Last checked at 30 Jan 2018 07:00
Phoenix Global Mining Ltd / Ticker: AIM:PGM / Sector: Mining
30 January 2018
Phoenix Global Mining Ltd ('Phoenix' or the 'Company')
Exploration Update - Scout drilling at depth confirms skarn structure and polymetallic sulphide mineralisation
Phoenix Global Mining Ltd (AIM:PGM.L), the AIM quoted, US-focused copper and cobalt exploration and development company, is pleased to announce the analytical results from the scout drilling at its Empire Project in Custer County, Idaho.
Highlights
· Two scout drill holes intercepted polymetallic mineralisation below the oxide zone
· The holes confirm the skarn structure and presence of the predicted larger sulphide zone at depth
· Company will now progress with further exploration at depth in order to determine a targeted drilling programme
· Mineralised intercepts included:
o 4.6 m @ 2.45% Cu Equivalent
o 10.7 m @ 1.02% Cu Equivalent
Background
The Company completed two scout diamond drill holes totalling 534 metres in early December 2017 as a prelude to the underground sampling programme below the oxide zone at the Empire Mine. The primary purpose of the drilling was to determine geological structure beyond the old workings and specifically to locate the skarn structures which host the mineralisation.:
The Company is pleased to confirm that the two scout holes show that favourable primary sulphide ore-hosting geology is present below the proposed open pit oxide mine. Both holes intersected the skarn structures over much of their length. Much of the core is mineralised throughout its length, with higher grade polymetallic values being returned, including significant occurrences of tungsten values.
Mineralised intercepts underlying the Empire oxide resource:
o 4.6 m @ 2.45% Cu Equivalent
o 10.7 m @ 1.02% Cu Equivalent
Dennis Thomas, the Company's CEO, said, "I am very pleased to report that the results from our two deep exploration core holes have confirmed that favourable ore-hosting geology does exist below the current oxide resource and that higher grade polymetallic mineralization is present in the skarn structures at depth. Both of the core holes intersected mineralised skarn over much of their length. As we can see from the analytical data, both drill holes intersected numerous intervals of significant copper, gold, silver, zinc, lead, and tungsten, the latter being particularly exciting as it positively reinforces the predictions of the Empire system hosting significant values of tungsten at depth. We have gained valuable information regarding the polymetallic "roots" of the mineralised system at the Empire Mine.
"Historically, production from the mine was at a head-grade of between 6% and 8% copper and this new information enables us to target additional, higher-grade zones at greater depths and along strike. The recent acquisition of the Horseshoe Mine, adjoining the Empire Mine, has considerably increased the strike length of the mineralised structure under the Company's ownership, further adding to the exploration potential for both oxides and deeper sulphides. It also reinforces management's conviction that the underlying sulphide portion of the overall Empire/Horseshoe skarn orebody represents a considerable exploration tonnage target, drawing comparisons with skarn orebodies in very similar geologic association and settings such as Cantung in Alaska and Salau in France, in which economic values of tungsten occur at depth."
Drilling Programme
The Company's drilling contractor, AK Drilling Inc., completed the deep core hole program in early December 2017. HQ-diameter drill holes KXD17-8, KXD17-9 and KXD17-10 were angle drilled to depths of 314m, 67m, and 266m, respectively. Hole KXD17-9 encountered underground workings and was abandoned at 67m depth and re-collared as KXD17-10.
The following is a summary of the analytical results for drill holes KXD17-8 and KXD17-10.
