REG - Phoenix Copper Ltd - Empire Mine Open Pit Status Update

Phoenix CopperAnnouncement

15/12/2021 07:00

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RNS Number : 6622V  Phoenix Copper Limited  15 December 2021

Phoenix Copper Limited / Ticker: PXC / Sector: Mining

15 December 2021

Phoenix Copper Limited

('Phoenix' or the 'Company')

 

Empire Mine Open Pit Status Update

Exploratory drilling encounters further high-grade oxide mineralisation

 

Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLF), the AIM quoted USA focused base
and precious metals emerging producer and exploration company, is pleased to
announce a status update on its Empire Mine Open Pit Project in Idaho, USA.

 

Highlights

·    Three shallow exploratory drill holes into an area of the Empire Mine
Open Pit not previously drilled all encountered further oxide mineralisation,
including:

o  18.3 metres ('m') of 0.61% copper, and 12.8 grammes/tonne ('g/t') silver
from surface including 4.6 m of 0.86% copper, 15.5 g/t silver, and 1.02% zinc
from 9.1 m

·    The Empire Mine Open Pit project remains on course for Production

·    The Empire Mine Oxide Open Pit feasibility study remains on schedule
for completion in early Q2 2022 and will include an update of the resources

·    The Empire Mine Oxide Open Pit operating plan was presented to the
community of Mackay, Idaho during a Town Hall meeting on 1 December 2021

 

Ryan McDermott, Chief Executive Officer, said, "We have received the
analytical results from Empire step-out drill holes KX21-01 to KX21-03, and
from three condemnation drill holes. These drill holes were completed using a
reverse-circulation drill rig that was available for a short period while our
core drilling rig was busy completing an oriented coring program for the
feasibility-level slope stability studies.

 

"We completed three exploratory drill holes on the south end of the Empire
oxide copper deposit in an area that had no previous drilling but surface
indications suggesting it to be prospective.  Copper, silver, and zinc
mineralisation was intercepted in all three of the drill holes KX21-01 -
KX21-03 (see results in Table 1, below), including grades in excess of the
average grade used in our preliminary economic model.  KX21-02 was of
significant interest, with an average oxide copper grade of 0.61% from the
surface down 18.3 m, and including 4.6 m of 0.86% copper.  This mineralised
zone appears contiguous with the main Empire oxide deposit but has not yet
been included in the resource.  KX21-01 encountered a shorter interval of 3.1
m of zinc mineralisation grading 1.56% at 47.2 m depth, and KX21-03
encountered a 1.5 m interval of 1.46% copper at a depth of 29.0 m.  The
Phoenix team is assessing these results for additional drilling in the future,
as well as inclusion in the next resource update in early Q2 2022.

 

"Analytical data from the condemnation drilling was as expected with no
significant mineralised intercepts.  The 2021 geotechnical oriented core
drilling program was also successful in providing data for slope stability
calculations to be used in the feasibility study.

 

"Our focus is now squarely on bringing the Empire Open Pit into production as
soon as possible. With over 400 holes drilled, we have a profound
understanding of the resource at the Open Pit and have planned our budgets
accordingly. To be finding evidence of additional ore at prospective grades is
very good news.  We are also pleased to confirm that the feasibility study
for the Empire Open Pit Project remains on track for completion in early Q2
2022, and that the Company held its first Town Hall community meeting in
Mackay on 1 December 2021, as part of our ESG and Sustainability Program's
community liaison process. More than 135 citizens attended the meeting,
wherein the Phoenix team presented a description of the proposed operating
plan and then fielded questions and comments from the attendees. The questions
and comments from the community included, but were not limited to,
transportation and supply routes, mine staffing and staff housing, and
economic community benefits. The information gathered will be invaluable in
the future operating design. I want to personally thank everyone who attended
the meeting for taking time out of their busy schedules to do so."

 

 

Table 1 - Empire Drilling Results 15 December 2021

 Drill Hole  Intersection Metres         g/tonne     %     %     %     Mo     W
 Number      From     To       Interval  Au    Ag    Cu    Pb    Zn    ppm    ppm
 KX21-01     30.5     35.1     4.6       0.0   9.4   0.43  0.04  0.18  55.0   40.0
 KX21-01     47.2     50.3     3.1       0.0   12.4  0.54  0.02  1.56  253.0  10.0
 KX21-01     105.2    109.7    4.6       0.0   3.0   0.44  0.01  0.39  49.0   30.0
 KX21-02     0.0      18.3     18.3      0.0   12.8  0.61  0.02  0.40  92.3   153.3
 including   9.1      13.7     4.6       0.0   15.5  0.86  0.01  1.02  132.0  150.0
 KX21-03     29.0     30.5     1.5       0.0   12.9  1.46  0.08  0.30  229.0  60.0
 KX21-03     100.6    102.1    1.5       0.0   2.6   0.01  0.01  1.34  62.0   50.0

 

 

The Empire Open Pit Copper Oxide Project

 

The Empire Open Pit copper oxide project contains a Measured & Indicated
resource of 87,543 tonnes of copper, 43,871 tonnes of zinc, 238,406 ounces of
gold and 7.6 million ounces of silver. At a $3.60 copper price the preliminary
economic model shows a pre-tax 7.5% NPV of $105 million with a 57% IRR, and a
post-tax NPV of $88 million with a 47% IRR. Estimated capital expenditure of
$53 million is paid back within two years, and gross revenue over 10 years is
$836 million. At current metal prices the pre-tax NPV rises to $159 million
with a 92% IRR, and post-tax NPV rises to $144 million with an 82% IRR.
Capital expenditure is paid back in less than one year, and gross revenue over
10 years is $911 million. It is hoped that these economics can be improved as
a result of the ongoing work on the feasibility study.

 

Qualified Person

The foregoing technical information contained in this news release has been
reviewed and verified by Zachary J. Black, SME-RM, General Manager. 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 they appear.

 

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 information contained within this announcement is deemed by the Company 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
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

                                              Dennis Thomas                                 Tel: +44 7827 290 849

                                              Richard Wilkins                               Tel: +44 7590 216 657
 SP Angel (Nominated Adviser)                 David Hignell / Caroline Rowe                 Tel: +44 20 3470 0470
 Brandon Hill Capital (Joint Broker)          Jonathan Evans / Oliver Stansfield            Tel: +44 20 3463 5000

 WH Ireland (Joint Broker)                    Harry Ansell / Adam Pollock / Katy Mitchell   Tel: +44 207 2201666
 Panmure Gordon (UK) Limited (Joint Broker)   John Prior / 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
 Blytheweigh                                  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 and zinc
production from an open pit mine from late 2022.

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 resulted
in the publication of a NI 43-101 PEA in October 2020 for an open pit heap
leach solvent extraction and electrowinning ("SX-EW") mine, which was updated
in October 2020. The contained metal in all NI 43-101 compliant categories of
resources, measured, indicated, and inferred, stand at 129,641 tonnes of
copper, 355,523 ounces of gold, 10,133,772 ounces of silver and 58,440 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 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 the Navarre Creek Project, a volcanic hosted, precious
metals target in a 14.48 km² 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 First Cobalt
Corporation, Toronto, in respect of one of those properties.

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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