REG - Phoenix Copper Ltd - Exploration Drilling Results at the Empire Mine

Phoenix CopperAnnouncement

12/04/2023 07:00

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RNS Number : 8872V  Phoenix Copper Limited  12 April 2023

Phoenix Copper Limited / Ticker: PXC / Sector: Mining

12 April 2023

Phoenix Copper Limited

('Phoenix' or the 'Company')

 

2022 Red Star Exploration Drilling Results at the Empire Mine, 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 the assay results from the Red Star exploration drilling at its Empire
Mine in Custer County, Idaho, USA (the 'Empire Mine'). In total, 268 metres
('m') of reverse circulation ('RC') drilling was completed in late 2022 and
will provide samples and technical information for geological and resource
modeling.

Significant drill results are listed in Table 1, including the following
highlights:

Hole RS22-01

o  1.52 m of 1.44% lead, 19.9 grammes/tonne ('g/t') silver, 565 parts per
million ('ppm') molybdenum starting at 30.48 m.

 

Hole RS22-02

o  7.62 m of 0.36% copper, 142.7 g/t silver, 2.94% lead, and 1.54% zinc
starting at 32.00 m.

o  Including 1.52 m averaging 1.01 g/t gold, 332 g/t silver, 1.35% copper,
2.18% lead, 1.39% zinc and 156 ppm molybdenum from 33.53 m.

o  Including 6.10 m averaging 175.3 g/t silver, 3.68% lead and 1.89% zinc
from 33.53 m.

 

Hole RS22-03

o  3.05 m of 0.53 g/t gold and 0.21% copper starting at 3.05 m.

o  Including 1.52 m averaging 0.87 g/t gold, 0.28% copper from 4.57 m.

 

Hole RS22-04

o  9.15 m of 1.56 g/t gold and 0.32% copper starting at 1.52 m.

o  Including 1.52 m averaging 0.62 g/t gold, 42.7 g/t silver and 0.64% copper
from 3.05 m.

o  Including 1.52 m averaging 7.59 g/t gold and 0.58% copper from 9.14 m.

 

Ryan McDermott, Chief Executive Officer, said, "I am pleased to report the
assay results from the Company's 2022 reverse circulation drilling program at
Red Star.

"The drilling targeted the boundaries of the magnetic anomalies identified in
the 2021 ground magnetics survey, with the aim of further define the extents
of those anomalies and to provide depth and geometry to the mineralized
subsurface. The results continue to build on our understanding of the Red
Star/North Pit area, and further demonstrate the extensive polymetallic
mineralization at Empire.

"Holes RS22-02 and RS22-04 show robust metal values consistent with the
results of previous drilling in the area. Hole RS22-02 includes 4.99 feet
(1.52 m) grading 1.01 g/t of gold, 332 g/t silver, 1.35% copper, 2.18% lead,
1.39% zinc and 156 ppm molybdenum. Hole RS22-04 also returned robust metal
values, including 4.99 feet (1.52 m) of 7.59 g/t gold and 0.58% copper.

"While we were only able to complete 268 m of drilling due to the limited
availability of the drill rig, the data and results that we collected have
added significantly to our understanding of the mineralization and the
boundaries of the magnetic anomalies and will aid in future drilling, modeling
and ultimately updating of the resource.

"It is important to understand that the drilling results seen thus far in the
Red Star area are indicative of higher-grade, narrow vein mineralization which
may best lend itself to underground mining methods. Conversely, the longer and
lower grade drilling intercepts in the Empire open pit area lend themselves to
bulk tonnage, open pit mining methods. The close proximity of both styles of
mineralization speaks volumes about the potential size and complexity of the
Empire system."

