Last checked at 5 Oct 2017 07:00
Phoenix Global Mining Ltd / Ticker: PGM / Sector: Mining
5 October 2017
Phoenix Global Mining Ltd ('Phoenix' or the 'Company')
Excellent drill results to support an increased copper resource at the Empire Mine, Idaho
Phoenix Global Mining Ltd (AIM:PGM), the AIM quoted, US-focused copper exploration and development company, is pleased to announce further drill results from its recently completed 28 drill hole reverse circulation ('RC') and diamond drill programme at the Empire Copper Mine in Idaho, USA (the 'Empire Mine').
Highlights
· Latest batch of drilling results include the following from the AP Pit oxide deposit:
o 9.2m @ 2.28% copper ('Cu'), 44.78 g/t silver ('Ag') and 1.95 g/t gold ('Au') (Cu equivalent grade 3.88%)
o 32m @ 1.43% Cu, 46.28 g/t Ag and 1.36 g/t Au (Cu equivalent grade 2.68%)
· Final batch of results from six holes now awaited - due to be released in the coming weeks
· First of two diamond drill holes targeting the higher grade and deeper sulphide mineralisation is underway (targeting depth of 315m) - results expected by end of November 2017
Dennis Thomas, the Company's CEO, said, "Our Empire Mine programme continues to make rapid progress and the latest batch of drill results from the AP Pit continues to exceed management expectations. Significant copper intersections include 9.2m of 2.28% and 32m of 1.43% plus significant gold and silver by-products. The average grade of the existing JORC resource is 0.55% copper. I am also pleased to report that we have now begun drilling the first diamond drill hole targeting the deeper sulphides underlying the AP Pit. We believe these deeper sulphides have the potential to host higher copper grades, which could significantly enhance the potential of our project. Finally, we continue to be on track to deliver a new JORC Resource on the oxide resources in the AP Pit by the end of November 2017."
Drilling Programme and Results to date
The Company's drilling contractor, AK Drilling Inc. completed the initial 28 drill hole programme in the AP Pit oxide deposit in September 2017. This included 21 reverse circulation drill holes and 7 PQ and HQ diamond drill holes. The following assay results show the results from 17 of these holes. Holes 1 through 12 were reported on 12 September 2017. The results for holes 13 to 17 have been received since that date.
Hole | Intersection Metres | % | g / tonne | % | ||||||||
Number | From | To | Interval | T Cu | Zn | Ag | Au | Cu Equiv | ||||
1 | KX17-2 | 0.0 | 29.0 | 29.0 | 0.46 | 7.72 | 0.17 | 0.63 | ||||
2 | KX17-3 | 0.0 | 22.9 | 22.9 | 0.66 | 0.10 | 40.76 | 0.15 | 1.14 | |||
including | 16.8 | 21.3 | 4.6 | 2.06 | 92.88 | 0.17 | 2.95 | |||||
29.0 | 36.6 | 7.6 | 0.37 | 0.10 | 15.99 | 0.10 | 0.61 | |||||
41.2 | 62.5 | 21.3 | 0.86 | 1.22 | 13.03 | 0.14 | 1.61 | |||||
56.4 | 61.0 | 4.6 | 1.65 | 2.30 | 3.37 | 0.04 | 2.74 | |||||
3 | KX17-4 | 0.0 | 16.8 | 16.8 | 0.07 | 7.92 | 0.60 | 0.51 | ||||
39.6 | 86.9 | 47.3 | 0.23 | 0.11 | 6.64 | 0.10 | 0.40 | |||||
4 | KX17-6 | 13.7 | 65.5 | 51.8 | 0.42 | 9.16 | 0.24 | 0.65 | ||||
including | 13.7 | 19.8 | 6.1 | 1.13 | 13.20 | 0.04 | 1.27 | |||||
5 | KX17-7 | 0.0 | 35.1 | 35.1 | 0.29 | 0.70 | 12.56 | 0.70 | 1.15 | |||
including | 29.0 | 35.1 | 6.1 | 1.10 | 1.05 | 30.40 | 0.07 | 1.87 | ||||
77.7 | 85.4 | 7.7 | 0.07 | 1.12 | 2.06 | 1.02 | 1.23 | |||||
6 | KX17-8 | 10.7 | 18.3 | 7.6 | 0.40 | 12.34 | 0.04 | 0.53 | ||||
36.6 | 42.7 | 6.1 | 0.30 | 0.22 | 28.70 | 0.10 | 0.70 | |||||
89.9 | 93.0 | 3.1 | 1.16 | 0.20 | 38.40 | 0.35 | 1.79 | |||||
7 | KX17-9 | 0.0 | 70.1 | 70.1 | 0.34 | 5.85 | 0.38 | 0.63 | ||||
including | 0.0 | 16.8 | 16.8 | 0.82 | 11.91 | 0.12 | 1.00 | |||||
including | 39.6 | 48.8 | 9.2 | 0.55 | 0.12 | 10.28 | 1.06 | 1.36 | ||||
8 | KX17-10 | 0.0 | 44.2 | 44.2 | 0.36 | 0.13 | 10.77 | 0.05 | 0.54 | |||
including | 9.1 | 12.2 | 3.1 | 1.02 | 25.30 | 0.05 | 1.27 | |||||
9 | KX17-11 | 12.2 | 64.0 | 51.8 | 0.51 | 0.11 | 16.09 | 0.07 | 0.74 | |||
including | 12.2 | 29.0 | 16.8 | 1.02 | 33.99 | 0.03 | 1.33 | |||||
10 | KX17-12 | 24.4 | 32.0 | 7.6 | 0.60 | 17.84 | 0.09 | 0.81 | ||||
