Source - RNS
RNS Number : 9239Q
Phoenix Global Mining Ltd
25 February 2019
 

Phoenix Global Mining Ltd

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

 

25 February 2019

Phoenix Global Mining Ltd

('Phoenix' or the 'Company')

 

Further Strong drill results from Empire Mine

 

The final assays from the 2018 Empire Mine drilling programme show sulphide copper values of 7.14% copper ("Cu"), 5.94 g/t gold ("Au"), and 76 g/t silver ("Ag") over 1.5 metres ("m") outside of the resource pit shell. An update of the November 2017 mineral resource including the 2018 drilling results is underway.  

 

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

 

Drilling Highlights - Empire Resource

 

Stepout Sulphide Copper Intercepts

Hole KX18-62:             6.1 m of 3.78% copper equivalent from 126.5 m depth

including                     1.5 m of 12.80% copper equivalent from 129.5 m depth

Stepout Oxide Copper Intercepts

Hole KX18-59               4.6 m of 1.10% copper equivalent from 41.4 m depth

including                     1.5 m of 1.75% copper equivalent from 42.0 m depth

Infill Oxide Copper Intercepts

Hole KX18-58:             1.5 m of 2.11% copper equivalent from 32.0 m depth

and                              1.5 m of 1.10% copper equivalent from 42.7 m depth

 

Dennis Thomas, Chief Executive Officer, said, "We are pleased to present the results of the last seven drill holes from the 2018 Empire drill programme.  The results include infill and stepout drilling in the north-western portion of the Empire property and are consistent with our expectations. 

 

"Of particular note is the high-grade sulphide intercept of 12.80% copper equivalent in drill hole KX18-62.  This drill hole intercept aligns with a nearby, historically drilled intercept of similar sulphide grade and adds credence to the larger, high-grade sulphide picture that is beginning to develop. In addition,the KX18-62 sulphide intercept is open to the west and at depth.   

 

"The infill and stepout drilling results in the oxides continue to show robust results, with 1.5 m of 2.11% copper equivalent and 4.6 m of 1.10% copper equivalent in holes KX18-58 and KX18-59, respectively.

 

"On another note, the last of the 2018 rock chip sample assays for our Bighorn and Redcastle cobalt projects in Lemhi County, Idaho have been received and we look forward to presenting those results in the very near future."  

 

 

Drilling Update

Phoenix has now completed a total of 8,604 m of drilling at the Empire Mine, consisting of 6,328 m of reverse circulation ("RC") drilling and 2,276 m of diamond drilling. All of the assays from the 2018 drilling, channel, and rock chip sampling have been received. The final RC drill hole results for the 2018 drilling season are KX18-58 through to KX18-64 and are shown below. The results from the Phoenix drilling programmes in 2017 and 2018 can be found on the Phoenix website at www.pgmining.com.

 

 

Empire Mine Drilling Results

Drill Hole

Depth

Composite

%

g/t

%

%

Drill Hole

Number

From

To

Length (metres)

TCu

Zn

Au

Ag

Pb

CuEquiv

Type

KX18-58

32

33.5

1.5

1.40

0.40

0.04

39.60

0.27

2.11

infill

and

42.7

44.2

1.5

0.82

0.19

0.01

15.00

0.04

1.10

infill

KX18-59

41.4

46

4.6

0.66

0.30

0.06

22.40

0.12

1.10

stepout

including

42

44

1.5

1.09

0.38

0.10

36.70

0.15

1.75

stepout

KX18-60


drill hole lost at 30 metres in fractured ground - no sample recovery



stepout

KX18-61

1.5

3

1.5

0.72

0.14

0.09

19.10

0.01

1.05

infill

and

10.7

12.2

1.5

0.44

0.03

0.17

4.4

0.00

1.64

infill

and

32

35.1

3

0.03

0.44

0.02

16.10

0.49

0.54

stepout

KX18-62

51.8

57.9

6.1

0.54

0.13

0.06

2.63

0.02

0.70

infill

and

126.5

132.6

6.1

2.07

0.26

1.79

23.03

0.01

3.78

stepout

including

129.5

131.1

1.5

7.14

0.81

5.94

76.70

0.01

12.80

stepout

KX18-63

30.5

35.1

4.6

0.59

0.15

0.09

18.00

0.15

0.95

stepout

KX18-64


drill hole lost at 49 metres in fractured ground - no sample recovery



stepout

The copper equivalent grade ("CuEqu") is calculated based on metal prices as follows - copper $6,325 per tonne, zinc $2,688 per tonne, gold $1,335 per oz and silver $16.00 per oz.

 

 

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'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.  

 

In 2018 the Company completed 8,604 metres of drilling at Empire. The analytical and geological data from this 93-hole drilling program and 106 channel surface sampling programme is currently being evaluated and modelled in preparation for an updated resource calculation as part of the ongoing Bankable Feasibility Study for the initial open pit mine. Phoenix staff and consultants are systematically assessing and evaluating the recent data and incorporating this data into the existing database which includes all of the information used in the November 2017 resource estimate and in the April 2018 Preliminary Economic Assessment.

 

As reported throughout late 2018, mineralised drill hole intercepts were prevalent in multiple directions outside of the previously modelled open pit mine, particularly to the north in the newly discovered Red Star area.  The 2018 drilling programme obtained numerous high grade interceptions, including grades of 12.05% copper, 20% lead, 5.83% zinc, 2.52g/t gold and 580 g/t silver, all of which will be included in the updated resource estimate. Known mineralisation now covers a strike length of 3.5 kilometres within the Company's claim block. The April 2018 pit design covered 1 kilometre of this. The Company continues to believe that the Empire Mine Project, including the historically mined high grade underground orebody, represents a major mineralised system and will continue to explore the underground sulphide mineralisation potential of the Empire Mine in 2019, whilst looking to consolidate land holdings adjacent to the mine.

 

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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