REG - Phoenix Copper Ltd - Empire Open-Pit Mine Mineral Reserve Statement

Phoenix CopperAnnouncement

07/05/2024 07:15

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RNS Number : 2686N  Phoenix Copper Limited  07 May 2024

Phoenix Copper Limited / Ticker: PXC / Sector: Mining

7 May 2024

 

Phoenix Copper Limited

("Phoenix" or the "Company")

 

Mineral Reserve Statement for the Empire Open-Pit Mine

 

Phoenix Copper Ltd (AIM: PXC; OTCQX ADR: PXCLY), the AIM-quoted USA-focused
base and precious metals emerging producer and exploration company, is
pleased to confirm that it has upgraded its mineral resources into mineral
reserves, and to announce its inaugural mineral reserve statement for its
Empire Open-Pit Mine in Idaho, USA.

 

Highlights

·    Proven and Probable mineral reserves - 10.1 million tonnes
containing:

o  Copper - 109,487,970 lbs

o  Gold - 104,000 ounces

o  Silver - 4,654,400 ounces

·    66,467 copper equivalent tonnes of contained metal

 

Ryan McDermott, Chief Executive Officer, commented: "I am very pleased to
report the first mineral reserve statement for our Empire open pit
copper-gold-silver mine. The Proven and Probable reserves at Empire are 10.1
million tonnes containing 109,487,970 lbs of copper, 104,000 ounces of gold,
and 4,654,400 ounces of silver, which equates to 66,467 copper equivalent
tonnes.

"This reserve calculation upgrades our mineral resources into mineral reserves
that represent the economically mineable portion of the mineral resources. The
reported reserves are the result of years of exploration, drilling, and
metallurgical testing, followed by meticulous engineering evaluation and
analysis. It was estimated using assay data from 485 drill holes, extensive
geological modelling, metallurgical recovery test work, geotechnical
evaluation, and mine design.

"Mineral reserves meet the requirements of geological certainty,
accessibility, and economic viability, and are estimated after allowing for
mining and processing dilution, and thus represent the recoverable contained
metal that is expected to be delivered to the smelter for refining into
saleable product to generate revenue.

"I want to thank our team for their tireless hours of work and their
dedication to our Idaho project.  I look forward to sharing additional
updates regarding the Empire open pit development in due course."

 

Mineral Reserve Statement for Empire Mine

Fully diluted tonnes @ a Net Smelter Return cut-off of $22.59/tonne

 Classification     Tonnes   Copper            Gold              Silver             Copper Equiv.
                    (x1000)  %     lb (x1000)  gpt   oz (x1000)  gpt    oz (x1000)  %      lbs (x1000)  tonnes
 Proven             7,515    0.49  81,070.56   0.38  90.9        14.42  3,483.70    0.68   111,995.19     50,814
 Probable           2,582    0.5   28,417.41   0.16  13.2        14.1   1,170.70    0.61   34,498.69       15,652
 Proven + Probable  10,097   0.49  109,487.97  0.32  104         14.34  4,654.40    0.66   146,493.89       66,467

 

The mineral reserves reported herein for the Empire project have been
estimated in a manner consistent with the NI 43-101 Committee of Mineral
Reserves International Reporting Standards ("CRIRSCO") of which both the
Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") and
Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves (the "JORC Code") are members.

 

The mineral reserves presented herein are an integral part of the Company's
ongoing pre-feasibility studies and will be reported in a NI43-101 PFS in due
course.

 

Mineral Reserves Defined

Mineral reserves are defined as that portion of a mineral resource that can be
realistically and economically mined. A mineral reserve must be proven by a
detailed evaluation programme and meet stringent requirements of geological
certainty, accessibility, and economic viability, proving that a deposit is of
sufficient quantity and quality to be defined as a viable, economically
mineable reserve.

A mineral reserve will typically include allowances for losses (dilution) that
may occur during the extraction process as defined by feasibility engineering
studies. To attain the distinction of being a "reserve," this resource must
also be fully evaluated and deemed commercially viable to work.

Mineral reserves are typically defined as probable or proven reserves. Proven
reserves are reserves where the spatial information of the reserve, including
size, shape, and depth, as well as mineral content of the reserves are
well-established. Probable reserves have some of the same qualities of a
Proven reserve, but may have sites for inspection, sampling, or measurement
that are farther apart or otherwise less adequately spaced, which makes the
data less reliable than for Proven reserves.

By comparison, mineral resources are defined as Measured and Indicated and are
not necessarily economically mineable. A mineral reserve is extracted from the
mineral resource and represents the economically mineable portion of a
Measured and Indicated resource.

 

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.

 

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.

 

 

For further information please visit  https://phoenixcopperlimited.com
(https://phoenixcopperlimited.com/) .

Contacts

 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)           Mark Murphy / Will Goode / Joseph Tan              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 an emerging producer and exploration company
specialising in base and precious metals, with an initial focus on copper,
gold, and silver extraction from an open-pit mining operation within the
United States.

 

Located in the historic Alder Creek mining district near Mackay, Idaho,
Phoenix's flagship asset is the Empire Mine, in which the Company holds an 80%
ownership stake. The historic Empire underground mine, located beneath the
surface of the Company's proposed open pit, boasts a rich history of producing
high-grade copper, gold, silver, zinc, and tungsten.

 

Since 2017, Phoenix has executed extensive drilling initiatives, resulting in
the estimation of mineral reserves.  The Proven and Probable reserves at
Empire are 10.1 million tonnes containing 109,487,970 lbs of copper, 104,000
ounces of gold, and 4,654,400 ounces of silver, equating to 66,467 copper
equivalent tonnes.

 

In addition to the Empire Mine, Phoenix's holdings in the district also
encompass the Horseshoe, White Knob, and Blue Bird Mines, all of which have
been producers of copper, gold, silver, zinc, lead, and tungsten from
underground operations, a new high-grade silver and lead orebody at Red Star,
and the Navarre Creek gold exploration project, which was first drilled in
2023. The Company's land package at Empire spans 8,434 acres (34.13 sq km).

 

Phoenix also owns two cobalt properties situated along the Idaho Cobalt Belt
to the north of Empire. An Earn-In Agreement has been established with Electra
Battery Materials, Toronto, concerning one of these 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://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fphoenixcopperlimited.com%2F&data=05%7C02%7Cpaul.degruchy%40phoenixcopper.com%7Cd3c94638cd2a404fd97908dc4457be72%7C0ab43313efbd470e8b202b53ae10513d%7C0%7C0%7C638460390942473879%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=zDJLf9dFwaNJhQmfkjPJtPnIxiqtCJb%2F1IuX1s1r7kQ%3D&reserved=0)

 

 

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