Phoenix Copper. Regulatory News (PXC)

Phoenix Global Mining Ltd / Ticker: AIM:PGM / Sector: Mining

7 May 2019

Phoenix Global Mining Ltd ('Phoenix' or the 'Company')

 Substantial increase in copper, zinc, gold and silver resource

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 an updated Resource for its Empire Copper Mine oxide open pit in Idaho, USA. The results of the Empire Mine work programme, to date, were published throughout 2017 and 2018, and can be found on the Company's website at www.pgmining.com.

Highlights

Based on the work completed over the past 12 months, which includes 8,604 metres of drilling in 93 holes, the Company has upgraded the resources at the Empire Mine. The Measured & Indicated open pit resource at a 0.184% copper cut-off grade, compared to the April 2018 PEA resource at the same cut-off grade, has increased as follows: -

· Measured and Indicated resource - 15.17 million tonnes (April 2018: 10.42 million tonnes) - an increase of 45.6%

· Copper - 73,872 tonnes (April 2018: 53,755 tonnes) - an increase of 37.4%

· Zinc - 29,813 tonnes (April 2018: 14,311 tonnes) - an increase of 108.3%

· Gold - 139,000 ounces (April 2018: 79,000 ounces) - an increase of 75.9%

· Silver - 6,038,000 ounces (April 2018: 3,560,000 ounces) - an increase of 69.6%

The Company will fast track into production a low capital cost open pit mine with a planned annual production rate of 8,000 tonnes of copper and zinc at an average head grade of 0.61% copper.

The Company also reports a maiden inferred sulphide resource at the recently discovered Red Star Zone averaging 173.4 g/tonne (5.6 ozs) silver, 3.85% lead, 0.33% copper, 0.92% zinc and 0.85 g/tonne gold.

Dennis Thomas, the Company's CEO, said, "Our goal for the 2018 drilling programme was to increase Measured and Indicated resources by way of infill drilling to upgrade Inferred resources, and to increase overall resources by way of a step out drilling programme. We are excited to have accomplished both. The updated resource model at a 0.184% copper cut-off grade, as used in our April 2018 Preliminary Economic Assessment, has resulted in a 45.6% increase in Measured and Indicated tonnes with a 37.4% increase in contained copper, over 100% increase in contained zinc, 75.9% increase in contained gold and 69.6% in contained silver, with a combined metal value at current prices of approximately $800 million. We have an additional 4.3 million tonnes of Inferred resources, but only Measured and Indicated resources will be used for the purposes of completing a Bankable Feasibility Study.

"At a 0.325% cut-off grade, we now have over 10 million tonnes in the Measured and Indicated category at a copper grade of 0.61% copper. This will be the corner stone for the development of a low capital cost fast-track open pit oxide operation, to produce 8,000 tonnes of combined copper and zinc annually. Our team will look to optimise the project economics as we progress the Bankable Feasibility Study, as well as evaluating the potential for early cash flow from the gold and the silver.

"In addition to the Empire resource update, we can also report the results of our first sulphide inferred resource at the newly discovered Red Star Zone. Drilled for the first time in 2018, Red Star is showing an Inferred resource of 103,500 tonnes with an average grade of 173.4 g/tonne silver, 0.85 g/tonne gold, 0.33% copper, 3.85% lead, and 0.92% zinc. We look forward to the continued evaluation of the Red Star Zone, which has all the makings of a highly profitable mine."

Empire Mine - 2019 Resource

Following the completion of 8,604 metres of drilling on the Empire Mine in 2018 the resource has been updated and is summarised below at a 0.184% copper cut-off grade:

This resource estimation was completed by Hard Rock Consulting LLC (HRC) and utilised new data from the 2018 infill drilling programme to augment the previously estimated April 2018 resource.

The 2018 drilling programme comprised 8,604 metres in 93 holes and was designed to increase Measured and Indicated resources, provide data for refining the geological model, and to intercept grade outside of the previously drilled resource.

The HRC report entitled "Summary of Updated Resources for the Empire Mine Project" by HRC for Konnex Resources (80% Phoenix US subsidiary) will be available for review on the Company's website at www.pgmining.com. This report is in imperial units (1 US short ton = 2,000 lbs, 1 metric tonne = 2,204.6 lbs). HRC estimated the mineral resource for the Project based on drill hole data constrained by geologic boundaries with an Ordinary Krige ("OK") algorithm. Leapfrog Geo V4.4.2 ("Leapfrog") software was used to complete the resource estimate. HRC tabulated resources for various cut-off grades including 0.325% copper.

The mineral resources for the Project have been estimated in a manner consistent with the NI 43-101 Committee of Mineral Reserves International Reporting Standards ("CRIRSCO") of which both the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") and Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code") are members.

Red Star - Maiden Resource

Three drill holes plus surface sampling were completed on the newly discovered sulphide occurrence named Red Star. A maiden resource estimation has been completed by HRC showing:

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.

For further information please visit www.pgmining.com or contact:

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.

Phoenix's flagship project is a brownfield, past producing, copper, gold, silver, zinc and tungsten underground mine, the Empire Mine near Mackay in Idaho. Phoenix acquired an 80% interest in the property in 2015. Based on a total of 315 drill holes an oxide resource was completed in late 2017. A NI 43-101PEA (preliminary economic assessment) for an open pit heap leach solvent extraction and electrowinning ("SX-EW") mine was completed in April 2018. In June 2018 a campaign consisting of RC and diamond drilling was started. This programme was 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").

At Empire, it is estimated that only 1 to 2% 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, with the exception of the Red Star discovery "Inferred" resource, which remains open along strike and does not include the deeper, higher grade sulphides. In addition, Phoenix has increased the claim area from 813 acres at the time of its acquisition to 5,717 acres, mainly to the northwest and west, and in so doing has increased the potential for additional oxide and sulphide resources by a total strike length of approximately 2,500 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. Fieldwork, consisting of mapping and sampling and locating drill holes for the 2019 drilling programme, has been completed.

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