Source - RNS
RNS Number : 2953K
Phoenix Global Mining Ltd
10 April 2018
 

Phoenix Global Mining Ltd / Ticker: AIM:PGM / Sector: Mining

10 April 2018

Phoenix Global Mining Ltd ('Phoenix' or the 'Company')

28% Increase to Empire Mine Land Position

 

Phoenix Global Mining Ltd (AIM:PGM.L), the AIM quoted North American-focused base and precious metals exploration and development company, is pleased to announce the expansion of its Empire Mine land position through the addition of 21 unpatented mining claims contiguous to the Company's Horseshoe Claim Block. 

 

Highlights:

 

The Empire Mine land position increases by 397 acres, for a total land package of 1,774 contiguous acres centred on the previously producing Empire Mine and Horseshoe Mine.

The new mining claims are contiguous with the existing Horseshoe Claim Block, extending the eastern and western ends of the block, allowing for future expansion and access. 

Recorded copper, lead, zinc, silver and gold production from the Horseshoe Block as recently as 1979 with reported grades of 3.8% copper and 12% zinc.

Holding cost for the expansion is less than US$3,500 per annum.

Preliminary Economic Assessment on oxide resource at Empire Mine expected imminently ahead of accelerated development plan and commencement of Bankable Feasibility Study activities

 

Dennis Thomas, the Company's CEO, said, "The extension of the Horseshoe Claim Block by 397 acres is a most timely increase in our land position prior to the imminent completion of our Empire Mine oxide Preliminary Economic Assessment  It ensures that, as we now move into Bankable Feasibility Study "mode", we will have a footprint large enough for future operational expansion, particularly to the east of our existing Horseshoe Claim block.  The western extension provides both an enlarged future operational footprint and access to the possible extension of historical Horseshoe Mine mineralisation.  Following the 33% expansion of the Empire oxide resource in November 2017 and understanding the likelihood of additional resource expansion following the upcoming 2018 resource drilling programme, the Company believes it is vital to control adequate footprint for any and all operational expansions."

 

Historical Production

 

Historical production from numerous adits and shafts in the Horseshoe Block, including the former Horseshoe Mine, was predominantly from skarnified limestone in contact with porphyritic intrusive bodies.  Mineralisation is documented as predominantly galena and chalcopyrite, with minor pyrrhotite.  Mining in the area dates back to the early 1900s and records indicate production as recently as 1979.

 

The majority of the recorded production from the Horseshoe area was from the former Horseshoe Mine, with the last shipment of 2,900 tonnes of ore in 1979.  That shipment reported head grades averaging 3.8% copper and 12% zinc.

 

Qualified Person

 

The information in this announcement has been reviewed by Roger Turner A.C.S.M., M.Sc., M.I.M.M.M., C.Eng., Chief Technical Officer and Director of the Company. Mr Turner is a graduate mining engineer from the Camborne School of Mines with an MSc in Economic Geology from Leicester University with more than 40 years' experience in mine development, construction and operation and is a qualified person under the AIM Rules. Mr Turner consents to the inclusion of the information in the form and context in which they appear.

 

Market Abuse Regulation (MAR) Disclosure

 

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.



**ENDS**

 

For further information please visit www.pgmining.com or contact:

Phoenix Global Mining Ltd

Dennis Thomas & Richard Wilkins

c/o St Brides Partners

+44 20 7236 1177

 

SP Angel

(Nominated Advisor)

 

Lindsay Mair / Caroline Rowe

Tel: +44 20 3470 0470

Brandon Hill Capital (Broker)

Jonathan Evans / Oliver Stansfield/ Alex Walker/Robert Beenstock

 

Tel: +44 20 3463 5000

St Brides Partners

(Financial PR)

Charlotte Page / Susie Geliher

Tel: +44 20 7236 1177

 

 

 

Notes

 

Phoenix Global Mining Ltd (AIM: PGM) is a North American-focused, base and precious metal explorer and developer, which is fast-tracking the historically-producing Empire Mine in Idaho, USA, back into production and exploring for cobalt in Idaho and gold in Canada.

 

Having established an initial copper oxide JORC and NI 43-101 resource of 19.4 mt grading 0.47% copper ('Cu') for 90,547t contained Cu, plus zinc, gold and silver, Phoenix has defined a two-phase development strategy.  Phase One is focused on commencing low cost, open pit production from the current oxide resource, targeting 7,000t copper cathode per annum.  Stage Two will look to extend the life of mine by targeting the deeper (below c.120m), higher grade copper sulphides, where intercepts of up to 11.4% Cu have been recovered.  Preliminary Economic Analysis work on the priority open pit oxide resource is already underway.  It is estimated that only 5% of the potential ore system has been explored to date and accordingly there is significant opportunity to increase the resource through phased exploration; the current resource relates to the oxide resource only, which remains open along strike and does not include the deeper, higher grade sulphides. 

 

The Company also holds two prospective cobalt properties in Idaho, US, which are located north of the Empire Mine.  These are situated close to the town of Cobalt and are close to projects being advanced by Canadian junior miners, including eCobalt Solutions and US Cobalt.  Exploration will continue during 2018 to identify drilling targets.

 

The Company has also acquired an exclusive option to explore and develop the Gordon Lake Project, in the Northwest Territories, Canada, a high-grade shear hosted gold project comprising of 17 known mineralised zones of which only four have been tested with 59 diamond drill holes.  The Company will proceed to examine the optimal way forward to develop the project as a low-cost underground gold producer.

 

With a management team that has successfully constructed, commissioned and operated mines and low risk, mining-friendly jurisdictions with excellent infrastructure, Phoenix is looking to fulfil its ambitions to become a mid-tier base and precious metals producing company, offering exposure to three high value and high demand metals with compelling demand/supply fundamentals.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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