Member Info for RightOn

Did anyone notice (for I didn't) the tweet by Phoenix on Twitter "drill, cut, analyse", after which there was a question "what's holding up the first set of Red Star drilling results from Salt Lake", to which Phoenix responded "Yes, we are told results ‘imminent’ but the assaying process has been slowed because of Covid-19 safe operating practices in the workplace coupled with very heavy workload of samples from other companies due to booming metals’ prices!".
They later tweeted "We too eagerly await results both from Red Star and the next Empire batch and will report on them when received."
So there we have this answer, in part anyway. The laboratory are having the delay, and not Phoenix for any nefarious reason.

Silver $26.9/oz; Gold $1944/oz.; Copper $6,342.5/tonne; Zinc $2,360/tonne
Red Star silver PROJECT: today’s fair value share price should be 80.0p (last Monday 62.4p). Actual sp 39.0p.
Empire Open mine RESOURCES: Today’s Measured, Indicated and Inferred value: $1,864,000,000 (last Monday $1,816,000,000)
All metals prices updated this morning.
Comments:
The most dramatic difference is with the price of silver (last Monday $24.06/oz), demonstrating the positive impact of silver increase on the Red Star project. All other prices were generally in line from one week ago. It appears the correction may now be over.

Waferthintam. Welcome to Phoenix. You have made a good choice to join us in PXC. I cannot speak at all for AMC, but I can tell you a little for PXC.
We are a mining company, now in development of our start-up mine. This is a race between the silver of Red Star and the gold in Empire. We are expecting drilling assay results from both over the next couple of months, some imminent, which will be placed into a PEA for issue last Q 2020. We are expecting the first production to be in 2021.
You can expect the share will jump up in stages, with the first jump from positive assay results (we hope), then more results, then the PEA and updated resources. When the finance is raised the project will have mainly derisked, so that will result in another jump, and then another jump at start of production. After that we expect the company to go after the deep ore bodies, which will see the most spectacular raises of all, I suspect.
Other sp increases will come if the price of gold, silver and/or copper rise.
The business environment is very stable and welcoming (Idaho - very friendly indeed to miners), and the environmental issues already examined (none).
For myself, I would be to keep my money invested in PXC and not to trade, as you never know when the next uplifts will come. If the opportunity described by the BoD comes true, then we could see the sp move up by a factor of 20 or even more over the coming years. would you want to miss out on that?

I'm posting a link bellow to an astonishing video from this Tuesday initially posted on ADVFN. It is from Craig Hemke (one of the best precious metals forecasters round), who explains why gold and silver took off, why they are now paused, and where they are going to. I really would recommend everyone to watch.
But if you don't have time, I extract his price predictions at end 2020 :
Gold $2300-2400/oz
Silver $34-36/oz
and in the years after, maybe up 9 times from today's prices.
If we input the end of years prices into the Hardman models, we find our share price based on Red Star should be 130.2p/share, and the Empire Resource valued at well over $2 billion!!!
I looked up this guy (Craig Hempke) after. He has a fantastic reputation, and I liked his conclusions.
hTTps://www.youtube.com/watch?v=QHrNGmxLCpo

Thanks for your support for PXC. To let you know I have no connection with the company, aside being a shareholder, like you guys, but am genuinely motivated to do my own research and then post, by what I see as a once in a lifetime opportunity.

I thought it would be interesting to look at relative values of gold, silver and copper now, compared with earlier this year, to quantify today's situation. I have taken March 12th arbitrarily as the base date, ie 4 months ago. It was essentially a good representative of the mid-point at that time. Compared to March 12th, we have seen the following increases:
Gold +18.5%
Silver +55.4%
Copper +18.0%

These increases go straight to the bottom line, of course, since manufacturing costs do not change, so the impact on our potential future profit is much larger.

Conclusion: The correction of the last days has not made any real material impact on PXC, since the sales prices of our core products remain far, far above what they were in longer history. The above just shows the increased value we have even when compare to the valuations provided by the professional Hardman and WHIreland Research documents.

Updated company value
Silver $24.1/oz; Gold $1875.6/oz.; Copper $6,356.5/tonne; Zinc $2,371/tonne
Red Star silver PROJECT: today’s fair value share price should be 62.4. Actual sp 41.9p.
Empire Open mine RESOURCES: Today’s Measured, Indicated and Inferred value: $1,816,000,000.
All prices updated this morning. Please refer to Monday’s post for the source detail
Comments:
# Despite silver losing substantially our share price remains at an approximate 50% discount compared to Hardman fair price, based solely on Red Star
# Note how despite gold and silver losing the last day, the Empire Resource value has not dropped as much, since copper remains the largest single component of the Empire Mine (45% vs 35% for gold in terms of today's value), and copper held up.
# I believe that daily reporting is excessive, and so will be switching to a Monday weekly report. Next issue Monday 17th, and will include weekly changes, offering a trend.

