REG - Phoenix Copper Ltd - Navarre Creek Geophysical Results

Phoenix CopperAnnouncement

28/01/2022 07:00

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RNS Number : 9024Z  Phoenix Copper Limited  28 January 2022

Phoenix Copper Limited / Ticker: PXC / Sector: Mining

28 January 2022

Phoenix Copper Limited

('Phoenix' or the 'Company')

 

Navarre Creek Geophysical Results

 

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 provide the results from its ground-based field magnetics survey and
airborne hyperspectral mineral survey at the Company's Navarre Creek project
in Custer County, Idaho, USA.

 

Highlights

·    169-line kilometres ('km') of ground-based total field magnetics and
airborne hyperspectral imaging completed for the entirety of the Navarre Creek
claim block

·    Two distinct intrusive bodies identified, partially concealed below
glacial till showing strong magnetic signatures which complement the existing
jasperoid outcrops

·    A northeast trending, approximately 2.3-mile-long by 1-mile-wide
corridor of hydrothermal alteration also identified, consistent with the gold
and silver bearing Carlin-style epithermal deposits

·    Markers for Carlin-style gold deposits are the presence of
jasperoids, and the association of gold, antimony, silver and zinc. These
markers are found at Navarre Creek and may signify the potential for this
style of deposit

·    The results of these surveys, together with the results of previous
exploration, highlight the prospectivity of the claim block.  These positive
results will drive further exploration and drill targeting in 2022

 

Ryan McDermott, Chief Executive Officer, said, "I am excited to finally report
the results of two geophysical surveys conducted at our Navarre Creek property
this past summer, a ground-based field magnetics survey and an airborne
hyperspectral mineral survey. Both surveys covered the entirety of the
3,577-acre claim block, including the 1,054 acres of additional claims filed
in July 2021, and identified two magnetic bodies partially concealed below
glacial till and overburden, a roughly 2.3-mile-long by 1-mile-wide zone of
hydrothermal alteration similar to that associated with Carlin-style
epithermal deposits in the western US. The results confirm the geological and
geochemical testing results reported by the Company from previous field
studies, in particular the iron-rich Lehman Fault and Bear Cave gossan.

"The geophysical results coincide well with the previous mapping and sampling
conducted by the Phoenix team, as well as with the findings of the Idaho
Geological Survey reported in "Geology and Geochemistry of Jasperoid Near
Mackay, Idaho" 1988, Bulletin 27. This report states "Hydrothermal solutions
that formed the jasperoids may also have formed large low-grade precious metal
deposits within the jasperoid bodies or within altered country rocks
associated with the jasperoids." Jasperoids and the association of gold,
antimony, silver, copper and zinc, as found at Navarre Creek, can be the
signatures of precious metal deposits. We believe the Navarre Creek area to be
quite remarkable, with the combination of iron-rich faults and gossans,
jasperoid bodies, and favourable surface geochemistry all supported by the
results of the latest geophysical surveys.

"We developed an exploration model at Navarre targeting the geology,
geochemistry, and geophysics typical of epithermal precious metal deposits.
Our findings thus far, including the recent geophysical results, support our
exploration model and will provide the basis for further exploration,
including a planned drilling program in 2022. In addition to the evaluation of
these latest Navarre Creek results, we continue to focus our efforts on the
Empire Open-Pit copper oxide feasibility study, scheduled for completion in Q2
of this year, and with the ongoing permitting of the Empire copper-oxide open
pit."

 

Navarre Creek Geology, Geochemistry, and Geophysics

During the 2021 field season, Phoenix contracted Magee Geophysical Services to
acquire approximately 169 line-km of total field magnetic measurements at the
Company's Navarre Creek project and SpecTIR, LLC of Reno, Nevada to complete
an airborne hyperspectral survey of the same Navarre Creek area to identify
prospective exploration targets in an area, many of which are largely
concealed by glacial till.

The ground magnetics survey looked specifically for magnetite and
magnetic-bearing minerals, some of which have been identified in limited
outcroppings, while the hyperspectral imaging helps to identify alteration
minerals often associated with precious metal deposition.

Hyperspectral imaging incorporates a small airplane with mounted infrared
lights and sensors to detect a wide range of wavelengths, mineral absorption
and reflectance within the target area. The wavelength data collected in this
survey are VNIR (Visible and Near-Infrared), SWIR (Short-Wave Infrared), and
LWIR (Long-Wave Infrared). The human eye can detect wavelengths (colors) from
390 nanometers ('nm') to 700nm. The VNIR and SWIR sensors collected wavelength
data from 390nm to 2,450nm, while the LWIR sensors ranged from 8,000nm to
12,000nm.

The Navarre Creek project is located within an intrusive dome complex, where
the magnetic components in overlying volcanic lithologies is destroyed by
silicic alteration associated with steam-heated, acidic, and oxidized
hydrothermal fluids. The survey highlighted several such areas including the
Lehman Creek fault, one or more porphyry plugs, and several contacts/faults.

The survey identified volcanic associated alteration that is both acidic and
of fairly high temperature as evidenced by pyrophyllite and dickite. As would
be expected in the Challis Volcanic Field, the white mica is Al-rich
(paragenetic) and also shows zoned crystallinity patterns, typical of
intermediate-to-high sulfidation systems and is likely proximal to a magmatic
heat source. The presence of iron oxide associated with some of these zones
adds prospectivity. The alteration pattern is useful in developing an
exploration model to optimise future drill targets.

During the summer of 2020, Konnex Resources' exploration team mapped and
sampled the Company's Navarre Creek gold property, which was then comprised
of 2,420 acres of unpatented mining claims, located approximately five
kilometres north-northwest of the Empire Mine.  90 rock chip and grab
samples were collected in the hydrothermally altered volcanic rocks that make
up the Navarre Creek claims and sent to ALS
Laboratories in Reno, USA for geochemical analysis.

