(Alliance News) - Phoenix Copper Ltd on Monday said a further report on the Red Star and White Knob mine group in the US state of Idaho has confirmed the continuity of mineralisation to the north of the company's Empire mine copper oxide deposit.
The report was published by Phoenix Copper's consultant economic geologist, Nigel Maund, and found high-grade silver, as well as lead and zinc mineralisation, extending "on a northward strike from the main Empire copper deposit" for at least 2.5 kilometres. Copper and gold mineralisation were also found.
The extension was "focused on a series of mineralised shears/faults, along which occur the Red Star resource area, as well as the previously mined White Knob, Blue Bird, and Horseshoe deposits".
Maund's conclusion was that the potential mineralised system which includes Empire, Red Star, and White Knob was "less than 1% exploited and explored" with the northern end of the system " unexplored with indications of substantial ore potential".
Chief Executive Dennis Thomas said: "It was a great pleasure to receive Nigel Maund's report on Red Star, a discovery that we first reported to shareholders in early 2019. He confirms the continuity of the mineralisation northwards from the Empire Mine through Red Star to the old mines of the White Knob group in the Horseshoe block."
"The Red Star discovery is in primary high-grade silver/lead sulphide mineralisation. After only three holes drilled we were able to generate a maiden NI 43-101 compliant resource of some 103,500 tonnes, containing over half a million ounces of silver. Our current view is that Red Star may develop into a high-grade underground silver-lead mine with a modest level of capex," Thomas added
Thomas also said Phoenix Copper plans to fast-track Red Star exploration, sampling and drilling along the trend with the goal being to "reach a development decision by the end of H2 2020". The company will also keep going with its Empire bankable feasibility study programme for an open pit copper oxide project.
The company separately is also conducting "some early exploration work" at its Navarre Creek discovery to the west of the open pit oxide project, according to Thomas.
Shares in Phoenix Copper were up 6.0% at 18.55 pence in London on Tuesday.
By Anna Farley; annafarley@alliancenews.com
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Phoenix Copper. (PXC)