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Highlights
· Proven and Probable mineral reserves - 10.1 million tonnes containing:
o Copper - 109,487,970 lbs
o Gold - 104,000 ounces
o Silver - 4,654,400 ounces
· 66,467 copper equivalent tonnes of contained metal
Ryan McDermott, Chief Executive Officer, commented: "I am very pleased to report the first mineral reserve statement for our Empire open pit copper-gold-silver mine. The Proven and Probable reserves at Empire are 10.1 million tonnes containing 109,487,970 lbs of copper, 104,000 ounces of gold, and 4,654,400 ounces of silver, which equates to 66,467 copper equivalent tonnes.
"This reserve calculation upgrades our mineral resources into mineral reserves that represent the economically mineable portion of the mineral resources. The reported reserves are the result of years of exploration, drilling, and metallurgical testing, followed by meticulous engineering evaluation and analysis. It was estimated using assay data from 485 drill holes, extensive geological modelling, metallurgical recovery test work, geotechnical evaluation, and mine design.
"Mineral reserves meet the requirements of geological certainty, accessibility, and economic viability, and are estimated after allowing for mining and processing dilution, and thus represent the recoverable contained metal that is expected to be delivered to the smelter for refining into saleable product to generate revenue.
"I want to thank our team for their tireless hours of work and their dedication to our Idaho project. I look forward to sharing additional updates regarding the Empire open pit development in due course."
Now we have reserves i'd like to know what the revised NAV is.
It's hard to know exactly the size of the operation that would result from reserves worth in total £ half a billion......and what operating profit or net profit would result etc. .....
but very very roughly I see minimum circa revenue of £20m per year and perhaps a net net profit of minimum £5m per year to be used for further exploration.
I would have thought the market may value us nearer the £35m at present which is a bit disappointing for me as I saw higher in my mind...but hey ho....it would still be a leg up from here.....perhaps 23p SP?????
Purely my thoughts based on peer valuations I quickly did on some juniors and seniors on a relative % basis this morning...probably well off....too many unknowns at this stage.
All IMO only.
GLA
P.S. I would have thought the BOD would need a market cap in excess of £50m....rather than my £35m.....so we'll see what analysists say!!!!
BTW at todays prices the resource has a value of $900m so £700m. Wow
Mineral reserve ✅️
Following news should be imminent:
Economic evaluation released next
AGM called in a few weeks, now in a news rich period, a snippet of PFS released, everything can be discussed.
$25m bonds issued
IMO With a very small tight free float, expect to be back in the 30s very quickly
Closer than ever for Empire to start, and then onto the BIG prize underneath.
Most won't understand the bigger picture, after several months of silence, looks like the news rich period has got the 🟢 light.
Onwards and upwards
DYOR
Phoenix Copper LinkedIn post:
Delighted to announce that we have upgraded the mineral resources at the Empire Open-Pit into mineral reserves.
Highlights include proven and probable mineral reserves of 10.1 million tonnes containing:
Copper – 109,487,970 lb
Gold – 104,000 oz
Silver – 4,654,400 oz
This marks a major stage in developing the Empire Open-Pit mine. The Reserves statement is the result of analysing 485 drill holes and converting those into an economic model for bringing the mine into production.
At current prices, those metals will be worth around $900m, and can be produced profitably and to the highest environmental standards.
Reserves are the integral part of the PFS, reads to me its nearly there to NI43-101 reqs :
"The mineral reserves presented herein are an integral part of the Company's ongoing pre-feasibility studies and will be reported in a NI43-101 PFS in due course."
Someone suggested on ADVFN that my figures are on the low side. I did say "minimum".
Really depends on the size of our processing choice in the short term. Too many unknowns for now. But I see us starting fairly small and growing each year.
So long as we have excess net net profit to explore further and that will be the exciting bit in about three years or four!
Hopefully the profit will grow quickly to afford dividends before 2030.
Would rather we under promise rather than under deliver...been too much the other way lately!
GLA