TIDMPXC
RNS Number : 7213B
Phoenix Copper Limited
06 June 2023
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
6 June 2023
Phoenix Copper Limited
('Phoenix' or the 'Company')
Preliminary Results of Metallurgical Testing of ATS at the
Empire Mine Project, 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 that preliminary
metallurgical testing of the Empire Mine open pit oxide material
using ammonium thiosulfate ("ATS") as a reagent, has been completed
by Resource Development Inc of Wheat Ridge, Colorado ("RDI"), and
has resulted in robust metallurgical recoveries of copper, gold and
silver.
ATS is considered an environmentally friendly reagent, intended
to replace the use of sulphuric acid and cyanide in the recovery
and processing of copper and precious metals respectively. ATS is
produced and sold in bulk in Idaho, and is commonly used as a
fertilizer for the agricultural sector.
Ryan McDermott, Chief Executive Officer, said, "I am pleased to
report that RDI's laboratories in Colorado have independently
produced robust metal recoveries using representative bulk ore
samples from metallurgical drilling at the Empire Mine open pit
oxide deposit. These are similar to those earlier produced at AuRIC
Laboratories in Salt Lake City, Utah ("AuRIC") using smaller
samples taken from surface trenching. This increases the Company's
confidence that not only does ATS technology work for material
sourced on the surface, but more importantly ATS works with
material representative of the Empire open pit resource as a whole.
We will now focus on optimizing metal recovery balanced with
reagent consumption, and applying appropriate capital and operating
costs to the proposed process design. Assuming the process is
commercially viable, we would then plan to formally incorporate it
into our Plan of Operations for final submission to the regulatory
authorities.
"In addition to positive environmental impacts, this technology
would enable us to recover and process copper, gold and silver in
one process, thus bringing forward the production of precious
metals from the Empire Mine open pit.
"I would also like to confirm that Phoenix has purchased all of
the assets from AuRIC following its closure, including the
analytical equipment and supplies necessary for the onsite
laboratory that will service the Empire Mine once it is in
operation. The purchase of these laboratory assets will prove most
cost effective, saving up to three times as much as the purchase of
new equipment, which is significant in light of the current
market.
"I look forward to reporting further on the results of the ATS
metallurgical program as soon as possible."
Background
In 2020, AuRIC was retained by the Company to evaluate
alternative metallurgical processes, other than conventional
sulphuric acid heap leach SX/EW to recover not only copper, but
also the gold and silver that occurs at the Empire Mine open pit.
Tests by AuRIC, utilising ATS technology, resulted in recoverable
metals, including copper, gold, and silver from test material
sourced through surface trenching at Empire.
Encouraged by these results, the Company's Idaho registered
operating subsidiary, Konnex Resources, performed a metallurgical
core drilling programme in 2022. The goal of this programme was to
produce sufficient material meeting copper, gold, and silver grade
ranges, as well as being 3-dimensionally representative of the
resource, to continue metallurgical testing utilising ATS. The
results of this metallurgical drilling programme were reported on
10 November 2022, 4 January 2023, 12 January 2023 and 16 March
2023, and confirmed the continuity of the open pit mineralisation,
including intercepts of up to 12.8% copper, 269.10 grammes per
tonne ("g/t") silver and 0.75 g/t gold.
In late 2022, the principals of AuRIC elected to retire and
close their business. As a result of this RDI was chosen as a
successor to continue metallurgical testing utilising ATS and to
determine its commercial viability at Empire. Once the final assays
from the 2022 drilling programme were received in mid-March 2023, a
representative bulk sample from the 2022 core was compiled and
transported to the RDI facility for preparation and testing. The
preliminary results of the first trial resulted in robust
multi-metal recoveries, similar to the recoveries that were
produced at AuRIC, and all of which were performed without using
cyanide as a reagent.
The next phase of required testing is the finalisation of the
preliminary results and assessment of metal recovery balanced with
reagent usage. The results of this work will then be applied to a
proposed process design, and the capital and operating costs of the
design, which will ultimately determine the commercial viability of
the process.
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 to
further 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. The Company has
recently published its inaugural Sustainability Report, which can
be viewed on the Company's website.
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 Ryan McDermott Tel: +1 208
Limited Brittany Lock 954 7039
Richard Wilkins Tel: +1 208
794 8033
Tel: +44 7590
216 657
SP Angel (Nominated David Hignell / Kasia Brzozowska Tel: +44 20
Adviser) 3470 0470
----------------------------------- ---------------
Tavira Financial Jonathan Evans / Oliver Stansfield Tel: +44 20
Limited (Joint 7100 5100
Broker)
----------------------------------- ---------------
WH Ireland (Joint Harry Ansell / Katy Mitchell Tel: +44 20
Broker) 7220 1666
----------------------------------- ---------------
Panmure Gordon John Prior / Hugh Rich / Ailsa Tel: +44 20
(UK) Limited (Joint Macmaster 7886 2500
Broker)
----------------------------------- ---------------
EAS Advisors (US Matt Bonner / Rogier de la Tel: +1 (646)
Corporate Adviser) Rambelje 495-2225
----------------------------------- ---------------
BlytheRay Tim Blythe / Megan Ray Tel: +44 20
(Financial PR) 7138 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.
Since 2017, Phoenix has carried out extensive drill programmes
which have defined a NI 43-101 completed PEA (preliminary economic
assessment) for an open pit heap leach solvent extraction and
electrowinning ("SX-EW") mine, which was updated in October 2020.
From the 2020 PEA, the measured and indicated resource is:
22,909,059 tonnes at an average grade of 0.38% copper, 0.324 g/t
gold, 10.3 g/t silver, and 0.19% zinc. The contained metal for the
measured and indicated resource is 87,543 tonnes of copper, 238,406
ounces of gold, 7,595,198 ounces of silver and 43,871 tonnes of
zinc. Phoenix updated its economic model in February 2021 to
include the processing of all contained metals through a two phased
approach.
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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