Source - RNS
RNS Number : 1434J
Phoenix Global Mining Ltd
03 December 2018
 

Phoenix Global Mining Ltd

Ticker LSE AIM: PGM, OTCQX: PGMLF / Sector: Mining

 

3 December 2018

Phoenix Global Mining Ltd

('Phoenix' or the 'Company')

 

Newly discovered RedStar Zone - drill hole assays include 35.7 ounce per tonne silver and 20% lead.  Empire Mine zone - further assays include 12% copper and 13.8 ounce per tonne silver.  More evidence of regional mineralisation at the Empire Mine in Idaho

 

Phoenix Global Mining Ltd (AIM: PGM, OTCQX: PGMLF), the North American-focused base and precious metals exploration and development company, is pleased to announce further results from the Company's ongoing drilling programme at the Empire Copper Project in Idaho, USA (the 'Empire Mine'). The results of the 2018 drilling programme, to date, were published in September and October, and can be found on the Company's website at www.pgmining.com.

 

Programme Highlights

·      RedStar zone,

Located 330 metres ("m") north-northwest of the Empire open pit resource shows a transition to a high-grade silver and lead system

The old Horseshoe Mine, 1,200 m to the northwest of RedStar within the 1,837-acre property, operated from 1916 to 1928 with reported grades of 20% lead and over 100 ounces ("oz") of silver per tonne

Three drill holes in October returned assays of 1,111 grams per tonne ("g/t") (35.7 oz) silver and 20% lead over a 1.5 m intersection at RedStar

·      Empire Mine zone,

Drilling in and around the Empire Mine oxidation resource envelope, which covers a 1 kilometre ("km") strike length and is the subject of the ongoing feasibility study, returned high grade copper and silver assay results and continued to confirm the presence of the underlying sulphide mineralisation

·      Mineralisation is now confirmed to extend along a continuous 3.5 km strike length within the property indicating the presence of a major mineralised system

·      A map showing the area can be found on the Company's website at www.pgmining.com in the "News" section

 

Dennis Thomas, Chief Executive Officer, said, "The drilling results from the recently discovered RedStar Zone, together with the surface sampling results reported on 30 October 2018, help confirm that the Empire mineralised system extends well beyond the near surface copper-oxide resource which is currently the subject of our Empire Mine Feasibility Study. The 1,837-acre property is developing into a district-scale opportunity. Assay results of 360 g/t silver and 9.92% lead over 9.1 m, along with a 1.5 m intercept of 1,111 g/t silver and 20% lead, confirm the Company's original hypothesis that the Empire Mine's mineralisation zone is part of a considerably larger mineralised system which includes the RedStar Zone and the Horseshoe Block.

 

"The RedStar Zone and the Horseshoe Block to the north appear to be the "upper" portion of the whole mineralised system with an underlying zone of Empire Mine style copper, zinc, gold and silver mineralisation. The RedStar Zone drilling results, coupled with the precious and base metal production history in the Horseshoe Mine itself, are further evidence of the potential existence of a major orebody along the 3.5 km strike. We have only now begun to understand the full scale of the opportunity.

 

"Systematic mapping, sampling and drilling work outside the oxide resource envelope will certainly continue and we will build on the latest information from the RedStar Zone to confirm the continuity of the mineralisation to the north-northwest from the Empire Mine.

 

"We believed we would find evidence of additional mineralisation by continuing exploration along the whole 3,500 m length of known mineralisation within the property boundary and investigating the mineralised outcroppings and old workings within this large mineralised system. The recent RedStar Zone results appear to be justify our decision.

 

"Finally, the drilling programme around the oxide resource envelope at Empire Mine zone continues to return robust results from both the infill holes and stepout drill holes. Infill holes are targeted to upgrade and increase resources within the preliminary pit outline, while step out holes are designed to expand the resource outline. This drilling will enhance the new resource estimate scheduled for completion in the first quarter of next year. High-grade copper and silver assays, most notably 1.37 m grading 12.05% copper and 444 g/t silver and 49.5 m of 0.57% copper with 11.74 g/t silver, continue to demonstrate the continuity of the oxide resource and provide additional evidence for high grade sulphide at depth.

 

"We look forward to keeping shareholders updated on our progress."

