Last checked at 12 Sep 2017 07:00
Phoenix Global Mining Ltd / Ticker: PGM / Sector: Mining
12 September 2017
Phoenix Global Mining Ltd ('Phoenix' or the 'Company')
Empire Copper Mine Update
Phoenix Global Mining Ltd (AIM:PGM), the AIM quoted, US-focused copper exploration and development company, is pleased to provide an update regarding its activities at the Empire Copper Mine in Idaho, USA (the 'Empire Mine').
Highlights
· 28 drill hole drilling programme now completed at the AP Pit oxide resource
· Assay results for 14 holes received to date; all samples have now been sent to the assay lab; further results expected in forthcoming weeks
· Revised JORC resource on target for Q4 2017
· Preliminary Feasibility Study (PFS) consultants now selected and aiming to complete studies by early Q2 2018
· A mining contractor has been appointed to open several of the old working portals (tunnel entrances) and to refurbish and make safe in order to carry out a systematic evaluation of the deeper sulphide resources below the AP Pit
Dennis Thomas, the Company's CEO, said, "The Empire Mine continues to advance at pace. Our initial drilling programme has been completed and the assay results from 14 of the total 28 holes confirm the robustness of the oxide deposit copper grades. The assay results from the remaining 14 holes will be received in the next few weeks at which time the focus will be to update the oxide ore resource estimation for the AP open pit. We continue to advance the PFS which is focused on proving the commercial viability of mining these oxides and recovering copper cathode by heap leaching, solvent extraction and electrowinning (SX-EW). We have now appointed a strong professional team of consultants to carry out the required studies with Q2 2018 as the target date for completion of the PFS.
"Whilst the oxide resource offers the near-term development opportunity, the deeper sulphide resource is of potentially significant value to us given the historic grades of up to 11.4% copper plus gold, silver and tungsten that have been recovered. Accordingly, I am pleased to report that we have appointed an underground mining contractor to open the portals (tunnel entrances) of the old workings on various levels and, once refurbished, ventilated and made safe, to commence a programme to assess the deeper sulphide potential beneath the AP pit oxides. We look forward to updating shareholders on progress across our exploration programme in due course."
Drilling Programme and Results to date
The Company's drilling contractor, AK Drilling Inc. has completed the initial 28 drill hole programme. This included 21 reverse circulation drill holes (1,595 metres) and 7 PQ and HQ diamond drill holes (537 metres). Significant assay results from the 14 holes for which assays have been received are summarised in Table 1.
Results for KX17-2 to 4 were previously announced by the Company in the RNS dated 31 July 2017. Therefore, the results from KX17-6 to KXd17-1 are now reported.
Table 1: Drill hole assay results received to-date
Hole | Intersection Metres | % | gms / tonne | Cu Equiv | ||||||||||||||||||||||||||||||||
Number | From | To | Intercept | Total Cu | Zn | Ag | Au | % ** | ||||||||||||||||||||||||||||
KX17-2* | 0.0 | 29.0 | 29.0 | 0.46 | 7.72 | 0.17 | 0.63 | |||||||||||||||||||||||||||||
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 | 1.60 | |||||||||||||||||||||||||||||
56.4 | 61.0 | 4.6 | 1.65 | 2.30 | 3.37 | 0.04 | 2.73 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
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 | 1.35 | ||||||||||||||||||||||||||||
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 | 1.26 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
KX17-12 | 24.4 | 32.0 | 7.6 | 0.60 | 17.84 | 0.09 | 0.81 | |||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
* As announced by the Company in the RNS dated 31 July 2017 ** Copper equivalent grade = value of contained Cu, Zn, Ag and Au expressed as Cu grade
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Metal prices used (Sept 6, 2017)
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JORC Resource
The excellent copper grades received from these holes will enhance the JORC resources, which will be updated on receipt of assays from all 28 holes. 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. There would be no mining costs and the SX-EW heap leach would be followed by a gold/silver heap leach operation.
A key component of the PFS programme is the updated JORC resource which is on track to be issued in Q4 2017.
PFS Programme
The Company has made a number of key appointments to manage the PFS currently underway, with completion of the PFS targeted for early Q2 2018.
With a wealth of experience in designing and commissioning copper SX-EW plants in the US and around the world, M3 Engineering & Technology Corp of Tucson Arizona ('M3') have been appointed as lead consultant. Alongside M3, Hard Rock Consulting Inc of Lakewood, Colorado have been appointed to lead the Reserves & Mining studies, Minerals Technology LLC of Tucson, Arizona will undertake the Metallurgical test work, and Cascade Earth Sciences of Pocatello, Idaho will complete the environmental and permitting studies.
The PFS work programme will consist 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
Other activities
As previously announced the Company is seeking to commence exploration work on the deeper sulphide resources, where grades of up to 11.4% copper were recorded during the underground mining operations.
The Company has now appointed a mining contractor to reopen the existing portals to allow access to the underground workings for the purposes of evaluating and sampling the sulphide ore body below the oxide resource. The condition of the old workings, once into solid rock, will dictate the extent of the underground sampling programme.
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 / Hugo de Salis | 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.