics survey was conducted in the area during
the 2021 field season to help identify the possible location of
mineralized structures below the vegetative cover. The survey
identified three subsurface magnetic anomalies east of the Red Star
discovery outcrop. In response to those findings, seven RC drill
holes were completed that year in various locations throughout the
anomalous zones. The results of the 2021 RC drilling campaign
confirmed magnetite-related mineralisation focused along several
northerly trending structures. The Red Star mineralisation appears
as discrete zones plunging steeply to the east along the structures
mapped in the geophysical survey, similar to the well-understood
magnetite zones encountered in the open pit area on the southern
end of the project.
The 2022 RC drilling programme targeted the extensions of these
structures. This effort was part of a larger plan to gather
geochemical data and better understand the boundaries and
characteristics of the magnetic anomalies. The geological
structures in the area can be challenging to drill because of the
highly variable material they contain and the steep topography
typical of the area. The geological formations in the area consist
of a mix of hard garnet skarn and granite porphyry, as well as
softer and more friable material. Due to this variation in
material, drilling progress can be slow in order to maintain a high
quality of samples.
Table 1 - Red Star Drilling Results
Drill Intersection Metres g/tonnes % % % ppm ppm
Hole
Number From To Interval* Au Ag Cu Pb Zn Mo W
------ ------ ---------- ----- ------ ----- ------ ----- ----- -----
RS22-01** 30.48 32.00 1.52 0.05 19.9 0.02 1.440 0.07 565 20
------ ------ ---------- ----- ------ ----- ------ ----- ----- -----
RS22-02*** 32.00 39.62 7.62 0.42 142.7 0.36 2.940 1.54 74.6 52
------ ------ ---------- ----- ------ ----- ------ ----- ----- -----
including 33.53 35.05 1.52 1.01 332 1.35 2.180 1.39 156 70
------ ------ ---------- ----- ------ ----- ------ ----- ----- -----
35.05 36.58 1.52 0.15 116 0.11 3.010 2.31 36 60
------ ------ ---------- ----- ------ ----- ------ ----- ----- -----
36.58 38.10 1.52 0.29 119 0.05 4.710 2.06 33 60
------ ------ ---------- ----- ------ ----- ------ ----- ----- -----
38.10 39.62 1.52 - 134 0.07 4.800 1.78 139 40
------ ------ ---------- ----- ------ ----- ------ ----- ----- -----
RS22-03 3.05 6.10 3.05 0.53 11.4 0.21 0.007 0.19 2 12.5
------ ------ ---------- ----- ------ ----- ------ ----- ----- -----
including 4.57 6.10 1.52 0.87 18 0.28 0.007 0.16 2 5
------ ------ ---------- ----- ------ ----- ------ ----- ----- -----
RS22-04 1.52 10.67 9.15 1.56 15.8 0.32 0.004 0.02 2.3 5
------ ------ ---------- ----- ------ ----- ------ ----- ----- -----
including 3.05 4.57 1.52 0.62 42.7 0.64 0.009 0.03 3 5
------ ------ ---------- ----- ------ ----- ------ ----- ----- -----
including 9.14 10.67 1.52 7.59 22.5 0.58 0.005 0.03 2 5
------ ------ ---------- ----- ------ ----- ------ ----- ----- -----
* Length along hole (not necessarily equivalent to true
width).
**RS22-01 was terminated due to the hole collapsing. RS22-01A
was collared and redrilled approximately 10 feet to the southwest
of the original hole. RS22-01A did not have any significant
intervals to report.
***RS22-02 sample starting at 38.10 m did not have sufficient
material for an Au assay after the completion of multi-element
digest and over limit assays.
Red Star geomagnetic survey and drill hole locations.
Assay Quality Control
All RC chips are logged by Konnex personnel at Phoenix's drill
core facility located in Mackay, Idaho, USA. The RC chips are split
at the drill rig. One half is sent to a commercial laboratory for
assaying, and the other half is kept for future reference. A strict
QA/QC programme is in place by integrating duplicates, blanks, and
certified reference standards into the RC sample sequence.
Qualified Person
The foregoing technical information in this news release has
been reviewed and verified by Zachary J. Black, SME-RM. 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 it
appears.
Reverse Circulation (RC) drilling was conducted by Midnight Sun
Drilling, Whitehorse, Yukon Territory, Canada, and was supervised
by the Konnex exploration team. All assays reported are uncut
unless otherwise stated. Samples reported herein were assayed by
ALS USA, Inc. of Reno, Nevada which is independent of Phoenix. All
Reverse Circulation assays reported were obtained using a four-acid
digestion and ICP-AES finish with overruns completed on values
exceeding 10,000 ppm for Cu, Zn, and Pb and 100 g/t for Ag. The
only exception being that Au assays reported were obtained using a
fire assay with AA-finish or using gravimetric finish for values
over 100 g/t Au.
Intercepts cited do not necessarily represent true widths,
unless otherwise noted, however, drilling is generally intersecting
interpreted mineralized zones at angles between +/-30deg. True
width determinations are not estimated due to the irregular shape
of the skarn mineralization.
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 Company deems the information contained within this
announcement 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 the 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
Brittany Lock 7039
Richard Wilkins Tel: +1 208 794
8033
Tel: +44 7590
216 657
SP Angel (Nominated David Hignell / Kasia Brzozowska Tel: +44 20 3470
Adviser) 0470
------------------------------------ -----------------
Tavira Financial Jonathan Evans / Oliver Stansfield Tel: +44 20 7100
Limited (Joint Broker) 5100
------------------------------------ -----------------
WH Ireland (Joint Harry Ansell / Katy Mitchell Tel: +44 20 7220
Broker) 1666
------------------------------------ -----------------
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
------------------------------------ -----------------
BlytheRay Tim Blythe / Megan Ray Tel: +44 20 7138
(Financial PR) 3204
------------------------------------ -----------------
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.
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. Phoenix updated its economic model in February 2021 to
include the processing of all contained metals through a two phased
approach.
Since 2017, Phoenix has conducted extensive drilling programmes
to define the potential of an open-pit heap leach SX-EW mine. In
October 2020, a Preliminary Economic Assessment was completed in
accordance with NI 43-101. The 2020 PEA reports the measured and
indicated resource at 22.9 million tonnes at an average grade of
0.38% copper, 0.324 g/t gold, 10.3 g/t silver, and 0.19% zinc, with
a total of 87,543 tonnes of copper, 238,406 ounces of gold,
7,595,198 ounces of silver, and 43,871 tonnes of zinc.
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
maiden inferred resource of 103,000 tonnes containing 173.4 g/tonne
silver, 0.85 g/tonne gold and 3.85% lead (1.6 million ounces silver
equivalent) was reported in an NI 43-101 technical report published
in May 2019. Additionally, the district includes Navarre Creek, a
volcanic hosted precious metals target in a 14.48 sq km 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 Electra Battery Materials, Toronto, in respect of one
of those properties.
Phoenix is listed on London's AIM (PXC), and trades on New
York's OTCQX Market (PXCLF and PXCLY (ADRs)). 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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