 

Drilling Highlights - RedStar

            Silver and Lead Intercepts

Hole KX18-55:             9.1 m of 360 g/t silver and 9.92% lead

including                     1.5 m of 497 g/t silver and 13.30% lead

Hole KX18-57:             15.2 m of 159 g/t silver and 2.83% lead

including                     1.5 m of 1,111 g/t silver and 20% lead

 

Drilling Highlights - Empire Oxide Resource

Stepout Oxide Copper Intercepts

Hole KXD18-23:            6.1 m of 0.74% copper equivalent from surface

including                     1.5 m of 1.34% copper equivalent from 45.7 m depth

Infill Oxide Copper Intercepts

Hole KXD18-20:            10.4 m of 1.74% copper equivalent from 32.0 m depth

Hole KXD18-22             5.9 m of 4.71% copper equivalent from 33.99 m depth

including                     1.37 m of 16.06% copper equivalent from 33.99 m depth

and                              49.54 m of 1.11% copper equivalent from 80.34 m depth

 

RedStar Zone

The RedStar Zone is located approximately 330 m north-northwest of the Empire open pit resource area within the Empire patented claim boundary.  This boundary is contiguous with the Horseshoe Block to the north and west. A map showing the area can be found on the Company website at www.pgmining.com in the "News" section.  The RedStar Zone was discovered during field mapping and reconnaissance of the northern patented claim boundary and adjacent Horseshoe Block.  Channel samples were collected from the RedStar outcrop itself and results reported by the Company on 30 October 2018.  Three reverse circulation ("RC") drill holes targeting the area at depth were completed and assay results are presented below.  The presence of high-grade lead and silver is consistent with the mineralisation expected at the "top" of similar systems that have not been subject to significant erosion.  The RedStar Zone and the Horseshoe Block appear to be in a down-dropped block of material similar to the Empire Mine zone but it has resisted erosion due to the topography. In this scenario, the equivalent copper mineralisation in the Empire Block may exist below the lead and silver system in the Horseshoe Block and RedStar Zone.

 

The Horseshoe Block comprises 944 acres of unpatented claims contiguous to the Empire property which were staked by Phoenix in 2017 and 2018. The historic Horseshoe Mine is located approximately 1,000 m north of RedStar and approximately 1,330 m north-northwest of the Empire's North Pit.

 

Historical production from numerous adits and shafts in the Horseshoe Block, including the former Horseshoe Mine, Blue Bird Mine, and White Knob Mine, was predominantly from skarnified limestone in contact with porphyritic intrusive bodies. Documented production was predominantly high-grade silver, lead, and zinc occurring as galena and sphalerite.  The White Knob and Blue Bird Mines produced in excess of 12 million pounds of lead and 300,000 oz of silver prior to WWII with reported average grades of 10 oz per tonne ("oz/t") of silver and 17% lead. Grades at the Horseshoe Mine are reported as 20% lead and over 100 oz of silver per tonne. 

 

RedStar zone Drilling Results

Drill Hole

Depth (metres)

Composite

%

g/t

ozs/tonne

Number

From

To

Length (metres)

Cu

Zn

Pb

Au

Ag

Ag

KX18-55

0.00

9.15

9.15

0.43

0.31

0.24

0.03

23.71

0.76

and

16.77

25.91

9.15

0.21

0.78

9.92

0.11

360.64

11.59

including

19.82

21.34

1.52

0.14

0.42

13.30

0.13

497.20

15.99

KX18-56

0.00

3.05

3.05

0.21

0.23

0.18

0.74

24.86

0.80

KX18-57

24.39

39.63

15.24

0.13

1.40

2.83

0.06

159.85

5.14

including

27.44

28.96

1.52

0.06

0.62

20.00

0.17

1111.00

35.72

Drilling Update

Phoenix has now completed a total of 8,604 m of drilling at Empire, consisting of 6,328 m of RC drilling and 2276 m of diamond drilling. All drill samples have been delivered to the ALS Global laboratory in Nevada for assay. The drill hole results received to date from diamond drill holes KXD18-20 through to KXD18-26 and RC holes KX18-53 through to KX18-57 are shown below. The results from the Phoenix drilling programme in 2017 and the 2018 results for 47 RC holes and 13 diamond drill holes, published in September and October, can be found in the Phoenix website at www.pgmining.com.

 

The copper equivalent grade ("CuEqu") is calculated based on metal prices as follows - copper $6,000 per tonne, zinc $2,325 per tonne, gold $1,200 per oz and silver $14.0 per oz.

