Strong results from drilling at the Empire Mine

RNS Number : 5893F

Phoenix Global Mining Ltd

30 October 2018

 

Phoenix Global Mining Ltd

Ticker LSE AIM: PGM, OTCQX: PGMLF / Sector: Mining

30 October 2018

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

Recent exploration work indicates a "district style" opportunity in the Empire Mine vicinity and continued strong results from the ongoing drilling at the Empire Mine

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 surface sampling and drilling programmes at the Empire Copper Project in Idaho, USA (the 'Empire Mine'). The results of the 2018 drilling programme, to date, were published in September and early October, and can be found on the Company's website at www.pgmining.com

Programme Highlights

·      The mineralisation within the recently expanded property footprint suggests a vast mineralised system following mapping, sampling and drilling programmes

·      Mineralisation now proven along a 3.5 kilometre ("km") strike within the expanded 1,837-acre property with the existing shallow oxide resource envelope along a 1km strike (which is the subject of an ongoing Bankable Feasibility Study)

·      The Company will now fast track further exploration work as well completing the Bankable Feasibility Study

·      Drilling in and around the Empire oxide resource envelope returned high grade copper and silver assays, and confirmation of the presence of sulphides

·      A map showing the area can be found on the Company website at www.pgmining.com News.

Dennis Thomas, Chief Executive Officer, said, "The results of the current programme suggest we have a district style opportunity along a 3.5km strike. We have only really begun to understand the scale of the opportunity following the mapping, sampling and drilling work outside the oxide resource envelope which has been the focus of our attention to-date. We have always believed that the area had strong potential. We needed to increase the property holdings to incorporate these potential areas which we have now done. We have increased the holding from 813 acres to 1,837 acres. In 2016 our consulting geologist, Nigel Maund of Arcturus Geoconsult, stated: -:

"The scale of the processes of skarn development, and associated hydrothermal deposits, is characteristic of a large 3.5km long by 40 metre ("m") to 150m wide skarn system flanking a poorly understood parent intrusive body measuring 3,500m in north to south extent and some 250m to 500m in width. Whatever geologic metier one uses, the footprint of the Empire deposit(s) is that of a major mineralised system. Indeed, to date, the Empire Mine remains largely unexplored as a result of the history of the exploration of this project which, since the closure of the underground high-grade copper mine, has largely focused on a shallow copper oxide resource and has, importantly, almost totally ignored the entire supergene and protore sulphide copper - gold - silver - zinc - tungsten resource.  Hence, work undertaken to date has exploited or explored in the vicinity of approximately 5% of the deposit's overall potential, or less".

"The newly discovered Red Star zone is located 330m north west along strike from the present northern limit of the Empire open pit resource envelope and appears to be a continuation of the Empire orebody's mineralisation trend which, in turn, continues on into the Horseshoe block of claims towards the old Horseshoe Mine approximately 1km along strike from Empire. The grades at Red Star gave assays of 1.09% copper equivalent across the exposed outcrop in an 18.3m channel. Three reverse circulation ("RC") drill holes have already been completed in the Red Star zone. Also, the Horseshoe exploration programme, which has included surface mapping and rock chip sampling, has resulted in assays of 3.83% copper, 580 g/t silver, 20% lead, 2.02 g/t gold and 790 g/t tungsten.

"We believe we can add considerable value by continuing exploration along the whole 3,500m zone within the property boundary and investigating the mineralised showing and old workings within this vast mineralised system.

"Finally, the drilling programme around the oxide resource envelope at Empire continues to return robust results which will enhance the new resource estimate scheduled for completion in January next year. High-grade copper and silver assays, consistent with results reported in the last two months, provides more evidence of a deeper-rooted, high-grade sulphide system.  Assay results for those holes are anticipated in November and early December. We look forward to keeping the market updated on our progress."

