REG - Phoenix Copper Ltd - Further Results of Metallurgical Core Drilling

Phoenix CopperAnnouncement

16/03/2023 07:00

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RNS Number : 1257T  Phoenix Copper Limited  16 March 2023

Phoenix Copper Limited / Ticker: PXC / Sector: Mining

16 March 2023

Phoenix Copper Limited

('Phoenix' or the 'Company')

 

Further Results of Metallurgical Core Drilling at the Empire Open Pit Copper
Project, 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 a further three metallurgical core holes at its
Empire Open Pit Copper Project, in Custer County, Idaho, USA (the 'Empire Open
Pit'). As announced on 4 January 2023, 1,077 metres ('m') of a planned 1,500 m
metallurgical core drilling programme were completed during 2022 and will
provide samples and technical information for further metallurgical testing,
geotechnical studies, and geological modeling.

Significant drill results from the seventh, eighth and ninth holes of the
programme are listed in Table 1, including the following highlights:

Hole KXD22-07B

o  24.38 m of 1.99% copper, 107.4 grammes/tonne ('g/t') silver, 247 ppm
molybdenum, and 421 ppm tungsten starting at 12.80 m.

o  Including 10.97 m averaging 3.94% copper, 214.5 g/t silver, and 421 ppm
tungsten from 21.49 m.

o  And including 0.91 m of 10% copper from 25.76 m.

o  And including 1.07 m of 12.80% copper from 26.67 m.

Hole KXD22-08

o  8.84 m of 0.73% copper, 43.1 g/t silver, 100 ppm molybdenum, and 204 ppm
tungsten starting at 17.68 m.

o  Including 2.29 m averaging 2.33% copper and 142.3 g/t silver from 17.68 m.

Hole KXD22-09

o  8.96 m of 0.62% copper and 0.78% zinc starting at 174.04 m.

o  Including 1.37 m of 1.63% copper, 82.5 g/t silver, 0.51% lead, 3.43% zinc
and 505 ppm molybdenum from 174.04 m.

 

The 2022 metallurgical exploration programme was designed to collect material
from each of the metallurgical domains to evaluate the metallurgical
variability within the Empire Open Pit while improving the understanding of
the geologic and structural controls on mineralisation. The results continue
to confirm the continuity of mineralisation, which appears along structures
striking northeast and dipping steeply to the southeast. The Phoenix team is
assessing these results for inclusion in updated geological models and
targeting additional drilling.

 

Ryan McDermott, Chief Executive Officer, said, "We are pleased to report the
assay results from the final three metallurgical core holes KXD22-07B,
KXD22-08, and KXD22-09.  All of the core samples designated for metallurgical
testing have now been shipped to the metallurgical laboratory to complete the
test program.

"The 2022 metallurgical drilling program targeted specific zones within the
Empire resource, in order to collect samples that are representative of the
geology and grade characteristics of the deposit as a whole. The samples will
be used in the additional testing of ammonium thiosulfate as a recovery agent
for copper, gold, and silver, which may enable us to bring forward the
production of gold and silver, currently scheduled as a second phase of the
Empire Open Pit project.

"Consistent with the copper, gold, and silver values previously reported for
holes KXD22-01 through KXD22-07, holes KXD22-07B, KXD22-08, and KXD22-09
continue to show robust metal values. Hole KXD22-07B includes 80 feet (24.38
m) grading 1.99% copper and 107.4 g/t silver, including an impressive 36 feet
(10.97 m) averaging 3.94% copper and 214.5 g/t silver (in which contains 3.6
feet (1.1 m) of 12.8% copper, and 9.8 feet (3.5 m) averaging 2.06 g/t gold and
2.28% zinc). Holes KXD22-08 and KXD22-09 also returned robust values,
including 29 feet (8.84 m) of 0.73% copper and 43.1 g/t silver, and 4.6 feet
(1.37 m) of 1.63% copper and 82.5 g/t silver, respectively.

"Most importantly, the intercepts in the drilling program thus far are
consistent with the team's expectations and meet the material
type-grade-interval length necessary for the metallurgical test work currently
being undertaken.

"We look forward to reporting the results of the metallurgical testing as they
become available. We also look forward to reporting the assay results for the
Redstar/North Pit reverse-circulation drilling completed in 2022. We expect
those results to become available in the near future."

