TIDMPXC
RNS Number : 0195R
Phoenix Copper Limited
24 October 2023
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
24 October 2023
Phoenix Copper Limited
('Phoenix' or the 'Company')
Operational Update for Navarre Creek Exploratory Drilling
Additional Claims Added to Navarre Creek Claim Block
Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLF and PXCLY (ADRs)),
the AIM-quoted USA-focused base and precious metals company, is
pleased to provide an update on the 2023 Navarre Creek exploratory
drilling programme in Idaho, USA.
Highlights:
- Assay results from 28 reverse circulation ("RC") drill holes
are currently being assessed and analysed
- Initial analysis of the first seven holes indicates zone of
continuous, low-grade gold mineralisation, open along strike and
down-dip
- 20 additional unpatented mining claims totalling 400 acres
staked on the southwest end of the contiguous Navarre Creek claim
block
- Total Navarre Creek claim block size increased to 3,977 acres (16.09 sq. km)
Ryan McDermott, Chief Executive Officer, said, "We have received
the initial assay results from our 2023 Navarre Creek exploratory
drilling program, the first drilling program to be conducted on the
property. 28 RC holes were completed at four different target areas
within the 3,577-acre claim block. We are currently assessing all
of the results, so that we can put them into context with the
geologic system as we currently understand it. However, gold values
from the first target area, comprised of seven holes along the
strike of the Lehman Creek fault, show a clearly defined low-grade
gold bearing zone that is continuous across each drill hole. The
zone appears to trend off the property to the southwest. As such,
we have added 400-acres of unpatented mining claims to the claim
block on the southwest to ensure control of the property while we
finish our evaluation of the results. The results at the other
target areas are presently under evaluation.
"In addition to the evaluation of the Navarre Creek drilling
results and the additional claim staking, we are also in the
process of updating the Empire mine open pit resource model to
include last year's metallurgical drilling results, finalising
metallurgical testing and completing an updated feasibility study
for the open pit mine, as well as preparing for winter operations
in the Idaho mountains.
"The Empire mine open pit process design and development is well
underway, including the engineering evaluation of the footprint
proposed as the site of the processing facility on the Company's
patented land near the future open pit. The final process design is
critical to the success of the mining operation as it is the step
that ensures maximum metal recovery and maximum revenue. We are
advancing through the engineering studies at a pace reasonable to
maintain the integrity of the final design.
"We will release the results of the Navarre Creek exploratory
drilling once they have been fully evaluated and placed in the
context of the geologic system as a whole, to assist us to
determine the drilling priorities for the remaining 32 holes within
our planned 60 hole RC drilling program and application for
additional drill permitting for the 2024 field season. I understand
that everyone is keenly interested in our progress and I very much
appreciate everyone's patience as we complete all of the work
necessary to maximize the project's economic potential."
Background on Navarre Creek
During the 2021 field season, Phoenix contracted Magee
Geophysical Services to acquire approximately 169 line-km of total
field magnetic measurements at the Company's Navarre Creek project
and SpecTIR, LLC of Reno, Nevada to complete an airborne
hyperspectral survey of the same Navarre Creek area to identify
prospective exploration targets in an area, many of which are
largely concealed by glacial till.
The ground magnetics survey looked specifically for magnetite
and magnetic-bearing minerals, some of which have been identified
in limited outcroppings, while the hyperspectral imaging helps to
identify alteration minerals often associated with precious metal
deposition.
Hyperspectral imaging incorporates a small airplane with mounted
infrared lights and sensors to detect a wide range of wavelengths,
mineral absorption and reflectance within the target area. The
wavelength data collected in this survey are VNIR (Visible and
Near-Infrared), SWIR (Short-Wave Infrared), and LWIR (Long-Wave
Infrared). The human eye can detect wavelengths (colours) from 390
nanometers ('nm') to 700nm. The VNIR and SWIR sensors collected
wavelength data from 390nm to 2,450nm, while the LWIR sensors
ranged from 8,000nm to 12,000nm.
The Navarre Creek project is located within an intrusive dome
complex, where the magnetic components in overlying volcanic
lithologies are destroyed by silicic alteration associated with
steam-heated, acidic, and oxidised hydrothermal fluids. The survey
highlighted several such areas including the Lehman Creek fault,
one or more porphyry plugs, and several contacts/faults.
The survey identified volcanic-associated alteration that is
both acidic and of fairly high temperature as evidenced by
pyrophyllite and dickite. As would be expected in the Challis
Volcanic Field, the white mica is Al-rich (paragenetic) and also
shows zoned crystallinity patterns, typical of intermediate-to-high
sulfidation systems, and is likely proximal to a magmatic heat
source. The presence of iron oxide associated with some of these
zones adds prospectivity. The alteration pattern is useful in
developing an exploration model to optimise future drill
targets.
During the summer of 2020, Konnex Resources' exploration team
previously mapped and sampled the Company's Navarre Creek gold
property, which was then comprised of 2,420 acres of unpatented
mining claims, located approximately 5km north-northwest of the
Empire Mine. 90 rock chip and grab samples were collected in the
hydrothermally altered volcanic rocks that make up the Navarre
Creek claims and sent to ALS Laboratories in Reno, USA for
geochemical analysis.
Of the 90 samples, 53 were above the detection limit for gold
with a high of 0.569 grammes per tonne ('g/t'), and 25 above the
detection limit for silver.
The Navarre Creek claim block now covers 3,977 acres (16.09
km(2)), representing over 6km of prospective strike length,
including an area of secondary alteration thought to be epithermal
in nature, with over 2.5km of highly brecciated, west-trending
jasperoid intersecting argillically and silicically altered Eocene
Challis volcanics.
Qualified Person
The foregoing technical information in this news release has
been reviewed and verified by Dennis Thomas, ACSM, FIMMM, FGS,
CEng, Eurlng, co-founder of Phoenix Copper Limited and Member of
the Company's Advisory Board. Mr. Thomas has held both executive
and non-executive roles in a number of international private and
public natural resources companies and is a chartered mining
engineer from the Camborne School of Mines. He is a Qualified
Person under the AIM Rules and consents to the inclusion of the
information in the form and the 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. 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 Corporate David Hignell / Kasia Brzozowska Tel: +44 20
Finance LLP 3470 0470
(Nominated Adviser)
Tavira Financial Jonathan Evans / Oliver Tel: +44 20
Limited (Joint Stansfield 7100 5100
Broker)
WH Ireland (Joint Harry Ansell / Katy Mitchell Tel: +44 20
Broker) 7220 1666
Panmure Gordon John Prior / Hugh Rich / Tel: +44 20
(UK) Limited Ailsa Macmaster 7886 2500
(Joint Broker)
EAS Advisors Matt Bonner / Rogier de Tel: +1 (646)
(US Corporate la Rambelje 495-2225
Adviser)
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, gold and silver 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
grammes per tonne ("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.
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/t
silver, 0.85 g/t 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 16.09 sq km area. The
Company's total land package at Empire comprises 8,434 acres (34.13
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 a
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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END
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