Hole | Intersection Metres | % | gms / tonne | ||||||
Number | From | To | Interval | Cu Eq | T Cu | Zn | W | Ag | Au |
KXD17-10 | 73.2 | 83.9 | 10.7 | 1.02 | 0.42 | 0.74 | 0.03 | 12.6 | 0.01 |
including | 76.3 | 77.8 | 1.5 | 2.52 | 0.47 | 1.83 | 0.21 | 23.1 | 0.03 |
including | 82.4 | 83.9 | 1.5 | 1.78 | 1.19 | 0.71 | 0.01 | 24.0 | 0.02 |
and | 213.5 | 218.1 | 4.6 | 2.45 | 1.34 | 0.82 | 0.01 | 27.5 | 0.72 |
including | 213.5 | 215.0 | 1.5 | 3.93 | 2.53 | 0.13 | - | 26.9 | 1.83 |
Including | 215.0 | 216.6 | 1.6 | 2.13 | 0.74 | 2.20 | 0.03 | 16.1 | 0.08 |
and | 227.2 | 228.8 | 1.6 | 1.49 | 0.85 | 0.43 | 0.02 | 25.5 | 0.23 |
and | 260.8 | 262.3 | 1.5 | 0.69 | 0.53 | 0.14 | - | 3.9 | 0.10 |
KXD17-8 | 251.6 | 253.2 | 1.6 | 0.99 | 0.11 | 0.65 | 0.01 | 63.8 | 0.02 |
and | 259.3 | 260.8 | 1.5 | 1.52 | 0.04 | - | 0.18 | 83.1 | 0.01 |
It is noteworthy that results from the "by-product" metals impact positively on the value per tonne of "ore". The following table, used for the calculation of a "copper equivalent" grade shows that these "by products" have a significant value. The wolfram (tungsten) assays confirm that these skarns are tungsten rich and what has been intersected are probably plutonic "feeders" the source of which have yet to be discovered.
Hole | Intersection Metres | $/tonne contained metal | Cu % | Cu Eq | |||||||
Number | From | To | Interval | Cu | Zn | W | Ag | Au | Total | of value | % |
KXD17-10 | 73.2 | 83.9 | 10.7 | 29.43 | 25.38 | 9.54 | 6.97 | 0.43 | 71.76 | 41 | 1.02 |
including | 76.3 | 77.8 | 1.5 | 32.94 | 62.77 | 66.80 | 12.77 | 1.29 | 176.57 | 19 | 2.52 |
including | 82.4 | 83.9 | 1.5 | 83.40 | 24.35 | 3.18 | 13.27 | 0.86 | 125.06 | 67 | 1.78 |
and | 213.5 | 218.1 | 4.6 | 93.91 | 28.13 | 3.18 | 15.21 | 30.95 | 171.37 | 55 | 2.45 |
including | 213.5 | 215.0 | 1.5 | 177.30 | 4.46 | - | 14.88 | 78.66 | 275.30 | 64 | 3.93 |
Including | 215.0 | 216.6 | 1.6 | 51.86 | 75.46 | 9.54 | 8.90 | 3.44 | 149.20 | 35 | 2.13 |
and | 227.2 | 228.8 | 1.6 | 59.57 | 14.75 | 6.36 | 14.10 | 9.89 | 104.67 | 57 | 1.49 |
and | 260.8 | 262.3 | 1.5 | 37.14 | 4.80 | - | 2.16 | 4.30 | 48.40 | 77 | 0.69 |
KXD17-8 | 251.6 | 253.2 | 1.6 | 7.71 | 22.30 | 3.18 | 35.28 | 0.86 | 69.32 | 11 | 0.99 |
and | 259.3 | 260.8 | 1.5 | 2.80 | - | 57.26 | 45.95 | 0.43 | 106.44 | 3 | 1.52 |
Cu $/tonne | 7,008 | Cu $/lb | 3.18 | |
Zn $/tonne | 3,430 | Zn $/lb | 1.56 | |
W $/mtu (10Kg) | 318.00 | W $/lb | 14.43 | |
Ag $/tonne | 17.20 | Ag $/gm | 0.55 | |
Au $/tonne | 1,337 | Au $/gm | 42.98 |
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 US-focused, base and precious 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 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 by 2020. 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. 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. Early stage exploration is underway with drilling targeted to commence in 2018.
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 two high demand technology metals with compelling demand/supply fundamentals.