Channel and Rock Chip Sampling Highlights

       Red Star Channel                         18.3 m of 1.09% copper equivalent on surface    

including         4.6 m of 1.26% copper equivalent on surface

including         1.5 m of 1.82% copper equivalent on surface

Horseshoe Claims Rock Chip Samples

o  458503                          20% lead, 5.83% zinc, 580 g/t silver

o  458509                          9.19% copper, 89.8 g/t silver

o  458503                          5.08% lead, 1.26% zinc, 84.80 g/t silver

o  458513                          1.95% copper, 1.77% zinc, 367 g/t silver

o  458521                          2.93% copper, 39.40 g/t silver, 790 g/t tungsten

o  458523                          3.83% copper, 2.02 g/t gold, 141 g/t silver

Drilling Highlights - Empire Mine

            Stepout Oxide Copper Intercepts

o  Hole KX18-51:             1.5 m of 1.75% copper equivalent from 73 m depth    

o  Hole KXD18-18:            18.9 m of 2.14% copper equivalent from 41.8 m depth

including                     8.1 m of 3.86% copper equivalent from 47.2 m depth

including                     1.5 m of 5.91% copper equivalent from 52.3 m depth

o  Hole KXD18-18:            1.6 m of 2.65% copper equivalent from 52.8 m depth

Infill Oxide Copper Intercepts

o  Hole KXD18-16:            19.7 m of 1.79% copper equivalent from 18.9 m depth

including                     6.4 m of 2.52% copper equivalent from 30.5 m depth

o  Hole KXD18-18:            4.4 m of 1.70% copper equivalent from 6.2 m depth

Sulphide Copper Intercepts

o  Hole KX18-52:              4.6 m of 3.88% copper equivalent from 103.6 m depth

including                     1.5 m of 7.16% copper equivalent from 103.6 m depth

Red Star Channel Sampling

One continuous channel, comprised of 12 1.5m samples, were collected from the exposed outcropping at the Red Star zone. The results of these samples were composited as a single sample. Individual 1.5m samples ranged in grade from 0.15% copper to 1.69% copper and were all included in the grand composite.

The channel samples were composited and are presented in the following table. Copper equivalent grades ("CuEqu") 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.

The Red Star zone is 330m outside of the current resource area to the northwest on the edge of the Horseshoe claims Block.

Channel		%		g/t		%
Sample	Length Metres	Cu	Zn	Au	Ag	CuEqu
RED STAR	18.3	0.65	0.12	0.36	16.4	1.09
including	4.6	1.08	0.13	0.03	13.7	1.26
including	1.5	1.69	0.08	0.02	11.0	1.82

Horseshoe Exploration Rock Chip Samples

20 rock chip samples were collected as part of the initial exploration effort on the Horseshoe Claims Block from various outcroppings and exposures with at least some visually identifiable mineralisation. The sampling represents a small portion of the proposed exploration programme for the area in 2019.  A Notice of Intent ("NOI") is currently under review by the US Forest Service for drilling on the Horseshoe claims Block.

The Horseshoe Block is comprised of 944 acres of unpatented claims contiguous to the Empire property and staked by Phoenix in 2017 and 2018. The historic Horseshoe Mine is located approximately 1,000m north of Red Star and approximately 1,300m north-northwest of the Empire's North Pit. 

Horseshoe Rock Chip Samples
Sample	%			g/t
Number	Cu	Zn	Pb	Au	Ag	W
458503	0.02	5.83	20.00	0.18	580.00	5
458504	0.01	0.05	0.04	0.02	2.90	50
458505	0.00	0.17	2.01	0.03	15.20	5
458506	0.00	0.04	0.04	0.01	1.30	5
458507	0.01	0.11	2.71	0.02	25.70	10
458508	0.02	0.02	0.01	0.01	0.80	5
458509	9.19	0.43	0.02	0.50	89.80	30
458510	0.19	1.26	5.08	0.08	84.80	40
458511	1.67	0.61	0.03	0.01	7.80	120
458513	1.95	1.77	0.81	0.48	367.00	40
458514	0.20	1.01	0.01	0.01	2.50	5
458515	0.06	0.03	0.00	0.01	1.60	5
458516	0.13	0.38	0.22	0.05	12.60	5
458517	0.02	0.06	0.27	0.05	30.40	5
458518	0.15	1.11	2.33	0.01	31.70	20
458519	0.47	3.21	3.06	0.01	38.30	30
458520	0.03	0.23	0.06	0.01	2.40	5
458521	2.93	1.41	0.04	0.01	39.40	790
458523	3.83	1.55	0.02	2.02	141.00	220

Drilling Update

Phoenix has completed a total of 8,604m of drilling at Empire. To date this consists of 6,328m of reverse circulation (RC) drilling and 2276m of diamond drilling. Drill samples are being delivered to the ALS Global laboratory in Nevada for assay with a turnaround time of approximately six weeks. The drill hole results received to date from diamond drill holes KXD18-14A through to KXD18-19 and RC holes KX18-48 through to KX18-52 are shown below. The results from the Phoenix drilling programme in 2017 and the 2018 results for 47 RC holes and 13 diamond drill holes, published in September and October, can be found in the Phoenix web site at www.pgmining.com.

