Last checked at 2 Oct 2018 07:00
Phoenix Global Mining Ltd
Ticker LSE AIM:PGM , OTCQX:PGMLF / Sector: Mining
2 October 2018
Phoenix Global Mining Ltd ('Phoenix' or the 'Company')
Further assay results - 2018 Empire channel sampling programme results show high-grade copper, gold and silver on surface in exposed outcroppings and road cuts
Phoenix Global Mining Ltd (AIM:PGM, OTCQX:PGMLF), the AIM quoted, North American-focused base and precious metals exploration and development company, is pleased to announce the results from the Company's ongoing channel sampling programme at the Empire Copper Mine in Idaho, USA (the 'Empire Mine'). The results of the 2018 drilling programme, to date, were published on 4th and 18th September and can be found on the Company's website at www.pgmining.com
Channel Sample Highlights
· Significant copper grades exhibited in outcroppings and road cuts. Channel samples will be tied to near surface drill hole intercepts and included in the next Empire resource update:
o CH18-02 7.6 metres ("m") of 5.08% copper equivalent on surface
o CH18-09 24.4 m of 0.86% copper equivalent on surface
including 11.0 m of 1.21% copper equivalent on surface
o CH18-12 21.3 m of 0.73% copper equivalent on surface
o CH18-16 6.1 m of 6.34% copper equivalent on surface,
including 1.5 m of 9.26% copper equivalent on surface
o CH18-21 21.3 m of 4.19% copper equivalent on surface,
including 3.0 m of 6.70% copper equivalent on surface
and 1.5 m of 10.78% copper equivalent on surface
o CH18-22 32.0 m of 2.19% copper equivalent on surface,
Including 15.2 m of 2.89% copper equivalent on surface
And 1.5 m of 10.33% copper equivalent on surface
o CH18-23 9.1 m of 1.42% copper equivalent on surface
· Elevated gold and silver values are associated with the copper intersections. Grades of up to 9.45% copper, 7.63 grams per tonne ("g/t") gold, 100 g/t silver.
Dennis Thomas, Chief Executive Officer, said, "It is our pleasure to present the assay results from the initial phase of the Empire surface channel sampling programme. The copper skarn comprises a significant portion of the exposed rock at the Empire Mine so these surface results were expected. Moreover, we are pleased with the overall grades that we are seeing at the surface in the latest assay results. The extended intervals of 21.3 metres of 2.73% copper in CH18-21 and 32.0 metres of 1.60% copper in CH18-22, along with the extremely high-grade 1.5 metre intervals of 8.97% copper (CH18-21) and 9.45% copper (CH18-22) are just a few examples of the exceptional grades exhibited at the surface. The copper grades in the channel samples are consistent with near surface drilling results around the property. We have also reported material gold and silver grades in the channel sample results.
"We would emphasise the potential economic importance of the mineralised skarn exposed at the surface in terms of the positive effect to open-pit pre-stripping and the early introduction of mineralised material to the processing circuit. We are now more encouraged than ever to see the grades associated with the surface outcroppings and the consistency of these grades compared with near surface drill hole intercepts elsewhere on the property.
"Thus far, the infill drilling programme and channel sampling programme results are encouraging and will be used to update the resource model, in which the current average grade of the "measured and indicated" resource is 0.52% copper. Our hope is that continued results, similar to those reported here and previously, both drilling and channel sampling, will have a positive effect on the overall grade and tonnage, which will materially enhance the economics of the project. We look forward to keeping the market updated on our progress."
Channel Sampling
23 channel samples composed of 298 1.5 metre samples were collected from outcroppings and road cuts on the Empire property and inside the perimeter boundaries of the "Preliminary Economic Analysis" open pit design. The channels ranged from 6.1 metres to 51.8 metres in length with the individual samples connected end-to-end. Only those outcroppings and road cuts orientated perpendicular to the dip of the skarn body were sampled to mimic the interception of a drill hole oriented perpendicular to the dip of the skarn, providing a better indication of true thickness. Of the 23 channels, 14 contained composite intervals greater than 0.20% copper, and 19 of the 23 contained composite intervals of greater than 0.20% copper equivalent. Additional channel samples will be collected as new road cuts and outcroppings of skarn present themselves.
The samples comprising each channel were composited and are presented in the following table. Copper equivalent grades ("CuEquiv") were calculated based on metal prices as follows - copper $6,000/tonne, zinc $2,325/tonne, gold $1,200/oz and silver $14.00/oz.