I promised a write up about Cobalt, but got diverted by the information about Navarre Creek on Phoenix Linked-In and Twitter accounts. Let me switch subjects to Navarre.
First, what is a Carlin-type deposit?
Carlin-type gold deposits represent some of the largest hydrothermal gold deposits in the world. They originated when hot rising gold-bearing bearing fluids (hydrothermal fluids) concentrated along steep, long-lived fault zones. These zones were subjected to repeated periods of alternating compression and expansion, which allowed ore-bearing fluids into a perfect environment for deposition of gold. Fluids, which gathered within lower plate rocks of porous sedimentary rocks such as limestones (and under the upper plate rocks), were soaked up like a sponge, including the gold which we see today.
The gold tends to be spread relatively evenly and widely in this type of deposit, and although present is generally invisible to the naked eye. It is the geology which acts as the guide.

PXC acquired the Navarre Creek claim to the west of Empire in February 2019 as part of a 9.8sq kms acquisition. It has a 6.1km long prospective strike length. The key is that it is geologically very similar to the type of mineralisation found in the Carlin mine in Nevada and along the famous Carlin Trend, host to several multimillion ounce gold deposits.
You can have a relatively easy read about these sort of deposits on hTTps://www.911metallurgist.com/blog/carlin-type-gold-deposit.

The geologists look for evidence of this sort of deposit from things like outcrops and alteration of surface rocks and soils in the form of oxidised Gossans rocks (present), with weathered iron oxide (present), and showing oxidised sulphide mineralisation (present), amongst others. There is also an old antimony mine within the claim block, which is a known pathfinder element for gold and silver. This bears strong characteristics of an epithermal system similar to those exploited very profitably in Nevada. This paragraph, as all the above, comes from published information.

I then called to the company asking for details for what programme they plan to perform in Navarre Creek. They are now mapping the geology in detail and gathering surface samples through channel sampling and trenching, as a forerunner to a future drilling programme. They (we) need to wait for the results of this programme to see how good it is. The first assay results will be out later this year.

If this programme does indicate a good gold prospective as a Carlin-type deposit, then this has the possibility to be very extensive and could be a significant mine in the making.

Silver $28.7/oz; Gold $2009.8/oz.; Copper $6,363.0/tonne; Zinc $2,368.5/tonne
Red Star silver PROJECT: today’s fair value share price should be 90.9p. Actual sp 41.0p.
Empire Open mine RESOURCES: Today’s Measured, Indicated and Inferred value: $1,907,000,000.
Please refer to Monday’s post for the source detail

Hi upupandawaybby, Almost, but not quite. First, we have 62,462,522 share, plus a number of warrants (these are promises to sell at a certain price, which may or not be taken). Assuming all warrants are taken, that equates to a total of 73 220 522 shares. That's not many for a company of this nature at this stage of development.

At the present time we have Red Star which has been calculated out as a project, and given a DCF, based solely on that project. Yes, this excludes all the other assets. However, there are several reasons why the share price has not taken a massive jump up in response to the information coming back. Firstly, the really big jump will be when the large investors, namely the big Funds, come in. But their rules state that they cannot invest in too small companies. But our £ size is approaching this point where we can be invested in, and secondly we have a large fund manager already involved, so his investment may be the trigger for others to dive in. Also most small investors hate too much risk, so the key turning point for them will be when we quantify the risk a little more, such as will come when our resources are further confirmed or after the studies planned for this autumn come out.

Finally, we should only do PREDICTIONS (as compared to speculation) on the known, or state clearly when the numbers offered are indeed guesswork. The KNOWN numbers are Red Star and Empire, as I define every day. The speculation are the other locations as you describe, plus the MASSIVE potential from the deep resources, which if the geologists are correct, will dwarf whatever we find near the surface. The surface may be several billion. The deep may be several tens or hundreds of billions. But we will not to gain knowledge of the deep till we are earning money to fund the deep exploration, namely in about 2 -3 years time, I would guess.

But like you, I firmly believe in holding this share for the long term, expecting that there will also be a significant short term rise.