Of the 90 samples, 53 were above the detection limit for gold with a high of
0.569 grammes per tonne ('g/t'), and 25 above the detection limit for
silver.  There was also a strong correlation between elevated gold values and
elevated antimony values, typical of epithermal gold and silver systems in the
western US.  With the exception of one sample, all samples with a gold value
greater than 0.1 g/t occurred within the same alteration type, that being
predominantly a jasperoid-hosted quartz stockwork and micro-veining system.
This provides valuable information for future sampling and drill targeting.
The quartz stockworking and micro-veining appear to occur predominantly in
felsic volcanic tuff units in the Navarre Creek area.  One anomalous
sample, 32519, registered a gold value of 0.387 g/t, in a magnetite skarn
sample located on the southern end of the Navarre Creek claim block where
the skarn body is exposed as subcrop through the surface volcanics tuffs.
Additionally, the presence of limestone in surface float near the skarn sample
location is evidence that the Paleozoic sedimentary rocks that occur at
the Empire Mine may be near the surface.  The Empire orebody is partly
comprised of a magnetite skarn body hosted in Paleozoic limestone.   It was
also noted that volcanic outcropping across the Navarre Creek area is
strongly weathered and highly leached to depths of two to four metres.

The Navarre Creek claim block now covers 3,577 acres (14.48 km²),
representing over six kilometres of prospective strike length, including an
area of secondary alteration thought to be epithermal in nature, with over
2.5-kilometres of highly brecciated, west-trending jasperoid intersecting
argillically and silicically altered Eocene Challis volcanics.

 

Qualified Person

The foregoing technical information 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 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

                                                     Dennis Thomas                                 Tel: +44 7827 290 849

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

 WH Ireland (Joint Broker)                           Harry Ansell / Adam Pollock / 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
 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 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 Corporation (formerly First Cobalt Corporation), 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) .

 

 

Glossary of Select Geological and Mining Terms

 Breccia                             Breccia is a term generally used for an enigmatic rock group that consists of
                                     a variety of individual mineral grains or broken fragments of rocks, often
                                     very angular and cemented together by a fine grain matrix, and sometimes
                                     glassy matrix which may or may not be similar to the composition of rock
                                     fragments.
 Carlin-type                         Carlin-type gold deposits are sediment-hosted disseminated gold deposits.
                                     These deposits are characterized by invisible (typically microscopic and/or
                                     dissolved) gold in arsenic rich pyrite and arsenopyrite. This dissolved kind
                                     of gold is called "Invisible Gold", as it can only be found through chemical
                                     analysis. The deposit is named after the Carlin mine, the first large deposit
                                     of this type discovered in the Carlin Trend, Nevada.
 Copper Oxide & Copper Sulphide      The two main types of copper ore are copper oxide ores and copper sulphide
                                     ores. Both ore types can be economically mined, but they are processed in
                                     different ways. Copper sulphide ores are typically the most profitable copper
                                     ore type to mine because they have higher copper content and the copper in
                                     them can more easily be separated from unwanted minerals (the gange). Copper
                                     oxide ores have the advantage in that they are more abundant and tend to be
                                     nearer the surface.
 Dickite                             A mineral consisting of a basic silicate of aluminum found relatively well
                                     crystallized in clays.
 Felsic volcanic tuff                Felsic volcanic rocks also include felsic tuff that was formed when tephra was
                                     consolidated. Tuff is composed of volcanic ash, glass shards and lithic
                                     fragments.
 Gossan                              An iron-containing secondary deposit, largely consisting of oxides and
                                     typically yellowish or reddish, occurring above a deposit of a metallic ore.
 Glacial till                        Till or glacial till is unsorted glacial sediment.
 Hyperspectral imaging               Hyperspectral imaging, like other spectral imaging, collects and processes
                                     information from across the electromagnetic spectrum. The goal of
                                     hyperspectral imaging is to obtain the spectrum for each pixel in the image of
                                     a scene, with the purpose of finding objects, identifying materials, or
                                     detecting processes.
 Jasperoids                          A rare, peculiar type of metasomatic alteration that occurs in two main forms;
                                     sulfidic jasperoids and hematitic jasperoids.
 Paragenetic                         Paragenesis, the sequence in which the minerals are formed in an ore deposit.
                                     Variations in the pressure and temperature and in the chemical constituents of
                                     a hydrothermal solution will result in the precipitation of various minerals
                                     at different times within the same ore deposit.
 Porphyry Ore                        Porphyry ore deposits are the Earth's major resources of copper, molybdenum,

                                   and rhenium (Sillitoe, 2010) and also provide significant amounts of gold,
                                     silver, and other metals. Mineralization styles include stockwork veins,
                                     hydrothermal breccias, and wall-rock replacements.
 Pyrophyllite                        A soft usually white or greenish mineral that is a hydrous aluminum silicate,
                                     resembles talc, occurs in a foliated form or in compact masses, and is used
                                     especially in ceramic wares.
 Skarn Deposits                      Skarn is coarse-grained metamorphic rocks that forms by a metasomatism.

                                     Also called tactites. Skarn tend to be rich in
                                     calcium-magnesium-ironmanganese-aluminium silicate minerals that also referred
                                     to calc-silicate

                                     minerals. Skarn, in geology, metamorphic zone developed in the contact area

                                     around igneous rock intrusions when carbonate sedimentary rocks are invaded by
                                     large amounts of silicon, aluminium, iron, and magnesium. Many skarns also
                                     include ore minerals; several productive deposits of copper or other base
                                     metals have been found in and adjacent to skarns.

 

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