Member Info for RightOn

Hi Stan, you are absolutely correct with your conclusion. Look on the copper deposits like an upturned tree. The leaves are the oxides we see near the surface. The branches represent the sulphides lying below, whilst the porphyry is the tree trunk, and potentially much more wealth, but also deeper. Our drilling programme was suggested by the geologists to go deeper than ever before, and look for the sulphides. If other drilling confirms the first results, sulphides are indeed present, that will be confirmation that the geologists analysis was correct. This will build confidence that the giant tungsten/molybdenum porphyry lies beneath as the geologists predict.

What I like about the way management are developing this project is that they are planning a stepwise approach, keeping everything tightly under their control. That means that when the time is right, and only then, would they invite in third parties, most likely, I would guess, in a JV arrangement. Until then, and past that point, just think of the enormous value this territory and the company will bring us!!

In conclusion, invest today for the massive cash flow off the Empire Open Pit mine, and put away your share certificates for tomorrow, for your pension, for the rewards from going after the deep sulphides, the gold in Navarre Creek, the rich silver vein in Red Star, and the Cobalt, which will remain completely under company control, and without the issue of additional shares. Plus remember that we have explored lass than 1% of the resource to date!! There's so much more to come.

Hi Stan, you are absolutely correct with your conclusion. Look on the copper deposits like an upturned tree. The leaves are the oxides we see near the surface. The branches represent the sulphides lying below, whilst the porphyry is the tree trunk, and potentially much more wealth, but also deeper. Our drilling programme was suggested by the geologists to go deeper than ever before, and look for the sulphides. If other drilling confirms the first results, sulphides are indeed present, that will be confirmation that the geologists analysis was correct. This will build confidence that the giant tungsten/molybdenum porphyry lies beneath as the geologists predict.

What I like about the way management are developing this project is that they are planning a stepwise approach, keeping everything tightly under their control. That means that when the time is right, and only then, would they invite in third parties, most likely, I would guess, in a JV arrangement. Until then, and past that point, just think of the enormous value this territory and the company will bring us!!

In conclusion, invest today for the massive cash flow off the Empire Open Pit mine, and put away your share certificates for tomorrow, for your pension, for the rewards from going after the deep sulphides, the gold in Navarre Creek, the rich silver vein in Red Star, and the Cobalt, which will remain completely under company control, and without the issue of additional shares. Plus remember that we have explored lass than 1% of the resource to date!! There's so much more to come.

I have talked with management a lot over this specific issue. We are perfectly poised to keep the growth in our company under OUR control. As the business develops they will continue to work on internal growth, in manageable steps, resisting the potential of outsiders forcing their way in. Hopefully the shareholder base wil remain loyal. Ultimately someone big will take an interest, but that will only happen when our resources are well defined. But as we develop we will continue to explore and hopefully expand our resources. This is dreaming but I think we will have developed the company under our control till it has a value over £10. Then we we might entertain jv’s, and see the price climb still more. That’s my hope as well as managements.

I should have stated. these are cut and paste extracts, ie direct quotations, from the original reports.

The broker reports are excellent describing the geological situation. These are accessible from the PXC website. Look for instance at the Hardman report from March 2020, and look at page 17 onwards
Here are several extracts from this and subsequent pages:
# It might seem hard to believe, but the US government highlighted the mineral potential of Empire and the surrounding area more than 75 years ago.
# Despite the large number of exploration programmes undertaken prior to PXC, not one of the companies undertook a systematic exploration of the underlying secondary and primary sulphide zones.
# We believe that Empire is located close to the epicentre of mineralisation in the western US.
# In some respects, the Empire porphyry – endoskarn system bears some clear geologic similarities to the World Class 1 category Antamina Mine, Ancash Province, Peru, which is the largest porphyry – endoskarn polymetallic deposit in the world.

Not a copper porphyry, but a Tungsten Molybdenum porphyry!! Much more valuable. That's what the geologist say. And they've been right so far.

