Phoenix Copper Share Discussion Threads

[milliecusto] 04/5/2020 20:01

My understanding is loan notes and not dilution, I'm sure the mine will be cash positive before the proposed loan notes requiring paying, I'm sure it's in one of the Rns, but for a mkt cap of 10m, the potential is staggering

[snowyflake] 04/5/2020 18:50

Hi Goldrush - hope all is well with you. The trouble with Phoenix is raising the finance for the mine without a great deal of dilution one way or another.

[snowyflake] 04/5/2020 18:50

oops - sorry.

[trad3m3] 04/5/2020 17:41

Thank you for the info I'll check the website, maybe it is the right time before the housing bubble burst this could sky rocket sooner, I think everyone will run for gold and silver and especially silver, and they have massive amounts of it here

[investorman33] 04/5/2020 17:29

Although the Empire (oxide layer)is the main news today, imo our main focus should be on Red Star :

'Red Star is located approximately 330 metres north-northwest of the Empire open pit resource area within the Empire patented claim boundary. This boundary is contiguous with the Horseshoe Block to the north and west. A map showing the area can be found on the Company website at www.phoenixcopperlimited.com in the "News" section. The Red Star Zone was discovered during field mapping and reconnaissance of the northern patented claim boundary and adjacent Horseshoe Block. Channel samples were collected from the Red Star outcrop itself and results reported by the Company in October 2018. Three reverse circulation drill holes targeting the area at depth were completed and assay results were published in December 2018. In May 2019, Hard Rock Consulting estimated a maiden inferred resource at Red Star of 103,000 tonnes grading 173.4 g/t silver, 0.85 g/t gold, and 3.85% lead, with minor copper and zinc'.

The 20 new drill holes (drilling started end April)are being put into a known vein system so should come up with an increase on the resource developed from the 3 initial holes, and pro rata that gives a resource of circa 800,000 tonnes and an in situ value (at current prices) of a little under USD 200m (about 60% gold/silver, balance is copper, lead zinc)…..and I'd guess Phoenix will add a few extra drill holes whilst the drillers are on site to further increase the resource in parallel with finalising the mine design and financing.

Phoenix are then looking to put this into production as early as possible (late 2021 ?) with a capital requirement of circa usd 30m - should be reasonably easy to raise - and a nice cash flow of say USD 10m+ pa which in turn will make it a lot easier to finance the bigger Empire mine.

I'm looking forward to progress reports on how drilling is going and the first assay results.....

[trad3m3] 04/5/2020 17:12

Was looking at "pow" but this one looks like a keeper, they are publishing some data at the end of this month?

[trad3m3] 04/5/2020 17:07

This looks like a nice dip to pick up, seems some of you already in a massive plus. The data looks sound

[investorman33] 04/5/2020 17:07

Worth revisiting the RNS today - in simple terms :

- The economic model (RNS 1 Aug 2019) had as revenues 68,538 tonnes of copper and 16,546 tonnes of zinc which at current metal values is USD 382m over the mine life (plus some low grade stockpiles).

- The RNS today has 'measured and indicated' 81,948 tonnes of copper, 37,685 tonnes of zinc 6,824,460 ozs of silver and 217,500 ounces of gold, so potential revenues (at current metal values) of around USD 419m (copper), USD 70m (zinc), USD 105m (silver) and USD 376m (gold) - a total of USD 970m metal in the ground value !

Now question is what the recovery will be - but since Phoenix are reworking the project with different technology by going with agitation leach and Merrill Crowe its pretty much given that they've done back of the envelope calculations to show its a better scheme so I'd guess metal recoveries will on average be between 50% and 70% of value so that's usd 485m to 679m m revenues (with more of some metals recovered than others).

So that's 25% to 75% more revenues than the Heap Leach design economic model (RNS August 2019) which had USD 382m and gave an NPV of USD 55m.....which suggests the new model could have an npv moving towards usd 100m !

- And if you want to be more bullish, and include the inferred resource the total metal value if 1.5 billion (yup, one and a half billion usd).

And recovered metal...…..whatever you want and it will be a doubling or more of the revenues used in the August 2019 model. Of course inferred implies less certainty of all the ore being there so metal in the ground values will actually be between one billion and one and a half billion dollars. And the NPV of the project larger than just assuming the USD 970m of 'measured and indicated' metal in the ground value.

- So the Empire mine project could/should still be a multi bagger at current market cap of circa £10m. Just my opinion of course.