11 | KX17-13 | 7.6 | 13.7 | 6.1 | 0.22 | 5.33 | 0.08 | 0.32 | ||||
48.8 | 54.9 | 6.1 | 0.20 | 17.95 | 0.10 | 0.41 | ||||||
12 | KXd17-1 | 24.4 | 64.0 | 39.6 | 0.30 | 0.36 | 8.20 | 0.08 | 0.58 | |||
including | 24.4 | 30.5 | 6.1 | 1.31 | 0.52 | 24.90 | 0.06 | 1.79 | ||||
including | 57.9 | 64.0 | 6.1 | 0.52 | 0.63 | 16.05 | 0.18 | 1.05 | ||||
13 | KXd17-3 | 18.3 | 25.9 | 7.6 | 0.76 | 0.11 | 28.20 | 0.17 | 1.15 | |||
38.1 | 70.1 | 32.0 | 1.43 | 0.01 | 46.28 | 1.36 | 2.68 | |||||
including | 38.1 | 50.3 | 12.2 | 1.30 | 0.01 | 69.00 | 1.99 | 3.14 | ||||
including | 53.3 | 62.5 | 9.2 | 2.28 | 44.78 | 1.95 | 3.88 | |||||
including | 62.5 | 70.1 | 7.6 | 1.09 | 37.36 | 0.41 | 1.66 | |||||
14 | KX17-15 | 61.0 | 62.5 | 1.5 | 0.60 | 36.2 | 0.30 | 1.1 | ||||
15 | KX17-16 | 16.8 | 25.9 | 9.1 | 0.47 | 0.06 | 19.45 | 0.03 | 0.68 | |||
44.2 | 50.3 | 6.1 | 2.10 | 0.15 | 132.03 | 0.11 | 3.35 | |||||
16 | KX17-17 | 0.0 | 6.1 | 6.1 | 1.06 | 0.48 | 50.48 | 0.87 | 2.25 | |||
10.7 | 22.9 | 12.2 | 0.37 | 0.10 | 13.94 | 0.93 | 1.12 | |||||
including | 12.2 | 15.3 | 3.1 | 0.83 | 0.15 | 40.35 | 1.12 | 1.94 | ||||
17 | KX17-18 | 0.0 | 6.1 | 6.1 | 0.58 | 0.11 | 12.37 | 0.32 | 0.94 | |||
including | 3.1 | 4.6 | 1.6 | 1.25 | 0.15 | 20.40 | 0.67 | 1.91 | ||||
KX17 | Reverse Circulation Holes (RC) |
| ||||||||||
KXd17 | Diamond Drill Holes (PQ & HQ size) |
| ||||||||||
"Copper Equivalent" is the value of all metals expressed as a copper grade
Prices (Sept - copper = US$6,850/tonne | zinc = US$3,080/tonne
silver = US$18.00/oz | gold=US$1,340/oz
The results from a further six holes are expected in October 2017.
JORC Oxide Resource for the PFS
The excellent copper grades received from these holes will enhance the JORC resources, which will be updated on receipt of all assays from the AP Pit drilling programme. With the current zinc, gold and silver prices there is significant value in these by-product metals. The potential for recovering the gold and silver from the same heaps when copper recovery is completed will be investigated.
A key component of the PFS programme is the updated JORC resource which is on track to be issued in Q4 2017.
PFS Programme
Appointed consultancy team who are managing the PFS continue to make good progress with completion of the PFS on track for Q2 2018:
The study consists of the following:
· Update AP pit oxide resources and mineable reserves
· Mine plan, production schedule and capital and operating cost estimates
· Updated metallurgical test work
· Crush and stack design, heap leach pads, ponds and SX-EW plant design and capital and operating cost estimates
· Infrastructure design and costs
· Water, soil, wildlife and vegetation environmental base line study
· Project financial analysis and sensitivity analysis
Sulphide Exploration
The Company has commenced the exploration programme on the deeper sulphide potential resources, where grades of up to 11.4% copper were recorded during the underground mining operations. The first of two diamond drill hole to be drilled from surface, targeting the sulphide zone below the old workings, is underway. This first hole is scheduled to be 315 metres in depth.
Qualified Person
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/ Alex Walker/Robert Beenstock
| 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 US-focused, base metal explorer and developer, which is fast-tracking the historically-producing Empire Mine in Idaho, USA back into production.
Having established an initial copper oxide JORC resource of 12.8mt grading 0.53% copper ('Cu') for 68,200t contained Cu from historical drill holes, 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 by 2020 via an SX-EW plant. 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 Feasibility Study 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. Furthermore, the Mine has an exploration target of between 3.4 to 6.7 million tonnes (derived from historic data), grading 0.34% to 0.50% Cu for 11,560 to 33,500 tonnes of additional contained copper and there is potential to extract additional metals, including gold, silver, zinc and tungsten.
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 copper producing company.