70% Increase in Empire Mine Land Position

RNS Number : 3434Y

Phoenix Global Mining Ltd

05 December 2017

 

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

5 December 2017

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

70% Increase in Empire Mine Land Position & Extension of Exploration Area

Phoenix Global Mining Ltd (AIM:PGM.L), the AIM quoted, US-focused copper and cobalt exploration and development company, is pleased to announce that it has expanded the land position of the Empire Copper Mine in Idaho, USA (the 'Empire Mine') with the addition of 33 unpatented mining claims in the Horseshoe Block immediately north of the existing property.  

Highlights:

o  33 mining claims (564 acres) acquired around the previously producing Horseshoe Mine, along strike and to the north of the Empire Mine orebody

o  The Empire Mine land position increases by 70% from 819 acres to a total land package of 1,383 contiguous acres

o  The new claims extend the exploration area to the north of the existing AP open pit resources by approximately 1.2 kilometres

o  Recorded copper, lead, zinc, silver and gold production from the Horseshoe Block as recently as 1979 with reported grades of 3.8% copper and 12% zinc

o  Claims staked and registered in the name of Phoenix's subsidiary Konnex Resources Inc., for a cost of US$6,995

Dennis Thomas, the Company's CEO, said, "The addition of the Horseshoe Block to the Empire Mine property package nearly doubles our previous footprint, is contiguous to our existing land position and extends the exploration area along strike to the north of the existing resources in the AP Pit by approximately 1.2 kilometres. The surface geology, as well as the historically recorded copper, lead, zinc, silver and gold production from the numerous workings in the Horseshoe Block, provide solid evidence that mineralisation is not limited to the immediate Empire Mine resource area.  The Horseshoe Block also provides us a greater footprint for future operations in the existing resource area for minimal cost."

To view a map showing the land position increase, visit the Company's website at: https://www.pgmining.com/overview.

Historical Production

Historical production from numerous adits and shafts in the Horseshoe Block, including the former Horseshoe Mine, was predominantly from skarnified limestone in contact with porphyritic intrusive bodies.  Mineralisation is documented as predominantly galena and chalcopyrite, with minor pyrrhotite.  Mining in the area dates back to the early 1900s and records indicate production as recently as 1979.

The majority of the recorded production from the Horseshoe area was from the former Horseshoe Mine.   The last ore shipment was reported to average 3.8% copper and 12% zinc.

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 [phone]
SP Angel (Nominated Advisor)	Lindsay Mair / Caroline Rowe	Tel: [phone]
Brandon Hill Capital (Broker)	Jonathan Evans / Oliver Stansfield/Robert Beenstock	Tel: [phone]
St Brides Partners (Financial PR)	Charlotte Page / Susie Geliher	Tel: [phone]

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 19.4 mt grading 0.47% copper ('Cu') for 90,547 t contained Cu. 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.  The Company also holds two prospective copper-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.

 

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