Just to remind newcomers, management (chairman and CFO) held a webinar on 1st June and the following are a few of the extracts (and this is the reason why the share price is so undervalued):
• “there is the possibility that Red Star is very large”
• “it may be perfectly feasible to raise the capital and build them (ie Empire open pit and Red Star – the high grade silver mine) both at the same time”
• “We are confident we will expand our US shareholding… and I believe the US market will buy into our company in a big way due course”
• “What will really move the share price is when the market sees that we are actually funded into production without having to add any more shares”
• “we are in a prolific geological district, we know that we are sitting on the epicentre of 3 faults which cross or converge at Empire”
• “We have Bingham Canyon 4 hours down the road, the US’s largest mine”
• “We are absolutely in the right area, and we know there is a substantial ore body down there”
• “We are getting towards being a world class copper deposit, and this is the reason we’re in this”
• “…..… as I’ve said before, this could be a billion dollar company”
• “We know that the open pit will throw back cash very quickly”
• “At the end of 2023 we could potentially be declaring our first dividend”

Any price about $3.60 is good, for that was the price used for the economic analysis. Above $4 and our CEO is doing cartwheels in the street!

I spoke not long ago about a "Meet the Directors" series the company were going to do for us, explaining who they each are, their history, the qualities they bring to PXC, and why they believe so strongly in the company. I am told the first one is in the can, and will be released very shortly! It is with Marcus Edwards-Jones, the Executive Chairman.

Watch this space!!

More good news has been published on our Redcastle Cobalt asset, which we passed recently to First Cobalt. I give the link at the bottom, but highlight the following cut and paste:

The Redcastle Property is situated right to the east of Iron Creek, close to the Ruby Zone. First Cobalt believes that the Ruby Zone continues to the Redcastle Property. This is why it is willing to pay $50,000, and 200,000 shares, and also to expend $1.5 million on exploration over the next three years, to acquire a 51% interest in the property. It can be expanded to 75% by paying further $150,000 and expending another $1.5 million over the subsequent two years.

This could be really good for us, to achieve a cash flow from an asset, which we would have been setting to one side due to higher priorities in the Empire zone.

https://seekingalpha.com/article/4439979-first-cobalt-stock-attention-switches-to-idaho

Yes, but they have to declare if more than 3% holding, and there's no one there yet.... Just think of what would happen to our share price if someone decided to take up even 5%!. And I am hoping that the institutions do build, as again they would be mopping up the shares. Also, remember that the single largest shareholder (Martin Hughes) is a personal and long term friend of our Chairman. No, I feel quite easy that we're in safe hands for a very large raise in share price before anyone would be allowed to take us over.

I think that you are correct Richyf3 that we will be on the radar of large companies, but I disagree about the time frame. It's still too early, for 2 reasons. First because the large companies make their money from operating known assets efficiently, and not from taking a plunge into a company without a yet to be defined resource. Second, no large company has yet invested into our business, so any approach would at the present time be hostile, and easily fought, and they know what. Why waste their efforts?

Wait 3 - 4 years though, and this may change. Indeed, I think we hope it will. Then we'll be looking at £5 - £10 per share, maybe more. I would wait for that!

I managed to catch up with a director, who was ebullient. He said that perhaps the market is recognising for the first time what the directors have been looking at in the face all along. “We expected to find the sulphides at depth, and this has always been the case since we took on the project, and always been very obvious to us. We see the opportunities all around and are excited. This substantiates what we have always known and believed. Frankly this is a standard geological setting. Historically the mine has mined high grade sulphide veins and leads (this is a mining term akin to underground alleys of minerals), and certainly we would look to hopefully get similar interceptions. This is outside the area historically mined, and that’s precisely the object of this programme. There may be a change in mineralogy as we go down in depth, and we may start to intercept higher values of Tungsten at depth. Don’t forget the final shipments before the mine closed were high grade tungsten, Scheelite. This reported average grades up to 4.28% WO3 in places. The average grades of the mine over life of mine from 1901 to 1942 was 3.6% copper, 1.6g/ton of gold, and 55.9g/ton of silver. We are getting into this territory, through and beneath, and in fact we are now into new territory. This is very exciting. In terms of mining, this would be a standard mine, without specific difficulty. It is easy to access, since we go into depth straight in via the side of a mountain.”

Concerning the pictures he commented “It’s as good a run of core as I have seen, and I have seen many, many cores! We do not know the true width, but we do know that we have mined through 12.6 metres of highly mineralised sulphides, which is excellent. This is confirmation though that there are sulphides below the pit, and this corresponds exactly with our model.”

He ended with “All our models are based on very sound geology, and we look forward to receiving the results from our other projects, like Navarre Creek, Red Star and the others.”

What more is there to add than that? Can you feel his excitement?

