Last checked at 4 Sep 2018 07:00
Phoenix Global Mining Ltd / Ticker: PGM / Sector: Mining
4 September 2018
Phoenix Global Mining Ltd ('Phoenix' or the 'Company')
2018 Empire drilling programme identifies two significant mineralised extensions
Infill drilling within the known mineralised zone shows excellent continuity
Appointment of Phoenix Chief Operating Officer
Phoenix Global Mining Ltd (AIM:PGM), the AIM quoted, US-focused base and precious metals exploration and development company, is pleased to announce encouraging results from the Company's 2018 drilling programme at the Empire Copper Mine in Idaho, USA (the 'Empire Mine') and the appointment of Ryan McDermott as Chief Operating Officer of Phoenix.
Highlights
· Step out drilling to the east and west of the Empire Open Pit, as designed in the Preliminary Economic Analysis ("PEA"), has intercepted previously unknown mineralisation including:
o 4.6 metres of 1.53% copper
o 3.0 metres of 2.85% copper
o 13.7 metres of 0.64% copper
o 15.2 metres of 0.42% copper
o 12.2 metres of 0.95% copper, including 3.0 metres of 2.05% copper
o 6.1 metres of 1.09% copper
· Infill drilling inside the PEA open pit to upgrade the inferred resources include:
o 5.9 metres of 1.11% copper
o 7.0 metres of 1.21% copper
o 17.8 metres of 1.19% copper, including 3.0 metres of 3.02% copper
o 18.3 metres of 0.68% copper, including 6.1 metres of 1.67% copper
o 29.0 metres of 0.75% copper
o 6.1 metres of 0.80% copper
· The 2018 drilling programme is progressing on-track with drilling expected to continue into October 2018
· Further drill hole results to be reported shortly - samples from 10 RC and 6 diamond drill holes along with 298 surface channel samples at ALS assay laboratory
· Appointment of Ryan McDermott as Chief Operating Officer of Phoenix
Dennis Thomas, Chief Executive Officer, said, "We are pleased to present the assay results received to date from the 2018 Empire drill programme. The step out drilling portion of the programme is only partially complete, and the results are encouraging. Notable intervals of 12.2 metres of 0.95% copper, 13.7 metres of 0.64% copper and 6.1 metres of 1.09% copper have been reported in previously untested areas. This is of major significance as all the mineralised intercepts are outside of the November 2017 Resource Model reported by Hardrock Consulting. This previously untested ground is still open to the east and at depth, and we are currently targeting follow-up drilling to be completed in the next two months. In addition to these holes, we are drilling possible mineralised extensions on both the north and the south ends of the project and we await the assay results from these holes with interest.
Our infill drilling programme, which is designed to upgrade the inferred resources to the measured and indicated category, shows robust results and this programme will also be completed in the next two months. All new results will be used to update the resource model in which average grade of the "measured and indicated" resource is 0.52% copper. Our hope is that continued drilling results similar to those reported herein will have a positive effect on the overall grade and tonnage, which will materially enhance the economics of the project.
The elevated tungsten, gold and silver values associated with the copper intersections, shown in the table below, are worth noting. Along with the historic gold, silver and tungsten assays, the recovery of these potential by-products will be evaluated in more detail.
We will continue to report new assay results over the next few months as the drilling progresses and the results are received from the ALS Global laboratory in Nevada.
The current drilling programme remains focused on the open pit oxide resources and does not cover the deeper, higher grade, sulphide potential which the Company is keen to develop.
I am also pleased to announce the appointment of Ryan McDermott to the position of Chief Operating Officer of the Company with immediate effect. Ryan, as CEO and General Manager of Konnex, our operating company developing the Empire Mine, has been fundamental to its success to date and we are looking forward to him taking on a wider role in our exploration programmes, not only with the Empire Mine sulphides but also in the Idaho Cobalt Belt, where he has previous experience, and at our Gordon Lake project in the Northwest Territories in Canada. Born and bred in Idaho, Ryan's family roots go deeply into the past in Mackay where our Empire Mine is located."
Drilling Update
Of the planned 12,200 metre drill programme scheduled for completion in 2018, Phoenix has completed a total of 7,116 metres of drilling at Empire. To date this consists of 4,840 metres of reverse circulation (RC) drilling, 1,573 metres of HQ core drilling, and 703 metres of PQ core drilling. Drill samples are being delivered to the ALS Global laboratory in Nevada for assay with a turnaround time of approximately six weeks. The drill hole results received to date from core holes KXD18-1 through KXD18-6 and RC holes KX18-1 through KX18-34 are shown below.