 

Background

In 2018, exploratory drilling at Red Star, located approximately 330 m
northwest of the Empire Mine proposed open pit, intercepted a near-surface
high-grade silver and lead zone. In 2019, 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 at Red Star in the Company's NI
43-101 technical report. A ground magnetics survey was conducted in the area
during the 2021 field season to help identify the possible location of
mineralized structures below the vegetative cover. The survey identified three
subsurface magnetic anomalies east of the Red Star discovery outcrop. In
response to those findings, seven RC drill holes were completed that year in
various locations throughout the anomalous zones. The results of the 2021 RC
drilling campaign confirmed magnetite-related mineralisation focused along
several northerly trending structures. The Red Star mineralisation appears as
discrete zones plunging steeply to the east along the structures mapped in the
geophysical survey, similar to the well-understood magnetite zones encountered
in the open pit area on the southern end of the project.

The 2022 RC drilling programme targeted the extensions of these structures.
This effort was part of a larger plan to gather geochemical data and better
understand the boundaries and characteristics of the magnetic anomalies. The
geological structures in the area can be challenging to drill because of the
highly variable material they contain and the steep topography typical of the
area. The geological formations in the area consist of a mix of hard garnet
skarn and granite porphyry, as well as softer and more friable material. Due
to this variation in material, drilling progress can be slow in order to
maintain a high quality of samples.

 

Table 1 - Red Star Drilling Results

 Drill Hole  Intersection Metres          g/tonnes      %     %      %     ppm   ppm
 Number      From     To       Interval*  Au     Ag     Cu    Pb     Zn    Mo    W
 RS22-01**   30.48    32.00    1.52       0.05   19.9   0.02  1.440  0.07  565   20
 RS22-02***  32.00    39.62    7.62       0.42   142.7  0.36  2.940  1.54  74.6  52
 including   33.53    35.05    1.52       1.01   332    1.35  2.180  1.39  156   70
             35.05    36.58    1.52       0.15   116    0.11  3.010  2.31  36    60
             36.58    38.10    1.52       0.29   119    0.05  4.710  2.06  33    60
             38.10    39.62    1.52       -      134    0.07  4.800  1.78  139   40
 RS22-03     3.05     6.10     3.05       0.53   11.4   0.21  0.007  0.19  2     12.5
 including   4.57     6.10     1.52       0.87   18     0.28  0.007  0.16  2     5
 RS22-04     1.52     10.67    9.15       1.56   15.8   0.32  0.004  0.02  2.3   5
 including   3.05     4.57     1.52       0.62   42.7   0.64  0.009  0.03  3     5
 including   9.14     10.67    1.52       7.59   22.5   0.58  0.005  0.03  2     5

* Length along hole (not necessarily equivalent to true width).

**RS22-01 was terminated due to the hole collapsing. RS22-01A was collared and
redrilled approximately 10 feet to the southwest of the original hole.
RS22-01A did not have any significant intervals to report.

***RS22-02 sample starting at 38.10 m did not have sufficient material for an
Au assay after the completion of multi-element digest and over limit assays.

 

Red Star geomagnetic survey and drill hole locations.

 

Assay Quality Control

All RC chips are logged by Konnex personnel at Phoenix's drill core facility
located in Mackay, Idaho, USA. The RC chips are split at the drill rig. One
half is sent to a commercial laboratory for assaying, and the other half is
kept for future reference. A strict QA/QC programme is in place by integrating
duplicates, blanks, and certified reference standards into the RC sample
sequence.

Qualified Person

The foregoing technical information in this news release has been reviewed and
verified by Zachary J. Black, SME-RM. 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 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 ±30°. 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.

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 (Nominated Adviser)                 David Hignell / 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)   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
 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 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. Phoenix updated its economic model in
February 2021 to include the processing of all contained metals through a two
phased approach.

Since 2017, Phoenix has conducted extensive drilling programmes to define the
potential of an open-pit heap leach SX-EW mine. In October 2020, a Preliminary
Economic Assessment was completed in accordance with NI 43-101. The 2020 PEA
reports the measured and indicated resource at 22.9 million tonnes at an
average grade of 0.38% copper, 0.324 g/t gold, 10.3 g/t silver, and 0.19%
zinc, with a total of 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/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/ (https://phoenixcopperlimited.com/)

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