 

Table 1 - Empire Drilling Results March 10, 2023

 Drill Hole  Intersection Metres          g/tonnes      %      %      %     ppm  ppm
 Number      From     To       Interval*  Au     Ag     Cu     Pb     Zn    Mo   W
 KXD22-07B   12.80    37.19    24.38      0.015  107.4  1.99   0.008  0.05  247  421
 including   21.49    22.86    1.37       0.010  97     2.36   0.004  0.01  32   540
             23.01    23.93    0.91       0.010  104    2.24   0.005  0.04  259  210
             23.93    24.99    1.07       0.040  302    5.77   0.012  0.02  211  2840
             24.99    25.76    0.76       0.010  136    2.79   0.006  0.01  118  530
             25.76    26.67    0.91       0.100  476    10.00  0.031  0.01  211  1650
             26.67    27.74    1.07       0.005  691    12.8   0.025  0.03  445  700
             27.74    29.11    1.37       0.030  173    2.08   0.014  0.06  427  110
             29.11    31.09    1.98       0.020  96.2   0.72   0.013  0.05  459  210
             31.09    32.61    1.52       0.010  65.1   1.71   0.007  0.04  698  140
 KXD22-07B   41.45    58.22    16.76      0.019  17.2   0.81   0.210  0.17  324  149
 including   41.45    43.28    1.83       0.005  6.5    1.07   0.004  0.09  195  150
             43.28    44.81    1.52       0.010  17.6   1.36   0.501  0.33  963  170
             44.81    46.63    1.83       0.005  1.2    0.10   0.002  0.01  139  80
             46.63    48.16    1.52       0.005  10.6   0.68   0.002  0.20  99   110
             48.16    49.38    1.22       0.010  7.1    0.83   0.002  0.10  542  280
             49.38    50.60    1.22       0.010  8.5    0.45   0.006  0.09  167  170
             50.60    51.66    1.07       0.050  27.4   3.02   0.010  0.09  211  180
             51.66    53.19    1.52       0.030  7      1.03   0.004  0.16  730  290
 including   55.17    56.69    1.52       0.040  70.1   0.52   0.939  0.43  233  110
             56.69    58.22    1.52       0.050  26.6   0.34   0.765  0.26  225  70
 KXD22-07B   81.38    100.28   18.90      0.421  5.5    0.09   0.006  1.71  55   13
 including   87.36    88.09    0.73       0.060  3.3    0.09   0.005  2.37  48   20
             88.09    89.61    1.52       0.030  9.5    0.17   0.003  4.54  95   20
             89.61    91.44    1.83       0.320  3.8    0.02   0.004  3.58  27   20
             91.44    92.96    1.52       2.890  3.8    0.02   0.004  2.48  18   10
             92.96    94.49    1.52       1.230  4.5    0.02   0.005  2.08  31   5
 KXD22-08    17.68    26.52    8.84       0.032  43.1   0.73   0.004  0.03  100  204
 including   17.68    18.75    1.07       0.130  205    3.52   0.010  0.04  230  130
             18.75    19.96    1.22       0.060  87.5   1.28   0.009  0.03  80   50
 KXD22-09    174.04   183.00   8.96       0.195  22.0   0.62   0.084  0.78  86   25
 including   174.04   175.41   1.37       0.100  82.5   1.63   0.509  3.43  505  70
             175.41   177.24   1.83       0.040  15.9   0.33   0.004  0.06  8    10
             177.24   178.77   1.52       0.100  20.5   0.86   0.025  0.79  35   60
             178.77   179.98   1.22       0.140  3.1    0.15   0.002  0.35  2    5

 

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

**KXD22-07 was terminated in a historical mine working at 18.3m: KXD-22-7B was
drilled at a different dip.

 

 

 

Assay Quality Control

All PQ and HQ drill core is logged by Konnex personnel at Phoenix's drill core
facility located in Mackay, Idaho, USA. The drill core is then cut in half.
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
core sample sequence.

Two of the standards inserted in the KXD22-08 sample exceeded the 3 standard
deviations limit, one of which followed a high-grade copper intercept.
Consistent with that protocol, the Company has instructed the laboratory to
re-run 10 sample intervals immediately preceding the standards and 10 sample
intervals immediately following the standards. The Company will report any
significant variances that may exist following the completion of the assay
re-runs.

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 they appear.

Diamond core drilling was conducted by AK Drilling of Butte, Montana, 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 HQ core 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 100.0
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.

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 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. 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
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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