Last checked at 28 Feb 2018 07:00
Phoenix Global Mining Ltd / Ticker: AIM:PGM / Sector: Mining
28 February 2018
Phoenix Global Mining Ltd ('Phoenix' or the 'Company')
Acquisition of the Gordon Lake gold property, Canada
and appointment of a Non-Executive Director
Phoenix Global Mining Ltd (AIM:PGM.L), the AIM quoted, North American-focused base and precious metals exploration and development company, is pleased to announce that it has entered into an exclusive option to acquire 80% of the high grade Gordon Lake gold property in the Northwest Territories, Canada, from ExGen Resources Inc (EXG: TSX-V).
Highlights
o Strategic expansion of North American mineralised footprint which now includes three high-value and high-demand commodities: copper, cobalt and gold
o Gordon Lake Gold Property has a similar high grade geological setting to previously producing mines in the area including the Con, Giant and Discovery Mines, with grades up to 21 g/t Au over 7.2 metres
o Previous exploration limited to 4 of 17 identified zones with gold mineralisation open at depth, making it a potential low-cost underground gold mine
o Option cost of $25,000
o Jason Riley, President of ExGen, which will retain a 20% interest in the Project and also retains a 20% interest in the Company's flagship Empire Copper Project, to be appointed to the board of Phoenix as a non-executive director
Dennis Thomas, the Company's CEO, said, "I am pleased to report Phoenix's further collaboration with ExGen and we look forward to creating value at the Gordon Lake property in Canada, which we have considered to have significant exploration merit for some time. We have a strong team of geologists and consultants in the Company who can add value at Gordon Lake. The region has been a prolific gold producer in the past and the Gordon Lake "footprint" is similar to other significant historic gold producing operations in the area. Exploration on the property to date has concentrated on only 4 of 17 identified zones with gold mineralisation open at depth, making it a potential low-cost underground gold mine. The acquisition of Gordon Lake reinforces our focus and investment into the safe jurisdictions of North America in a most cost-effective manner and also continues to consolidate the close relationship that we have with ExGen Resources Inc.
"Furthermore, we welcome Jason on to the board of the Company. We have worked with him closely in the past, especially on the Empire Mine redevelopment in Idaho and we feel his joining us will enhance the Company's presence further in North America.
"However, the Company's clear focus remains on the early development of the Empire Mine, which is proceeding well."
Background on Gordon Lake (the "Project")
The Gordon Lake gold property consists of two mining leases covering an area of 609 hectares on the northern edge of Gordon Lake, some 110 kilometres northeast of Yellowknife in the Northwest Territories of Canada. It is accessed by the Lupin winter road which traverses the west side of the property.
The Project contains 17 zones of high grade shear hosted gold mineralisation, over a 1 kilometre strike length, which have been identified by geophysical surveys and 59 mineralised diamond core holes drilled into four of these 17 zones which include the following intersections:
Drill Intersections in Metres | Au Grade | |||
Hole No. | From | To | Intersection | Grams / Tonne |
South Zone No 9 Vein Drill Intersections over 6 g/t | ||||
88-41 | 12.30 | 17.10 | 4.80 | 34.1 |
88-42 | 27.40 | 31.20 | 3.80 | 10.4 |
88-62 | 46.10 | 53.50 | 7.40 | 19.4 |
88-64 | 80.70 | 83.80 | 3.10 | 14.1 |
88-69 | 109.50 | 116.70 | 7.20 | 21.0 |
88-70 | 124.20 | 126.90 | 2.70 | 8.6 |
88-73 | 167.50 | 170.00 | 2.50 | 9.7 |
88-74 | 161.10 | 164.40 | 3.30 | 11.3 |
88-77 | 159.35 | 159.50 | 0.15 | 47.6 |
88-79 | 201.80 | 203.80 | 2.00 | 7.5 |
88-80 | 240.00 | 246.45 | 6.45 | 11.3 |
VL9-05-06 | 46.75 | 47.40 | 0.65 | 7.9 |
49.30 | 49.36 | 0.06 | 38.8 | |
VL9-05-07 | 44.72 | 45.44 | 0.72 | 6.5 |
VL9-05-08 | 60.48 | 61.02 | 0.54 | 86.0 |
South Zone S3 Vein Drill Intersections over 6 g/t | ||||
88-61 | 41.62 | 43.62 | 2.00 | 6.6 |
83-31 | 20.00 | 22.00 | 2.00 | 8.2 |
Union Zone Drill Intersections over 6 g/t | ||||
88-52 | 34.95 | 37.95 | 3.00 | 7.0 |
88-56 | 45.70 | 46.70 | 1.00 | 7.0 |
VLU-05-02 | 26.09 | 27.02 | 0.93 | 13.1 |
VLU-05-03 | 34.56 | 35.66 | 1.10 | 10.1 |
VLU-05-04 | 33.81 | 34.31 | 0.50 | 8.3 |
37.00 | 37.59 | 0.59 | 8.8 | |
Main Zone Drill Intersections over 6 g/t | ||||
88-46 | 9.68 | 10.70 | 1.02 | 8.7 |
88-47 | 62.75 | 64.30 | 1.55 | 6.5 |
NB Hole 88-69 intersection includes 75.2 gms/tonne over 2 metres | ||||
Source: NI 43-101 Report - | ||||
Gordon-Ven Lake Property Technical Report - Aurora Geosciences Ltd - June 29 2011 | ||||
This series of closely spaced gold zones occur along a broad shear zone in a geological setting similar to that of the Giant, Con and Discovery mines to the south.
