REG - Phoenix Copper Ltd - Red Star Drilling Results

Phoenix CopperAnnouncement

12/01/2022 07:00

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RNS Number : 1259Y  Phoenix Copper Limited  12 January 2022

Phoenix Copper Limited / Ticker: PXC / Sector: Mining

12 January 2022

Phoenix Copper Limited

('Phoenix' or the 'Company')

 

Red Star Drilling Results

Exploratory drilling at Red Star encounters further copper, gold, silver, zinc
and lead mineralisation

 

Phoenix Copper Ltd (AIM: PXC; OTCQX: PXCLF; OTCQX ADR: PXCLY), the AIM quoted
USA focused base and precious metals emerging producer and exploration
company, is pleased to announce the assay results from additional drilling at
the Red Star silver - lead deposit, adjacent to the Empire Mine Open Pit
Project, Custer County, Idaho, USA.

 

Highlights:

·    In a programme designed to test and help delineate the boundaries of
the magnetite zones, seven exploratory reverse circulation ("RC") holes were
drilled at Red Star, totaling 876.3 metres ("m"), all of which encountered
further mineralisation.

·    Silver and lead grades encountered in the drilling are consistent
with, or exceed, those reported in the Red Star maiden resource; copper, gold
and zinc are also encountered in significant quantities.

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

Hole RS21-01

·    27.4 m of 0.69% copper, 0.8 grammes per tonne ("g/t") gold and 14.9
g/t silver starting at a depth of 38.1 m,

o  including 7.6 m of 1.61% copper, 2.3 g/t gold and 38.6 g/t silver from
50.3 m,

o  and including 1.5 m of 2.71% copper, 3.9 g/t gold and 50.7 g/t silver from
51.8 m

Hole RS21-02

·    36.6 m of 0.52% copper, 0.5 g/t gold, 24 g/t silver, 0.28% lead, and
0.64% zinc starting at a depth of 82.3 m,

o  Including 13.7 m of 23.9 g/t silver and 1.46% zinc from 82.3 m,

o  Including 1.5 m of 0.56 g/t gold, 92.3 g/t silver, 3.13% lead, and 2.77%
zinc from 83.8 m

o  Including 7.6 m of 1.35% copper, 1.2 g/t gold and 49.0 g/t silver from
102.1 m

Hole RS21-05

·    7.6 m of 0.20% copper, 0.3 g/t gold, and 17.4 g/t silver from 35.1 m
depth

o  Including 3 m of 0.29% copper, 0.7 g/t gold, and 28.9 g/t silver from 39.6
m

·    These results, and the results of the ground magnetic survey recently
completed on Red Star, will be used to target a planned 3,000 m diamond core
drilling programme in 2022.

 

Ryan McDermott, Chief Executive Officer, said, "I am delighted with the latest
drill results from the Red Star program. All seven drill holes encountered
mineralization consistent with, if not exceeding, the grades in the maiden Red
Star resource, further demonstrating the widespread polymetallic
mineralization at Empire, and the continuity of a northerly trending system.

"This drilling confirms that the surface geology and geochemistry, as well as
the magnetic anomalies identified in the ground magnetics survey reported on
20 October 2021, show a continuous northerly-trend toward the Horseshoe-White
Knob project as expected, and are reliable and provide prospective drill
targets for a planned 3,000 m core drilling program in 2022.

"The 2021 Red Star ground magnetics survey identified three magnetic zones
east-southeast of the Red Star discovery outcrop covering nearly 46 acres.
These seven exploratory drill holes, RS21-01 to RS21-07, targeted specific
areas within those 46 acres for the purpose of providing subsurface
exploratory information for future drilling programs.  These latest drilling
results have accomplished that purpose, and the Phoenix team is excited to
apply what we have learned to our next phase of Red Star drilling.

"In addition to our ongoing exploration programs, 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. The evaluation of the Navarre Creek gold project, ahead
of an anticipated exploratory drilling program in 2022, is also in progress,
as is the planned reporting of the results of the Navarre Creek ground
magnetics survey and geophysical program in the coming weeks.  I look forward
to an exciting year ahead for the Company and wish all our stakeholders a
happy and healthy 2022."

