REG - Phoenix Copper Ltd - Operational & Financing Update

Phoenix CopperAnnouncement

08/09/2022 07:01

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RNS Number : 6739Y  Phoenix Copper Limited  08 September 2022

Phoenix Copper Limited / Ticker: PXC / Sector: Mining

8 September 2022

Phoenix Copper Limited

("Phoenix" or the "Company")

 

Operational & Financing Update

 

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 an update on operations at its Idaho, USA projects, as well as the
Company's corporate copper bond issue.

Highlights:

·    Drilling at the Empire open pit copper mine ("Empire") commenced in
June 2022 to further the Company's understanding of metallurgical recovery
using Ammonium Thiosulfate ("ATS") reagent;

·    Trade-off, optimization, and engineering studies progressing on
Empire;

·    Exploratory drilling in the North Pit/Red Star area to commence on 15
September 2022;

·    Navarre Creek drilling plan approved by US Forest Service ("USFS");
and

·    Corporate copper bond issue underway with an initial tranche expected
to complete in the next few weeks.

 

Ryan McDermott, CEO of Phoenix Copper Limited said: "The work carried out
this summer is moving the Company closer to its goal of bringing Empire into
production in the most economical and environmentally sustainable way
possible. We are making progress across all fronts, though are not immune to
the same supply chain and contractor staffing challenges that companies
throughout the industry are experiencing.

"Metal prices, as well as equipment and supply pricing, are fluctuating wildly
as we pivot back toward pre-covid norms. While equipment and supply pricing
stabilize, our staff are using this time to evaluate and test technologies
that we hope will improve the project economics for Empire and reduce our
environmental footprint, such as aerial tramming from the open pit to the
processing facility versus classical truck haulage, and concurrent leaching of
copper and precious metals using the environmentally friendly ATS reagent.

"There is currently a heavy focus on the domestic production of metals for
green energy technologies like wind turbines, solar panels, and electric
vehicles, particularly with the recent news
(https://apnews.com/article/technology-california-air-resources-board-climate-and-environment-dc75c11280f85a8ab134cf392497be68)
that the California Air Resources Board has mandated that all new vehicle
sales will be electric or hydrogen by 2035, and that several other States, as
well as Canada and the E.U., are following suit. Our key value proposition is
the copper resource at Empire that will help meet the global demand created by
these green electrification initiatives and mandates.  As more and more of
these green energy programs are initiated, we expect the demand for copper and
critical EV metals to increase, likely far surpassing supply. We are well
positioned to meet some of that demand, initially from the open pit mine and
ultimately from the previously mined deeper sulfide deposit where we have
intercepted copper grades in excess of 8%.

"I am also pleased to report that we have now managed to secure a second drill
rig which will arrive on site on 15 September and will commence an exploratory
drilling program at the North Pit/Red Star area.

"I should also mention that we have received a Decision Memo from the USFS
approving the first drilling program at our Navarre Creek gold project.  We
submitted an operation plan for the drilling on 15 April 2021, it was approved
on 30 August 2022 and will commence in June of next year. This will allow us
to follow up on the encouraging surface geochemistry and geophysics completed
at Navarre Creek over the last few years.

"Finally, the corporate copper bond issue launched in June has attracted
considerable interest from potential investors, given the positive long-term
outlook for copper demand. Despite a difficult market, an initial tranche is
expected to complete in the next few weeks, which will enable us to accelerate
the ongoing development of Empire and the surrounding mineralized district,
including placing orders for long lead-time items of equipment, and
appropriate preparatory work on our patented land. I look forward to providing
our shareholders with further updates regarding the bond issue as
appropriate."

Empire open pit

Phoenix initiated its 2022 drilling program in June to provide samples for ATS
metallurgical test work. ATS is the non-toxic, environmentally friendly
reagent the Company plans to use for the recovery of base and precious metals
from Empire's open pit resource. With the results of these studies, the
Company will determine whether the production of precious metals can be moved
from the secondary phase of the operation to the primary phase. If feasible,
this would potentially enhance Empire's projected economics in the early years
of production.

There is no statutory timeframe for approval of the Plan of Operations (the
"Empire Plan"). However, it appears that few, if any, negative impacts from
future operations will exist and Phoenix is confident that it will be able to
address any concerns that regulators may raise. The Company is positioning
itself to commence construction of the mine and processing facilities,
immediately followed by initial production, as soon as the Empire Plan is
approved.

Red Star

A second drill rig is scheduled to arrive on site in the middle of September
2022 and will report to the North Pit/Red Star area upon its arrival. The
month-long drilling program is anticipated to improve the Company's
understanding of mineralization in the area.

Navarre Creek (Gold)

Phoenix Copper submitted a Plan of Operations for drilling activities at
Navarre Creek to the USFS on 15 April 2021 (the "Navarre Creek Plan").  The
USFS posted a public scoping notice of the Navarre Creek Plan on 18 November
2021, and the Navarre Creek Plan was approved on 30 August 2022, clearing the
way for an initial drilling program comprised of up to 60 reverse-circulation
("RC") drill holes from 30 drill pads located on various targets on the
Navarre Creek claim block. The Navarre Creek Plan was approved under a
Categorical Exclusion, meaning that it is categorically excluded from
documentation in an Environmental Assessment or Environmental Impact
Statement, for the following reasons: 1) the initial drilling program will be
completed in one year or less, 2) the Navarre Creek Plan proposes less than
one mile of new road construction (existing roadways will be utilized for
access), and 3) the Navarre Creek Plan proposes use of overland equipment
travel (low ground pressure equipment). The Company has reserved an RC
drilling rig from Alford Drilling that is scheduled to arrive in June 2023.

 

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

                                                      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                 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 / 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 our extensive drill programs which have
defined a NI 43-101 compliant PEA (preliminary economic assessment) 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 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 (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/)

 

END

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