Hole | Intersection Metres | % | ppm | g/t |
| ||||
Number | From | To | Interval | TCu | Zn | W | Au | Ag | Comments |
KXD18-1 | 15.8 | 30.8 | 14.9 | 0.24 | 0.02 | 87.78 | 0.1 | 5.40 | infill |
and | 41.5 | 46.0 | 4.6 | 0.39 | 0.03 | 45.00 | 0.0 | 10.50 |
|
and | 85.0 | 91.1 | 6.1 | 0.80 | 0.17 | 192.50 | 0.5 | 18.23 |
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including | 86.6 | 89.6 | 3.0 | 1.03 | 0.15 | 195.00 | 0.6 | 25.45 | infill/stepout |
*KXD18-02 | 0.0 | 68.0 | 68.0 | 0.57 | 0.09 | 0.01 | 0.22 | 12.10 | infill |
including | 0.0 | 29.0 | 29.0 | 0.75 | 0.06 | 0.01 | 0.16 | 13.00 |
|
including | 1.5 | 3.0 | 1.5 | 0.97 | 0.24 | 0.00 | 0.07 | 15.50 |
|
including | 6.1 | 6.7 | 0.6 | 1.68 | 0.03 | 0.01 | 0.43 | 14.10 |
|
including | 9.0 | 10.5 | 1.5 | 1.20 | 0.08 | 0.02 | 0.56 | 25.50 |
|
including | 12.0 | 13.5 | 1.5 | 1.25 | 0.03 | 0.03 | 0.14 | 35.40 |
|
including | 38.0 | 68.0 | 30.0 | 0.55 | 0.31 | 0.01 | 0.32 | 13.80 |
|
including | 39.5 | 41.0 | 1.5 | 0.99 | 0.13 | 0.02 | 1.25 | 14.70 |
|
KXD18-3 | 29.0 | 34.4 | 5.5 | 0.72 | 0.06 | 185.00 | 2.40 | 0.03 | infill |
including | 29.0 | 30.5 | 1.5 | 1.21 | 0.07 | 47.50 | 0.80 | 0.02 |
|
KXD18-4 | 23.5 | 30.3 | 6.9 | 0.70 | 0.16 | 70.00 | 0.10 | 39.16 | infill |
Including | 23.5 | 25.9 | 2.4 | 1.00 | 0.08 | 100.00 | 0.10 | 32.25 |
|
and | 64.0 | 65.5 | 1.5 | 0.76 | 0.48 | 220.00 | 0.00 | 6.50 |
|
and | 72.2 | 78.2 | 5.9 | 1.11 | 0.29 | 443.33 | 0.10 | 17.33 |
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including | 73.8 | 76.5 | 2.7 | 1.98 | 0.15 | 400.00 | 0.20 | 22.60 |
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and | 84.0 | 93.0 | 9.0 | 0.23 | 2.05 | 80.00 | 0.30 | 5.30 |
|
KXD18-5 | 0.0 | 7.0 | 7.0 | 1.21 | 0.02 | 12.00 | 0.60 | 35.50 | infill |
and | 12.8 | 16.2 | 3.4 | 1.71 | 0.22 | 830.00 | 1.20 | 49.30 |
|
and | 16.6 | 22.1 | 5.5 | 0.80 | 0.28 | 55.00 | 0.30 | 24.70 |
|
KXD18-6 | 0.0 | 17.8 | 17.8 | 1.19 | 0.12 | 28.33 | 0.00 | 11.82 | infill |
including | 0.0 | 12.2 | 12.2 | 1.48 | 0.14 | 36.88 | 0.00 | 15.15 |
|
including | 7.6 | 10.7 | 3.0 | 3.02 | 0.17 | 25.00 | 0.00 | 25.30 |
|
and | 23.8 | 25.3 | 1.5 | 0.58 | 0.06 | 20.00 | 0.00 | 7.60 |
|
KX18-1 | 9.1 | 13.7 | 4.6 | 0.35 | 0.08 | 63.33 | 0.00 | 10.63 | stepout |
KX18-3 | 15.2 | 16.8 | 1.5 | 0.33 | 0.04 | 320.00 | 0.00 | 7.90 | stepout |
KX18-7 | 27.4 | 29.0 | 1.5 | 0.31 | 0.04 | 50.00 | 1.40 | 5.50 | infill/stepout |
KX18-8 | 22.9 | 29.0 | 6.1 | 1.09 | 0.31 | 162.50 | 1.30 | 19.18 | infill |
KX18-10 | 13.7 | 15.2 | 1.5 | 0.30 | 0.33 | 30.00 | 0.10 | 14.20 | stepout |
and | 18.3 | 22.9 | 4.6 | 0.26 | 0.26 | 120.00 | 0.10 | 11.85 |
|
KX18-12 | 13.7 | 15.2 | 1.5 | 0.53 | 0.10 | 60.00 | 0.00 | 20.50 | stepout |
KX18-13 | 10.7 | 12.2 | 1.5 | 0.32 | 0.12 | 230.00 | 0.10 | 9.60 | stepout |