Silver $28.1/oz; Gold $2030/oz.; Copper $6,437.0/tonne; Zinc $2,393.0/tonne
Red Star silver PROJECT: today’s fair value share price should be 87.4p. Actual sp 38.5p.
Empire Open mine RESOURCES: Today’s Measured, Indicated and Inferred value: $1,919,000,000.

The above are 2 ways of evaluation of 2 separate parts of the company.
Red Star project valued from Hardman Research: hTTps://static1.squarespace.com/static/5914577386e6c0cd77e15c74/t/5ebe429f5807503aff2c88c7/1589527215301/Hardman-Research-Phoenix-Copper-May-2020.pdf
Empire NI 43-101 Compliant Resource from: hTTps://polaris.brighterir.com/public/phoenix_global_mining/news/rns/story/rml988x
Note the Hardman research excludes the value of gold, copper and other metals in Empire (confirmed resources) plus Navarre plus the White Knob Mining Group, and the Cobalt in Bighorn and Redcastle.
All metals prices updated this morning.

MTSparky, you asked if the “share price is based on Today’s Measured, Indicated and Inferred value for Empire and Red Star + the Cobalt”.
First, my apologies, I’m in Wales for a long weekend enjoying sunshine and Brains.

Let me explain the process I go through, which is divided into 2 parts.

The Empire open pit has had over 400 holes drilled into it, so it is reasonably well known, but still continues to be explored and extended. The company presented an “NI 43-101 Compliant Resource Update for the Empire Open Pit Mine showing substantial increase in gold, silver, copper, and zinc”. Look up “NI 43-101 Compliant Resource” if you don’t understand that, for it’s a key mining term. This means for us that the data is essentially a certificate of assets. I have entered these numbers from the RNS for gold, silver, copper and zinc into a spread sheet, and multiply by the price on the chosen day to get an asset value of metal in the ground. It is extremely difficult to get from there to a clear asset number for the company in terms of cash on the balance sheet, which depends on far too many parameters, such as metals concentration, analysis of the surrounding medium, access to the site, economics at the location, local environmental situation, political situation, cost of transportation, access to laboratories, etc, etc. That’s my Mr Sensible coming out. However, and this is where we are extremely fortunate, our BoD have chosen a location for us with everything is ticking absolutely the right boxes for all of the above, so if any project were going to work, it is going to be ours. So we in Phoenix could have reasonable confidence that we could extract all of those metals over time.

Now for Red Star. Here Phoenix BoD identified a “low hanging cherry”, and believed that they could get a silver mine working in short time for lower cost than the copper mine in Empire. They actually do not know the NI 43-101 Compliant Resource yet for Red Star (this is coming from the present exploration programme), but must believe they have sufficient samples to know that the vein is rich, and continuous, to be able to set a project in motion. And their independent geologist obviously agreed with them, and they have quantified a project from this, with DCF valuations coming out. Luckily Hardman left us with a formula for the value to the company from increased silver price, and the resultant impact there should be on share price, so I have just entered this into another spread sheet and present this number. The impact on share price is a relatively simple calculation since as silver (or gold) move up, the additional profit is straight to the bottom line, since costs remain the same.
You also ask about the value of Cobalt. I intend next week writing a little summary of the present situation, but for the moment we have nothing confirmed we could add to our asset base. We do have hope, and I will describe this next week.

Silver $28.2/oz; Gold $2053/oz.; Copper $6,453.5/tonne; Zinc $2,377.5/tonne
Red Star silver project: today’s fair value share price should be 88.0p. Actual sp 38.5p.
Empire Open mine resources: Today’s Measured, Indicated and Inferred value: $1,929,000,000.
All metals prices updated this morning. For sources please see yesterdays's post.

It is the undoubted case that our share price is undervalued. The good news is that this allows us to top up. Let me give my opinion for how things will move.

As we go through the summer and into the autumn we are going to receive a steady flow of news, which should include assay results from Red Star, Empire and Navarre Creek. These will take us into autumn, when the resource geologists at Hard Rock will be putting together an Updated Mineral Resource Estimate. This report will then produce the bankable document upon which finance can be raised, quantifying the recoverable metals in each area. The experts will analyse this report, examine the different projects, balancing cost, project return, time, etc, to come out with definitive plans, hopefully before the end of the year, or early 2021. Then it will be a hop and a skip and a jump into finance, for the project to be up and into production before end 2021. With present precious metals prices, I guess that they will look for the fastest project possible.

