REG - Phoenix Copper Ltd - Operational Update

Phoenix CopperAnnouncement

18/01/2024 07:00

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RNS Number : 0744A  Phoenix Copper Limited  18 January 2024

 

Phoenix Copper Limited / Ticker: PXC / Sector: Mining

18 January 2024

Phoenix Copper Limited

('Phoenix' or the 'Company')

 

Operational Update

 

Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLY), the AIM-quoted USA-focused base
and precious metals emerging producer and exploration company is pleased to
provide an update on the Company's operations in Idaho, USA.

Highlights:

 

-      Pre-Feasibility Study ("PFS") for the proposed Empire Open-Pit
copper, gold, and silver deposit nearing completion

 

Ryan McDermott, CEO of Phoenix Copper Limited, said: "I am pleased to provide
an update regarding the ongoing work on our Empire Open-Pit Mine project in
Idaho.  The PFS for the Empire Open-Pit Mine is nearing completion, and
barring any unforeseen delays is anticipated for delivery to the Company by
early Q2 2024. The final PFS report will include a comprehensive mine plan,
mineral processing design, compliant mineral reserves calculated as
deliverable metal for smelting or refining, net of mining dilution, detailed
operating and capital cost estimates, and final economic analysis and
cashflow. The completion of this report will represent a significant milestone
for the Company and will enable us to make final amendments to the Plan of
Operations for permitting purposes, and to commence procurement of certain
relevant capital equipment items.

"The critical part of the Empire Open-Pit PFS process has been to test the
viability of a variety of mining and processing options, optimize multiple
options, and conduct numerous checks on laboratory and engineering findings to
help ensure that we have maximum flexibility prior to moving forward with the
final stages of development engineering. This PFS process has been "result"
oriented.  In these types of studies, the initial results and findings can
often lead to further studies, all helping to ensure that the final plans are
as robust as possible.

"The Company endeavors to meet the timelines it develops for itself and
shareholders.  It is of particular importance to me that everyone understands
that the nature of the studies we undertake to ensure the best mining and
production outcomes can be time-consuming and not always predictable. I
appreciate everyone's patience as we complete each step of the PFS. Mining is
a long-term, capital-intensive business, and we believe the time spent on
optimizing the mine plan and processing design at this stage can bring
significant financial benefits to the project over the life of the mine.

"I would also like to provide an update on the Navarre Creek gold exploration
program.  As we reported in October 2023, 400 acres of additional unpatented
mining claims were staked contiguously to the southwest end of our existing
claim block following our initial review of the results from the 2023 drilling
program. Since that reporting, the Phoenix team has been focused entirely on
the analysis and engineering required for the Empire PFS. However, our
expanded land position at Navarre Creek affords us the time to further assess
the exploration data and develop a strategy for the next phase of drilling to
be conducted this year.  We will report more information regarding Navarre
Creek as soon as time allows."

Pre-Feasibility Study (PFS)

The Empire Open-Pit Mine PFS was commissioned in early 2023 and began with
comprehensive metallurgical engineering studies, using metallurgical core
obtained during the 2022 metallurgical drilling programme and assay results
that became available from the laboratory in early 2023. In addition to
metallurgy, the PFS will include a comprehensive analysis of geological
models, mine design, mineral processing design, environmental assessment and
analysis, estimation of operating and capital costs, and final economic
analysis and cashflow modeling.

Process Design and Metallurgical Testing

The metallurgical test work and process design engineering completed to date
as part of the PFS, indicates that oxide flotation + tank leach tails
processing will provide the most optimal results.

The process design/metallurgical engineering team has completed preliminary
test work on electrical load calculations, comminution testing, flotation
concentrate smelter penalty analysis, variability testing, thickening testing,
leach residue analysis, and cementation. Additional sample composites
representing several mining phases are currently undergoing final laboratory
testing.  Additionally, laboratory checks and some final grinding studies,
rougher/cleaner flotation testing, and leach tails analysis are in process in
the laboratory and anticipated for completion during Q1 2024.  The results of
all of the work will be incorporated into the PFS.

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
(https://phoenixcopperlimited.com/)  or contact:

 Phoenix Copper Limited                               Ryan McDermott                                      Tel: +1 208 954 7039

                                                      Brittany Lock                                       Tel: +1 208 794 8033

                                                      Richard Wilkins                                     Tel: +44 7590 216 657
 SP Angel Corporate Finance LLP (Nominated Adviser)   David Hignell / Caroline Rowe / Kasia Brzozowska    Tel: +44 20 3470 0470
 Tavira Financial Limited (Joint Broker)              Jonathan Evans / Oliver Stansfield                  Tel: +44 20 7100 5100

 WH Ireland (Joint Broker)                            Harry Ansell / Katy Mitchell                        Tel: +44 20 7220 1666
 Panmure Gordon (UK) Limited (Joint Broker)           Hugh Rich / Ailsa Macmaster                         Tel: +44 20 7886 2500
 EAS Advisors (US Corporate Adviser)                  Matt Bonner / Rogier de la Rambelje                 Tel: +1 (646) 495-2225
 BlytheRay                                            Tim Blythe / Megan Ray                              Tel: +44 20 7138 3204

(Financial PR)

Notes

Phoenix Copper Limited is a USA focused, base and precious metals emerging
producer and exploration company, initially targeting copper, gold, silver 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 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 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/
(https://phoenixcopperlimited.com/)

 

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