All channel samples are within the designed pit.
Channel | Composite | % | g/t | % | ||
Number | Length (metres) | TCu | Zn | Au | Ag | CuEquiv |
CH18-01 | 3.0 | 0.04 | 0.05 | 0.42 | 1.80 | 0.34 |
CH18-02 | 7.6 | 0.12 | 0.06 | 7.63 | 3.42 | 5.08 |
and | 3.0 | 0.23 | 0.03 | 0.10 | 5.65 | 0.35 |
CH18-03 | 9.1 | 0.11 | 0.08 | 0.28 | 4.75 | 0.36 |
CH18-04 | 21.3 | 0.34 | 0.09 | 0.05 | 10.59 | 0.49 |
CH18-05 | 10.7 | 0.57 | 0.24 | 0.07 | 18.86 | 0.85 |
CH18-06 | 13.7 | 0.34 | 0.11 | 0.01 | 9.98 | 0.46 |
CH18-07 | 4.6 | 0.56 | 0.09 | 1.55 | 28.57 | 1.81 |
CH18-08 | 7.6 | 0.53 | 0.07 | 1.26 | 35.64 | 1.63 |
CH18-09 | 24.4 | 0.68 | 0.12 | 0.16 | 4.61 | 0.86 |
including | 11 | 1.03 | 0.16 | 0.15 | 3.33 | 1.21 |
including | 1.5 | 2.72 | 0.02 | 1.53 | 25.60 | 3.90 |
CH18-10 | 3.0 | 0.06 | 0.03 | 0.04 | 5.40 | 0.14 |
CH18-11 | 1.5 | 0.03 | 0.02 | 0.01 | 1.30 | 0.05 |
CH18-12 | 21.3 | 0.51 | 0.09 | 0.19 | 7.88 | 0.73 |
including | 7.6 | 1.08 | 0.07 | 0.09 | 4.96 | 1.20 |
CH18-13 | 3.0 | 0.02 | 0.74 | 0.02 | 1.30 | 0.33 |
CH18-14 | 3.0 | 0.12 | 0.14 | 0.03 | 2.40 | 0.21 |
CH18-15 | 1.5 | 0.09 | 0.01 | 0.02 | 2.60 | 0.13 |
CH18-16 | 6.1 | 5.39 | 0.12 | 0.29 | 95.43 | 6.34 |
including | 1.5 | 8.13 | 0.16 | 0.49 | 100.00 | 9.26 |
CH18-17 | 12.2 | 1.05 | 0.10 | 0.13 | 13.74 | 1.28 |
CH18-18 | 4.6 | 0.20 | 0.11 | 0.06 | 8.53 | 0.35 |
CH18-19 | 4.6 | 0.01 | 0.01 | 0.01 | 4.80 | 0.06 |
CH18-20 | 6.1 | 0.45 | 0.01 | 0.26 | 7.00 | 0.67 |
CH18-21 | 21.3 | 2.73 | 0.20 | 1.35 | 68.44 | 4.19 |
including | 13.7 | 3.45 | 0.20 | 0.57 | 76.18 | 4.47 |
including | 3.0 | 5.53 | 0.19 | 0.54 | 100.00 | 6.70 |
and | 1.5 | 8.97 | 0.26 | 1.49 | 100.00 | 10.78 |
CH18-22 | 32.0 | 1.60 | 0.12 | 0.41 | 37.20 | 2.19 |
including | 15.2 | 1.96 | 0.10 | 0.67 | 61.62 | 2.89 |
and | 1.5 | 9.45 | 0.17 | 0.56 | 60.30 | 10.33 |
CH18-23 | 9.1 | 0.85 | 0.07 | 0.30 | 46.30 | 1.42 |
including | 3.0 | 1.74 | 0.15 | 0.53 | 100.00 | 2.89 |
Other Results Pending Analysis
There are currently five RC holes and 14 diamond drill holes awaiting assay results, as well as 25 surface channel samples from the new Red Star trend at Empire. Red Star is 330 metres north-west of the northern end of the designed oxide open pit and is a 20 metre-wide surface outcrop across the structure and is a mix of copper oxides and sulphide. These results will be announced following the receipt of assay certificates and QA/QC sign-off. The Company also plans additional drilling and surface channel sampling over the next several months. Assay results from this late 2018 work are anticipated to be available in October, November, and December.
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, OTCQX:PGMLF) 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 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 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 Bankable Feasibility Study ("BFS"). 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 www.pgmining.com