It is my experience from a company of this nature that our share price will climb a good way before production starts. I would be surprised if we were not at 100p before year end, and maybe if the present exploration programme delivers positive results, particularly in gold, such as with Navarre, we could be closer to 200p by 1Q 2021.

Note the above are opinions, and not advice.

I think the issue may be the banks could not read joined up writing. Otherwise I'm also at a loss...

Sorry, I left out an important work, now inserted "Increase"
I will now present daily 2 pieces of information.
1) A daily correction for the Red Star project, where Hardman presented professional research showing the DCF price for the Red Star fast track silver project. They showed a correction which should be applied to the share price to account for silver above $19p/oz. Read this in the last paragraph on page 3 of their research.
2) A statement of the current value of the NI 43-101 Compliant Resource in the Empire Mine, stated as value for metal in the ground. This came from the 4th May RNS, with current values for metals.
Comments:
- The Empire results astounded me, showing an approx 30% increase in value of the metals in the open pit! Amazing. And this is for a company today valued at $24 million!
- This share must be the most highly undervalued share on the exchange!

I will now present daily 2 pieces of information.
1) A daily correction for the Red Star project, where Hardman presented professional research showing the DCF price for the Red Star fast track silver project. They showed a correction which should be applied to the share price to account for silver above $19p/oz. Read this in the last paragraph on page 3 of their research.
2) A statement of the current value of the NI 43-101 Compliant Resource in the Empire Mine, stated as value for metal in the ground. This came from the 4th May RNS, with current values for metals.
Comments:
- The Empire results astounded me, showing an approx 30% in value of the metals in the open pit! Amazing. And this is for a company today valued at $24 million!
- This share must be the most highly undervalued share on the exchange!

Today's prices: Silver $27.8/oz; Gold $2050/oz.; Copper $6,525.5/tonne; Zinc $2,370/tonne
Red Star silver project: today’s fair value share price should be 85.6p. Actual sp 37.5p
Empire Open mine resources: Today’s Measured, Indicated and Inferred value: $1,933,000,000.

Sources:
Red Star valued from Hardman Research: hTTps://static1.squarespace.com/static/5914577386e6c0cd77e15c74/t/5ebe429f5807503aff2c88c7/1589527215301/Hardman-Research-Phoenix-Copper-May-2020.pdf
Empire NI 43-101 Compliant Resource from: hTTps://polaris.brighterir.com/public/phoenix_global_mining/news/rns/story/rml988x
Note the Hardman research excluded the value of gold, copper and other metals in Empire (confirmed resources) plus Navarre plus the White Knob Mining Group, and the Cobalt in Bighorn and Redcastle.
All metals prices updated this morning.

Shareseeker10. I take your point, and yes, you are correct, we need to show the overall company assets. Seeking out all metal prices may however be a little time consuming to do every day, so I will issue the Red Star information daily, and update the overall balance weekly (if I have some spare time I'll update more frequently).
Please do come back with other suggestions for additional information or improvements.
Watch this space for the first issue of the updated information, due within 30 minutes.

Silver price this morning at 7am was $27.8. The Hardman Research for the Red Star silver project, with today’s silver price, would value the company at a share price of 85.6p. Actual share price 37.5p.

Note this Hardman price excludes the value of gold, copper and other metals in Empire (confirmed resources) plus Navarre plus the White Knob Mining Group, and the Cobalt in Bighorn and Redcastle.

This morning’s spot gold $2050/oz.

Please excuse me, but your post contained nothing of relevance to Phoenix, and took 10 paragraphs to say in essence “be wary of AIM companies”, a message with which most posters here would wholeheartedly agree.

Furthermore, you sound like a broken record. Let me offer an example. In your post from 9th June on Phoenix you wrote “My worry is as with all small companies, the real risk of years of dilution. Have been in too many aim shares and seen so many similar posts from excited or maybe paid posters, who shout more than the company itself it virtues, how much potential there is, how they won't need 'more' funding as one income will fund the next etc.”. Let me remind you the share price then was 24.5p. Today it is 37.5p, an increase of 53%, and we are further advanced with our fully funded drilling programme, with very positive results starting to come back, and with gold, silver and copper prices in an ever stronger position. Now I personally anticipate a much higher sp, again from my research, which I do post about quite frequently, and I offer substance. I believe that others have rather courteously answered all your previous issues. Let me remind you that your reply to Investorman on 14th June was “your reply has eased my concerns”. Then really, why do you raise identical concerns again? If you could post some concerns specific to PXC, and we will try our best to respond.