The copper equivalent grade ("Cu Equ") is calculated based on metal prices as follows - copper $6,000/tonne, zinc $2,325/tonne, gold $1,200/oz and silver $14.0/oz.

Drill Hole	Intersection Metres			%		g/t		%
Number	From	To	Interval	Cu	Zn	Au	Ag	CuEqu	Comments
KX18-48	39.6	41.1	1.5	0.29	0.04	0.56	18.6	0.85	Infill
KX18-51	73.2	74.7	1.5	0.74	1.93	0.06	25.8	1.75	Stepout
KX18-52	12.2	18.3	6.1	0.35	0.02	0.02	12.0	0.48	Infill
and	103.6	121.9	18.3	1.28	0.10	0.22	18.2	1.62	Stepout
including	103.6	108.2	4.6	2.95	0.20	0.70	44.0	3.88	Stepout
including	103.6	105.2	1.5	5.54	0.22	1.36	69.6	7.16	Stepout
KXD18-14A	25.6	26.8	1.2	0.30	0.03	0.09	26.0	0.59	Infill
and	35.7	37.2	1.5	0.25	0.40	0.01	6.4	0.47	Infill
and	112.5	113.4	0.9	0.26	0.04	0.01	10.9	0.37	Stepout
and	113.4	115.5	2.1	0.58	0.03	0.10	13.8	0.78	Stepout
KXD18-15	32.2	32.8	0.5	0.02	1.66	0.19	55.7	1.26	Infill
and	105.7	107.5	1.8	0.03	3.78	0.03	71.1	2.10	Infill
KXD18-16	0.0	3.7	3.7	0.56	0.19	0.03	3.6	0.69	Infill
and	18.9	38.6	19.7	1.10	1.10	0.23	12.0	1.79	Infill
including	24.7	27.4	2.7	2.50	0.65	0.20	11.4	2.98	Infill
including	30.5	36.9	6.4	1.49	1.30	0.53	17.9	2.52	Infill
and	117.0	119.8	2.8	0.54	0.14	0.09	14.2	0.78	Infill
and	143.9	145.4	1.5	0.46	0.05	0.04	9.3	0.58	Infill
KXD18-17	4.6	6.7	2.1	0.44	0.03	0.03	8.1	0.54	Infill
and	10.4	13.4	3.0	1.52	0.04	0.04	12.4	1.67	Infill
and	27.5	28.8	1.3	1.91	0.05	0.12	38.4	2.33	Infill
and	66.1	69.2	3.0	0.76	0.02	0.25	27.7	1.17	Stepout
KXD18-18	6.2	10.7	4.4	1.17	0.02	0.12	52.3	1.70	Infill
and	16.0	18.6	2.6	0.56	0.33	0.24	32.8	1.12	Infill
and	25.0	26.4	1.4	0.71	0.14	0.32	22.5	1.17	Infill
and	41.8	60.7	18.9	1.26	0.15	1.01	12.8	2.14	Stepout
including	47.2	55.3	8.1	2.26	0.21	1.98	14.1	3.86	Stepout
including	52.3	53.8	1.5	3.94	0.13	2.52	15.8	5.91	Stepout
KXD18-19	0.0	4.0	4.0	0.55	0.17	0.47	11.4	1.04	Infill
and	52.8	54.4	1.6	1.44	0.18	1.42	17.1	2.65	Stepout

Other Results Pending Analysis

There are currently 11 RC holes and seven diamond drill holes awaiting assay results which should be received in November and December and will be reported as soon as possible.

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: [phone] (Dennis) /  [phone] (Richard)
SP Angel (Nominated Adviser and Joint Broker)	Lindsay Mair / Caroline Rowe	Tel: [phone]
Brandon Hill Capital (Joint Broker)	Jonathan Evans / Oliver Stansfield	Tel: [phone]
Blytheweigh (Financial PR)	Tim Blythe / Camilla Horsfall / Megan Ray	Tel: [phone]

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

 

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