And you don't usually get billion dollar metal in the ground projects in a company with a market cap of this size.


- But don't forget Red Star and the hitherto relatively unexplored projects such as Horseshoe (one kilometer north of red star so might connect up), Navarre Gold, the cobalt properties (all in Idaho within driving distance)and even the potential sulphide deep underground mine (which I'd guess a major mining group might be interested in at some stage) all of which have some value...

[trad3m3] 04/5/2020 15:36

Sorry was looking at POW and then switch to PXC and thought there's some censorship on here. And I am glad that this isn't the case again sorry should pay more attention to where I am

[dave4545] 04/5/2020 15:29

brand new account and first posts :-))

[trad3m3] 04/5/2020 15:26

Apologies, wrong shares board please ignore my previous post... so embarrassed

[trad3m3] 04/5/2020 15:17

Why negative posts are deleted... something smells here........ also I do realise some inappropriate words been used but don't appreciate thought police on here....!

[jeanesy] 04/5/2020 14:33

thank you guys. Just found this article
hxxps://www.voxmarkets.co.uk/articles/phoenix-copper-reports-significant-increase-at-empire-mine-pit--6e57e7b

[dave4545] 04/5/2020 14:27

Thought we might go nuts today but so far not to be

But we are up 300% on the bid in last few weeks but those numbers today were massive.

I'm going to leave what I have left and see if it gets to 50-100p range

[goldrush] 04/5/2020 14:25

Hi jeanesy

Saw you around over the years on AAZ.

Pantsonfire post No 210 is the best guide. If you look at the last 50 posts on here it will give you all the background I think you will need.

All the best

g

Edit Pantsonfire posted at the same time !!

[pantsonfire] 04/5/2020 14:23

Hi Jeanesy. Welcome. Phoenix is a relatively new company, which started off by taking over a previous (under) exploited mine, closed down in 1942 for war manpower reasons. Aside some near surface drilling, no modern exploration had been carried out on the property or on the surrounding mineralised area since that time. They completed their IPO in 2017, which provided the funds for an initial drilling campaign to explore the area. The initial focus was to develop a low cost open pit heap leach copper operation. This exploration work showed that the mineralisations were far larger than anticipated, so they increased their stake from 3.3 up to 23.1 sq kms. This included the Navarre Creek property, some 6.5 kilometres west of Empire, which has potential for precious metal discoveries, particularly gold. In the drilling programmes, they located Red Star, a vein which returned assays of high-grade lead and silver sulphides including intercepts of 20% lead and 39.4 ounces of silver per tonne. There is some speculation that there may be more parallel veins awaiting discovery.
With the price of copper dropping, focus for early production switched from Empire to Red Star, with lower capex and an even better return. The exploitation of the Red Star open pit “starter mine” is key to the overall project, and is planned to provide the cash flow to explore far more extensive mineralisation in the deeper sulphide ore body and adjacent land packages.
The Red Star exploration presently under way is fully funded, and we expect the company to be able to move towards project type finance in the next phases, thereby minimising or even eliminating dilution. Red Star has impressive economics and which puts the company into cash flow from end 2021. After this, the open pit is ready to go, plus an underground mine with high grade mineralisations, plus some Cobalt deposits, plus the gold strike at Navarre, plus, plus.
The consultant geologist commented in his report “the potential mineralised system has been less than 1% exploited and explored. Indeed, for all intents and purposes, this northern part of the system remains unexplored with indications of substantial ore potential within medium to high grade polymetallic base & precious metal systems offering significant collective potential tonnage.”
This is why I believe Red Star is just the tip of the iceberg, and this project could convert little minor Phoenix into a world scale miner. The investigations to date show rich seams, and it is worth reading the reports on the Phoenix site plus recent RNS’s. The next step is to confirm full extent of the mineralisation in Red Star (now under way, and just one small part of the whole), and to move into finance for the construction and production. These have all generally proceeded to date in line with company statements, so I have confidence about moving forward. The results today show a potential billion dollar opportunity with a current market capital of about £10 million.
This is my opinion of course, and not advice, so please do your own research. Good luck.

[jeanesy] 04/5/2020 13:57

i dont know much about these but it looks like a great prospect. I Will be doing more research here for sure. Could one of you give me a brief summary. is it a new start up ?

[milliecusto] 04/5/2020 08:50

Very undervalued at 11.5 m mkt cap

[dave4545] 04/5/2020 07:56

When you talked about a ten bagger guys you were not kidding !

Those numbers are in incredible.

Might see 30p today