Gold had been discovered near the Great Slave Lake in the 1890s but significant gold exploration in the area only started in 1935. In 1938 the Con Mine started production and Giant Mine in 1948. In 1950 The Discovery Mine located 84 kilometres north of Yellowknife came on stream.
The production profiles of these mines were as follows:
Mine | Oz Gold | Average Recovered | Years in Operation | |
Produced | Grade g/tonne | From | To | |
Con Mine | 5.30 million | 14.85 | 1938 | 2003 |
Giant Mine | 7.12 million | 13.42 | 1948 | 2004 |
Discovery Mine | 1.03 million | 33.72 | 1950 | 1969 |
At Gordon Lake the shear zones have the same geological footprint as Con, Giant and Discovery. The zones explored to date are approximately 140 metres long, 1 to 11 metres wide and open at depth. The deepest hole to date is 246 metres in the No 9 Vein of the South Zone and open at depth in all 4 zones. The other 13 known zones have yet to be assessed.
Initial Work Plan
Phoenix will carry out a preliminary detailed assessment of Gordon Lake. The objective over the medium term will be to design and cost a field work programme to generate measured and indicated resources over a 2-3-year period to justify a small high-grade underground mine.
Terms of the Agreement
The Company has paid ExGen an initial $25,000 to secure the option over 80% of the Project.
Exercise of the option requires Phoenix to issue 2 million shares in Phoenix to ExGen within 90 days of the option, and to spend a minimum of $250,000 on the Project within twelve months of the option. In addition, the Company has agreed to pay an annual payment of $25,000 for the first two years, and $50,000 per annum thereafter, until completion of the BFS.
ExGen will retain a 20% carried interest until construction and a 2.5% NSR from commercial production.
Director Appointment
Phoenix is pleased to announce the appointment of Mr Jason Riley as Non-Executive Director to the Board of the Company. Mr Riley is currently President of ExGen Resources Inc, the Vancouver-based royalty company which is the 20% partner in the Gordon Lake Project and Konnex Resources Inc, which is developing the Empire Mine in Idaho, USA.
The information required by Schedule 2 Paragraph (g) of the AIM Rules for Companies in relation to the appointment of Jason D Riley (aged 38) is as follows:
Current | Past within 5 years |
ExGen Resources Inc Konnex Resources Inc Canadian Professional Management Services Inc EVOS Media K2 Resources |
Save as disclosed above, there are no further disclosures required to be made in respect of the appointment of Jason Riley under Schedule 2(g) or Rule 17 of the AIM Rules for Companies.
Qualified Person
The information in this announcement has been reviewed by Roger Turner A.C.S.M., M.Sc., M.I.M.M.M., C.Eng., 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.
**ENDS**
For further information please visit www.pgmining.com or contact:
Phoenix Global Mining Ltd | Dennis Thomas / Richard Wilkins | c/o St Brides Partners +44 20 7236 1177 |
SP Angel (Nominated Advisor) | Lindsay Mair / Caroline Rowe | Tel: +44 20 3470 0470 |
Brandon Hill Capital (Broker) | Jonathan Evans / Oliver Stansfield | Tel: +44 20 3463 5000 |
St Brides Partners (Financial PR) | Charlotte Page / Susie Geliher | Tel: +44 20 7236 1177 |
Notes
Phoenix Global Mining Ltd (AIM: PGM) is a North American-focused, base and precious metal explorer and developer, which is fast-tracking the historically-producing Empire Mine in Idaho, USA, back into production and exploring for cobalt in Idaho and gold in Canada.
Having established an initial copper oxide JORC and NI 43-101 resource of 19.4 mt grading 0.47% copper ('Cu') for 90,547 t contained Cu, plus zinc, gold and silver, Phoenix has defined a two-phase development strategy. Phase One is focused on commencing low cost, open pit production from the current oxide resource, targeting 7,000t copper cathode per annum. Stage Two will look to extend the life of mine by targeting the deeper (below c.120m), higher grade copper sulphides, where intercepts of up to 11.4% Cu have been recovered. Preliminary Economic Analysis work on the priority open pit oxide resource is already underway. 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.
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 US Cobalt. Exploration will continue during 2018 to identify drilling targets.
The Company has also acquired an exclusive option to explore and develop the Gordon Lake Project, in the Northwest Territories, Canada, 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 a low risk, mining-friendly jurisdiction with excellent infrastructure, Phoenix is looking to fulfil its ambitions to become a mid-tier base metal producing company, offering exposure to three high value and high demand metals with compelling demand/supply fundamentals.