and | 25.9 | 27.4 | 1.5 | 0.84 | 0.10 | 80.00 | 0.10 | 19.10 |
|
and | 53.3 | 56.4 | 3.0 | 0.46 | 0.08 | 115.00 | 0.00 | 8.20 |
|
KX18-14 | 0.0 | 9.1 | 9.1 | 0.49 | 0.18 | 115.00 | 0.50 | 13.60 | infill |
including | 0.0 | 1.5 | 1.5 | 0.81 | 0.32 | 190.00 | 0.40 | 28.40 |
|
KX18-16 | 29.0 | 30.5 | 1.5 | 0.35 | 0.03 | 60.00 | 0.00 | 3.60 | stepout |
and | 45.7 | 61.0 | 15.2 | 0.42 | 0.05 | 21.00 | 0.10 | 8.17 |
|
including | 57.9 | 61.0 | 3.0 | 0.66 | 0.04 | 35.00 | 0.20 | 18.80 |
|
and | 68.6 | 76.2 | 7.6 | 0.22 | 0.02 | 13.00 | 0.00 | 4.08 |
|
KX18-18 | 25.9 | 27.4 | 1.5 | 0.59 | 0.43 | 230.00 | 0.00 | 22.30 | stepout |
KX18-19 | 24.4 | 25.9 | 1.5 | 0.37 | 0.01 | 50.00 | 0.00 | 2.90 | stepout |
KX18-26 | 9.1 | 10.7 | 1.5 | 0.25 | 0.02 | 20.00 | 0.00 | 8.80 | infill |
and | 38.1 | 41.1 | 3.0 | 0.63 | 0.90 | 440.00 | 0.10 | 93.80 |
|
KX18-27 | 67.1 | 68.6 | 1.5 | 0.27 | 0.05 | 150.00 | 0.20 | 12.60 | infill |
KX18-28 | 0.0 | 6.1 | 6.1 | 0.94 | 0.13 | 25.00 | 0.10 | 12.53 | infill |
including | 0.0 | 1.5 | 1.5 | 1.11 | 0.16 | 20.00 | 0.10 | 7.40 |
|
including | 3.0 | 4.6 | 1.5 | 1.02 | 0.16 | 30.00 | 0.10 | 21.10 |
|
KX18-31 | 39.6 | 57.9 | 18.3 | 0.68 | 0.15 | 20.00 | 0.20 | 6.83 | infill |
including | 39.6 | 45.7 | 6.1 | 1.67 | 0.34 | 12.50 | 0.20 | 5.22 |
|
including | 42.7 | 44.2 | 1.5 | 3.41 | 0.60 | 50.00 | 1.50 | 40.80 |
|
and | 65.5 | 68.6 | 3.0 | 0.66 | 0.11 | 7.50 | 0.10 | 6.50 |
|
KX18-33 | 18.3 | 30.5 | 12.2 | 0.95 | 0.08 | 163.75 | 0.10 | 11.29 | stepout |
including | 18.3 | 21.3 | 3.0 | 2.05 | 0.08 | 355.00 | 0.10 | 16.20 |
|
and | 57.9 | 64.0 | 6.1 | 0.68 | 0.12 | 10.00 | 0.10 | 9.03 |
|
including | 59.4 | 61.0 | 1.5 | 1.11 | 0.09 | 10.00 | 0.30 | 7.30 |
|
and | 140.2 | 141.7 | 1.5 | 0.44 | 0.03 | 10.00 | 0.10 | 3.50 |
|
KX18-34 | 0.0 | 3.0 | 3.0 | 0.43 | 0.20 | 60.00 | 0.30 | 14.40 | stepout |
and | 47.2 | 53.3 | 6.1 | 1.25 | 0.24 | 30.00 | 0.50 | 13.90 |
|
including | 47.2 | 51.8 | 4.6 | 1.53 | 0.29 | 33.33 | 0.60 | 16.77 |
|
and | 68.6 | 70.1 | 1.5 | 1.82 | 0.33 | 30.00 | 0.40 | 44.08 |
|
including | 70.1 | 73.2 | 3.0 | 2.85 | 0.48 | 25.00 | 0.60 | 70.20 |
|
and | 79.2 | 86.9 | 7.6 | 0.58 | 0.07 | 28.00 | 0.40 | 6.08 |
|
including | 85.3 | 86.9 | 1.5 | 1.25 | 0.07 | 50.00 | 0.40 | 11.20 |
|
and | 112.8 | 126.5 | 13.7 | 0.64 | 0.09 | 27.78 | 0.10 | 8.60 |
|
including | 112.8 | 114.3 | 1.5 | 1.26 | 0.09 | 10.00 | 0.10 | 12.70 |
|
including | 115.8 | 117.3 | 1.5 | 1.21 | 0.05 | 20.00 | 0.10 | 13.60 |
|
including | 125.0 | 126.5 | 1.5 | 1.04 | 0.03 | 10.00 | 0.00 | 7.80 |
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and | 143.3 | 170.7 | 27.4 | 0.19 | 0.05 | 15.00 | 0.10 | 3.16 |
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* Drill hole data presented in prior press release.