First five pictures https://phoenixcopperlimited.com/photo-gallery

Hi Mike. That's an easy one, because I already have the answer. This was a drill which encountered an old mine working when going down. It needs solidity round it to drill, to hold it steady, so they are waiting for some casing tubes, which should arrive any day now before continuing. It's a regular happening around old mine workings, and nothing to get worried about.

Yes, this is a potentially billion dollar company in the making. The RNS today is just one step along the way, but it confirms everything that the geologists have been predicting. With the sort of size of resources that has been discussed, and the clever plan from the BoD to grow the business from profits, we could well be seeing a 20 times uplift to our share price within few years. That could be life changing for some of us!

Here's a few more words after a little more study. The information is very encouraging indeed to see, and the initial concentrations seen with 75% total sulphides is quite exceptional. Take a look at the Sulphide mineralised concentrations (up to 25%) from a depth of 173 metres over 7.9 metres, and then add to that Sulphide mineralised concentrations (up to 75%) from a depth of 181 metres over 4.7 metres. That’s a continuous seam of 7.9 plus 4.7 metres = 12.6 metres. That’s exceptional! Let me offer some highlights:
• These results are giving us exactly what were hoping (planning) to find, and exactly what the geologists said we would find. That’s important.
• These results show the indications that this is a major system
• We are below the deepest historic mine, so this deposit is just waiting for us in its entirety.
• A few words now on the ores found:
• Chalcocite is generally found at the junction between oxide and sulphide layers, so it is telling us where we are leaving the oxides and entering the sulphides. A very useful indicator.
• Chalcopyrite is the world’s principal source of copper. Very encouraging indeed. Approximately 34.5% Cu.
• Molybdenite is the main ore of Molybdenum, and shows that we are moving down towards the porphyry (approx. 60% Mo)
• Molybdenite ores are essentially the only source for rhenium.
• Galena is an important ore of lead and silver
• Bornite copper content can go up to 63%!
• Sphalerite is the most commonly encountered zinc mineral and the world's most important ore of zinc

Conclusions: These results do suggest that what the geologists said we would find, we have indeed found! If so, and if confirmed with the other holes, should bring a dramatic re-rating to PXC’s value. At the present time the valuation is based essentially on the known Empire Open Pit mine and it’s very fast payback. The project is designed to throw off sufficient cash to open up access to these sulphide ores in the deep, and we are now confirming that not only do these exist, but that they are very rich. The sulphide mine should be much more valuable than the oxide pit, which is where our present valuations come from, and so our share price should rise by multiples as the development work continues. Then we can start to think of the huge molybdenum/tungsten porphyry which the geologists have told us lies below even deeper, and below the sulphide layer. This could be a real giant, and towards a world scale mine. And then we have the Red Star high grade silver mine, the Navarre Creek Carlin style gold play, plus the cobalt. This territory is full of riches, and it does look really possible that we will achieve our $1 billion value soon.

I’ll get on to the company and see if I can get any further comment from a director.

This is a great RNS. Let’s put it into perspective. This is about Phoenix’s future. The Empire Open Pit mine is today. This RNS is all about what we’re going to do with the cash we will be throwing off the Empire Open Pit project.

I’ll read it thoroughly and report back within the hour, but this looks really great. They’ve found very high levels of copper in their first hole, and over a very good length. They knew it was in the zone from previous drilling, and from their geologists, but to strike it this rich on the first hole, it’s like that classic oil gusher. Ryan (the CEO) generally doesn’t do excitement, but you can see it here. Just read this and digest “These are exceptional results from the first drill hole, suggesting potentially elevated grades of copper, as well as the presence of gold, silver, zinc, lead and perhaps molybdenum by-products. It reinforces our geological model that the deeper Empire underground deposit represents a major ore system, which we are only just beginning to evaluate and understand.”

We know that the Empire mine is going to be gushing cash. Now we know that little more on where we are going to be investing it. And what an investment it looks likely to be!

I’ll study some more and be back later.

If you meant the sharesoc webinar, it's only avialable on playback to members of sharesoc. I understand that DonaldPond is trying to get some parts for uploading to the company website, and I'll make sure it's announced here, if that happens. But in summary the session was very positive, with everything being presented as on-track for start-up end 2022, and the drilling programmes looking good.

Here's the link to the Telegram Group, deleting spaces https://t . m e/j o i n chat/I5hNdxg-LUTkNvtljGWq1A