Empire Mine Drilling Results

Drill Hole

Depth (metres)

Composite

%

g/t

%

Drill Hole

Number

From

To

Length (metres)

Cu

Zn

Au

Ag

CuEqu

Type

KXD18-20

32.07

42.53

10.46

1.20

0.70

0.25

14.72

2

infill

Including

32.07

36.59

4.51

2.15

1.36

0.10

25.01

2.92

infill

KXD18-21

0.00

7.93

7.93

0.42

0.30

0.06

12.19

0.67

infill

KXD18-22

13.78

17.01

3.23

0.86

0.37

0.04

68.37

1.54

infill

and

33.99

39.94

5.95

3.33

0.16

0.31

147.95

4.71

infill

including

33.99

35.37

1.37

12.05

0.13

0.98

444.40

16.06

infill

and

53.66

60.98

7.32

0.31

0.51

1.51

23.76

1.65

infill

and

80.34

129.88

49.54

0.57

0.82

0.22

11.74

1.11

infill

including

119.21

123.78

4.57

1.41

0.19

0.40

16.21

1.86

infill

and

135.03

135.79

0.76

0.29

0.40

0.20

215.60

2.20

stepout

KXD18-23

0.00

6.10

6.10

0.48

0.08

0.23

10.70

0.74

infill

and

45.73

47.26

1.52

0.56

1.48

0.03

25.52

1.34

stepout

KXD18-24

0.00

4.57

4.57

0.59

0.10

0.34

18.15

0.98

stepout

KXD18-25

21.34

22.87

1.52

0.32

0.20

0.02

9.90

0.49

stepout

KXD18-26

drill hole lost at 13.4 metres






stepout

KX18-53

21.34

22.87

1.52

0.36

0.03

0.29

8.69

0.62

stepout

KX18-54

4.57

9.15

4.57

0.23

0.43

0.34

22.33

0.78

infill

and

88.41

89.94

1.52

0.43

0.13

0.35

30.58

0.94

infill

 

Other Results Pending Analysis

There are currently seven RC holes awaiting assay results which should be received later this month and will be reported as soon as possible.

 

Qualified Person

Information in this announcement has been reviewed by Roger Turner ACSM., MSc., MIMMM., CEng., 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.

 

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

Phoenix Global Mining Ltd

Dennis Thomas / Richard Wilkins

Tel: +44 7827 290 849 (Dennis) / 

+44 7590 216 657 (Richard)

 

SP Angel

(Nominated Adviser and Joint Broker)

 

Lindsay Mair / Caroline Rowe

Tel: +44 20 3470 0470

Brandon Hill Capital (Joint Broker)

Jonathan Evans / Oliver Stansfield

 

Tel: +44 20 3463 5000

Blytheweigh

(Financial PR)

Tim Blythe / Camilla Horsfall / Megan Ray

Tel: +44 20 7138 3204

 

Notes

Phoenix Global Mining Ltd (AIM: PGM, OTCQX: PGMLF) 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.

 

Phoenix's flagship project is a brownfield, past producing, copper, gold, silver, zinc and tungsten underground mine, the Empire Mine near Mackay in Idaho. Phoenix acquired an 80% interest in the property in 2015. Based on a total of 315 drill holes a NI 43-101 compliant oxide resource was completed in late 2017. A PEA (preliminary economic assessment) for an open pit heap leach solvent extraction and electrowinning ("SX-EW") mine was completed in April 2018 with a design capacity of 8,000 tonnes of copper cathode a year. In June 2018 a campaign consisting of RC and diamond drilling was started. This programme was designed to upgrade and increase the oxide reserves, provide samples for ongoing metallurgical testwork, geotechnical and hydrological studies and condemnation drilling for the heap leach pad site, waste dump and plant site. At the same time the consultants were appointed to complete a NI 43-101 compliant Bankable Feasibility Study ("BFS"). The lead consultant is RPM Global who are supported by Samuel Engineering, both based in Denver, Colorado. Cascade Earth Sciences of Pocatello, Idaho have been working on environmental and permitting issues since 2016 and form part of the BFS team. Golder Associates are designing the heap leach pad and ponds, and Call and Nicholas are carrying out the open pit slope stability studies.

 

At Empire, 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. In addition, Phoenix has increased the claim area from 813 acres at the time of its acquisition to 1,837 acres, mainly to the northwest, and in so doing has increased the potential for additional oxide and sulphide resources by a total strike length of approximately 1,500 metres towards another brownfield mine, the Horseshoe Mine, which is now within the property boundary.  

 

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 First Cobalt.  Fieldwork, consisting of mapping and sampling and locating drill holes for the 2019 drilling programme, has been completed.

 

The Company has also acquired an exclusive option to explore and develop the Gordon Lake Project, in the Northwest Territories, Canada, which is 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 metal, precious metal and cobalt production company, offering exposure to three high value and high demand metals with compelling demand/supply fundamentals.

 

More details on the Company, its assets and its objectives can be found on PGM's website at www.pgmining.com

 

 

 


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