 

Background

During the 2021 field season, a ground magnetics survey was conducted in the
Red Star project area.  The results of the survey identified three subsurface
magnetite zones east of the Red Star discovery outcrop, which had not been
apparent in the surface outcrop. In early October 2021, a RC drill rig became
available for a short period of time and drilled seven exploratory holes at
various locations throughout the newly identified magnetic zones as a
precursor to a future and more extensive diamond core drilling programme.

The Red Star exploration programme was designed to test and help delineate the
boundaries of the magnetite zones and to provide geochemical data and
targeting for the next phase of drilling.  The results confirmed the
continuity of magnetite related mineralisation along 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 Empire
Open-Pit deposit.

 

Table 1 - Red Star Reverse Circulation Drilling Results January 12, 2022

 Drill Hole  Intersection Metres*        g/tonne     %     %     %     Mo      W
 Number      From     To       Interval  Au    Ag    Cu    Pb    Zn    ppm     ppm
 RS21-01     38.1     65.5     27.4      0.8   14.9  0.69  0.00  0.03  7.6     5.0
 including   50.3     57.9     7.6       2.3   38.6  1.61  0.00  0.03  2.0     5.0
 including   51.8     53.3     1.5       3.9   50.7  2.71  0.01  0.04  3.0     5.0
 RS21-02     51.8     54.9     3.0       2.0   2.7   0.01  0.05  0.06  7.0     5.0
 and         82.3     118.9    36.6      0.5   24.0  0.52  0.28  0.64  147.3   61.3
 including   82.3     96.0     13.7      0.2   23.9  0.07  0.72  1.46  380.1   24.4
 including   83.8     85.3     1.5       0.6   92.3  0.18  3.13  2.77  2950.0  90.0
 including   102.1    109.7    7.6       1.2   49.0  1.35  0.00  0.16  4.8     6.0
 RS21-03     30.5     32.0     1.5       0.1   13.2  0.28  0.01  0.29  2.0     5.0
 RS21-04     50.3     62.5     12.2      0.4   16.5  0.12  0.07  0.04  47.9    293.8
 including   53.3     57.9     4.6       0.9   24.5  0.15  0.08  0.04  60.3    403.3
 RS21-05     7.6      15.2     7.6       0.2   9.2   0.16  0.01  0.04  1.4     5.0
 RS21-05     35.1     42.7     7.6       0.3   17.4  0.20  0.02  0.21  2.2     8.0
 including   39.6     42.7     3.0       0.7   28.9  0.29  0.02  0.24  2.5     12.5
 RS21-06     173.7    176.8    3.0       0.5   7.9   0.29  0.01  0.12  4.0     10.0
 RS21-07     42.7     65.5     22.9      0.0   2.2   0.01  0.01  0.21  2.4     5.3

 

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

 

 

Assay Quality Control

HQ drill core is logged by Konnex personnel at Phoenix's drill core facility
located in Mackay, Idaho, USA. The drill core is then sawed 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.

RC drill samples are collected in bags. One sample is collected per each
five-foot interval (1.52m) down the hole. A representative sample is also
collected and kept for future reference at the Phoenix facility. Phoenix's
geologists carry out the sample preparation and insertion of the duplicates,
blanks, and certified reference material at the site before sending the sample
batches to the ALS Global laboratory for the same processing and analysis as
the diamond drill core.

 

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 (Nominated Adviser)                 David Hignell / Caroline Rowe                 Tel: +44 20 3470 0470
 Tavira Securities Ltd (Joint Broker)         Jonathan Evans / Oliver Stansfield            Tel: +44 20 7100 5100

 WH Ireland (Joint Broker)                    Harry Ansell / Adam Pollock / Katy Mitchell   Tel: +44 207 2201666
 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.

More details on the Company, its assets and its objectives can be found on
PXC's website at https://phoenixcopperlimited.com.

 

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