Update

RNS Number : 9406M

Phoenix Global Mining Ltd

14 January 2019

 

14 January 2019

Phoenix Global Mining Ltd

("Phoenix" or the "Company")

Update

Phoenix Global Mining Ltd (AIM: PGM; OTCQX: PGMLF), the North American-focused base and precious metals exploration and development company notes the recent movement in the Company's share price.

As announced on 24 December 2018, the Company completed a subscription to raise £358,099 at 28 pence per share.  Directors and senior management all participated in this subscription. Despite substantial interest, aided by its recent admission to trading on the New York OTCQX Market, the Company confirms that a number of potential strategic and other qualifying institutional investors from the US were not in a position to close prior to the 2018 year end. The Company confirms that it remains in positive discussions with such investors with a view to completing a further subscription during January 2019, as foreseen at the time of the December 2018 close.

The Company is not aware of any material change in its business or affairs that has not been publicly disclosed.

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.

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 a NI 43-101 compliant oxide resource was completed in late 2017. A PEA (preliminary economic assessment) 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 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"). 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, Phoenix 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.  

In 2018 the Company completed 8,604 metres of drilling at Empire. The analytical and geological data from this 93-hole drilling program and 106 channel surface sampling programme is currently being evaluated and modelled in preparation for a Q1 2019 updated resource calculation as part of the ongoing Bankable Feasibility Study for the initial open pit mine.  Phoenix staff and consultants are systematically assessing and evaluating the recent data and incorporating this data into the existing database which includes all of the information used in the November 2017 resource estimate and in the April 2018 Preliminary Economic Assessment.

As reported throughout late 2018, mineralized drill hole intercepts were prevalent in multiple directions outside of the previously modelled open pit mine, particularly to the north in the newly discovered Red Star area.  The 2018 drilling programme obtained numerous high grade interceptions, including grades of 12.05% copper, 20% lead, 5.83% zinc, 2.52g/t gold and 580 g/t silver, all of which will be included in the Q1 2019 resource estimate. Known mineralisation now covers a strike length of 3.5 kilometres within the Company's claim block. The April 2018 pit design covered 1 kilometre of this. The Company continues to believe that the Empire Mine Project, including the historically mined high grade underground orebody, represents a major mineralised system and will continue to explore the underground sulphide mineralisation potential of the Empire Mine in 2019, whilst looking to consolidate land holdings adjacent to the mine.

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.

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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