There are currently samples from 10 RC holes and 6 diamond drill holes along with 298 surface channel samples at the ALS assay laboratory in Nevada awaiting assay results. Core from 12 diamond drill holes is being logged and cut at the core shed in Mackay. Half the core is sent for assay, half is stored in the core shed.
Appointment of Ryan McDermott as Chief Operating Officer
The Company is pleased to announce the appointment of Ryan McDermott to the position of Chief Operating Officer of Phoenix, a non-board position, effective from 1st September 2018. Mr McDermott currently serves as Chief Executive Officer and General Manager of Konnex Resources Inc, Phoenix's 80% owned subsidiary company developing the Empire Mine in Mackay, Idaho, having joined the Company in March 2017.
Mr McDermott's duties will now include the management of Phoenix's 100% owned cobalt exploration company, Borah Resources Inc, currently exploring for cobalt and copper at the Bighorn and Redcastle projects in the Idaho Cobalt Belt. He will also be involved in evaluating the Company's 80% owned Gordon Lake Project in the Northwest Territories of Canada.
Born and bred in Idaho, Mr McDermott graduated from Idaho State University with a BSc. in Geology and has over 25 years of experience in the mining sector. He has held various senior positions in the mining industry in the USA and internationally in exploration, mine development and operations in base and precious metals projects. He was recently responsible for bringing a new mine into production in Idaho for GHRMC. He brings considerable skills to the Company and was responsible for overseeing the Empire Mine PEA and expanding the Empire property footprint, as well as designing and executing the 2018 drilling programme which is highlighted above.
Qualified Person
Information in this announcement has been reviewed by Roger Turner ACSM., MSc., MIMMM., CEng., 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.
For further information please visit www.pgmining.com or contact:
Phoenix Global Mining Ltd | Dennis Thomas / Richard Wilkins | Tel: +44 7827 290 849 (Dennis) / +44 7590 216 657 (Richard)
|
SP Angel (Nominated Adviser and Joint Broker)
| Lindsay Mair / Caroline Rowe | Tel: +44 20 3470 0470 |
Brandon Hill Capital (Joint Broker) | Jonathan Evans / Oliver Stansfield
| Tel: +44 20 3463 5000 |
Blytheweigh (Financial PR) | Tim Blythe / Camilla Horsfall / Megan Ray | Tel: +44 20 7138 3204 |
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.
PGM's flagship project is a brownfield, past producing, copper, gold, silver, zinc and tungsten underground mine, the Empire Mine near Mackay in Idaho. PGM acquired an 80% interest in the property in 2015. Based on a total of 315 drill holes a NI 43-101 compliant oxide resource was completed in late 2017. A PEA (preliminary economic assessment) for an open pit heap leach solvent extraction and electrowinning (SX-EW) mine was completed in April 2018 with a design capacity of 8,000 tonnes of copper cathode a year. In June 2018 a campaign consisting of 12,200 metres of reverse circulation (RC) and diamond core drilling was started. This programme is designed to upgrade and increase the oxide reserves, provide samples for ongoing metallurgical testwork, geotechnical and hydrological studies and condemnation drilling for the heap leach pad site, waste dump and plant site. At the same time the consultants were appointed to complete a NI 43-101 compliant BFS (bankable feasibility study). The lead consultant is RPM Global who are supported by Samuel Engineering, both based in Denver, Colorado. Cascade Earth Sciences of Pocatello, Idaho have been working on environmental and permitting issues since 2016 and form part of the BFS team. Golder Associates are designing the heap leach pad and ponds, and Call and Nicholas are carrying out the open pit slope stability studies.
At Empire, 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. In addition, PGM has increased the claim area from 813 acres at the time of its acquisition to 1,837 acres, mainly to the northwest, and in so doing has increased the potential for additional oxide and sulphide resources by a total strike length of approximately 1,500 metres towards another brownfield mine, the Horseshoe Mine, which is now within the property boundary.
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 First Cobalt. Exploration will continue during 2018 to identify drilling targets. Fieldwork is already underway.
The Company has also acquired an exclusive option to explore and develop the Gordon Lake Project, in the Northwest Territories, Canada, which is 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 low risk, mining-friendly jurisdictions with excellent infrastructure, Phoenix is looking to fulfil its ambitions to become a mid-tier base metal, precious metal and cobalt production company, offering exposure to three high value and high demand metals with compelling demand/supply fundamentals.
More details on the Company, its assets and its objectives can be found on PGM's website at https://www.pgmining.com/