Phoenix Global Mining Ltd 2018 Empire drilling programme (0357B)

TIDMPGM

RNS Number : 0357B

Phoenix Global Mining Ltd

18 September 2018

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

18 September 2018

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

2018 Empire drilling programme intercepts high-grade copper sulphide mineralisation; Mineralised extension recognised to the north and at depth;

Infill drilling identifies very high-grade copper mineralisation

Phoenix Global Mining Ltd (AIM:PGM), the AIM quoted, North American-focused base and precious metals exploration and development company, is pleased to announce a further set of results from the Company's ongoing 2018 drill programme at the Empire Copper Mine in Idaho, USA (the 'Empire Mine'). These results follow those announced on 4 September 2018.

Highlights

-- Extensive evidence of copper sulphides found below the Empire mine and to the north-west, east and south.

-- Significant high-grade copper drill intersections to upgrade the inferred resources inside the open pit as designed in the Preliminary Economic Analysis ("PEA") including:

   o  Hole KXD18-10:            24.7 m of 3.33% copper equivalent from 7.3 m depth 
   o  including                     1.5 m of 10.13% copper equivalent from 11.9 m depth 
   o  including                     2.9 m of 9.11% copper equivalent from 26.5 m depth 
   o  Hole KX18-44:              19.8 m of 2.98% copper equivalent from 164.6 m depth 
   o  including                     7.6 m of 6.38% copper equivalent from 166.1 m depth 
   o  including                     1.6 m of 12.88% copper equivalent from 168 m depth 

-- Stepout drilling outside the PEA open pit intersects high grade copper sulphide mineralisation, including:

   o  Hole KX18-36:              3.0 m of 3.03% copper equivalent from 94.5 m depth 
   o  Hole KX18-39:              7.6 m of 1.22% copper equivalent from 6.1 m depth 
   o  Hole KX18-47:              18.3 m of 1.72% copper equivalent from 54.9 m depth 
   o  and                              4.6 m of 4.83% copper equivalent from 77.7 m depth 
   o  Hole KXD18-9:              2.7 m of 5.46% copper equivalent from 26.4 m depth 
   o  Hole KXD18-12:            4 m of 0.71% copper equivalent from 88.4 m depth 

-- A new zone of mineralisation to be called "Red Star" has been discovered 330 metres north-west of the Empire PEA pit towards the old Horseshoe Mine. The outcrop is 20 metres wide and contains heavy oxide/sulphide mineralisation. Trench samples have been sent for assaying.

-- Five drill hole intercepts contain predominantly chalcopyrite & bornite copper sulphide mineralisation.

-- Hole KX18-47 confirms the presence of higher-grade sulphide mineralisation beneath the oxide open pit.

-- Elevated zinc, gold and silver values are associated with the copper intersections. Grades of up to 8.82% zinc, 7.93 grammes per tonne ("g/t") gold, 256 g/t silver.

-- Assay results from a further 19 drill holes and 298 surface channel samples are pending and will be reported shortly.

Dennis Thomas, Chief Executive Officer, said, "It is our pleasure to present the latest assay results from the ongoing 2018 Empire drill programme. These results are "game changing" for the Company given they provide extensive evidence that a high-grade feeder system exists below the Empire oxide resource and demonstrate the existence of such a sulphide system within the Empire Mine.

"To date, we have focused on the oxides at surface but these results will inevitably require following up with further exploration of the sulphide system. We now have five drill holes that have intercepted predominantly chalcopyrite and bornite copper sulphide mineralisation in high-grade vein structures. This batch of results has given us renewed confidence to explore the sulphides in more detail. Also, quite significantly we have reported material gold and silver grades that would boost project economics.

"In addition, we are pleased to report the discovery of a new zone of surface mineralisation in the Empire block, now referred to as Red Star. Red Star is located approximately 330 metres north-west of the northern end of the Empire resource area and is a 20 metre-wide surface outcrop across the structure. The mineralisation is a mix of oxides and sulphides, with strong chrysocolla and bornite showings, exposed in a heavily timbered canyon. Weather permitting, we plan to drill Red Star before the year end. I look forward to reporting the channel sampling results from Red Star when they become available.

"With regard to the ongoing PEA focused on the copper oxide exploration, we are highly encouraged by the infill drilling results in and around the Empire pit. Notable results are 19.8 metres of 1.88% copper including 1.6 metres of 8.85%, and 24.7 metres of 1.58% copper which include 0.9 metres of 7.72% copper in hole KX18-10. Not only do we believe that these results will have a positive effect on the overall grade and tonnage in the existing resource, but the 19.8 metre intercept sits entirely below the Empire PEA pit shell, which should have a positive effect on the expansion of the resource in that area. "We would also point out that the 7.72% (KXD18-10) and 8.85% copper (KX18-44) intercepts present as copper oxides in the core and reverse circulation ("RC") chips appear to be associated with high-angle structures continuing at depth. The Empire team will use these higher-grade intervals to continue defining the deeper sulphide system. Drill hole KX18-44 (8.85% copper) was a follow-up to last season's drill hole KXD17-10 (4.6 metres of 1.34% copper, including 1.5 metres of 2.45% copper), which was part of a 2017 deep sulphide drilling programme, the results of which were reported by the Company in January 2018.

"Finally, we are now targeting additional drilling to be completed in the next two months that will follow up on the previously reported eastern and western mineralised extensions, as well as the newly recognised north-western extension, and follow up on the sulphide mineralisation reported here. Our infill drilling programme will also continue into the autumn, which is designed to upgrade the inferred resources to the measured and indicated category. Thus far, the infill drilling programme results are robust and will be used to update the resource model in which the average grade of the "measured and indicated" resource is 0.52% copper. Our hope is that continued drilling results similar to those reported here and previously will have a positive effect on the overall grade and tonnage, which will materially enhance the economics of the project.

"We will continue to report new assay results over the next few months as the drilling progresses and the results are received from the ALS Global laboratory in Nevada."

Drilling Update

Of the planned 12,200 metre drill programme scheduled for completion in 2018, Phoenix has completed a total of 7,604 metres of drilling at Empire. To date this consists of 5,328 metres of RC drilling, 1,573 metres of HQ core drilling, and 703 metres of PQ core 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 core holes KXD18-7 through to KXD18-13 and RC holes KX18-35 through to KX18-47 are shown below. The copper equivalent grade ("Cu Equ") is calculated on the basis of metal prices as follows - copper $6,000/tonne, zinc $2,325/tonne, gold $1,200/oz and silver $14.0/oz.

 
 Hole                   Intersection              Tcu     Zn     Au     Ag      Cu 
                           Metres                                               Equ 
 Number         From         To        Interval    %      %     g/t     g/       %     Comments 
 
 KX18-36        94.5        97.5         3.00     1.14   0.04   1.25    9.3    3.03    stepout 
 KX18-38        100.6      102.1         1.50     0.79   0.13   0.39   29.2    1.31    stepout 
 KX18-39         6.1        13.7         7.60     0.31   0.14   1.10   20.0    1.22    stepout 
 KX18-42        19.8        27.4         7.60     0.27   0.07   0.10    5.5    0.40     infill 
   and          38.1        45.7         7.60     0.32   0.07   0.17    5.9    0.50     infill 
   and          62.5        64.0         1.50     0.40   0.07   0.06    4.5    0.50    stepout 
 KX18-43        29.0        32.0         3.00     0.42   0.21   0.01    2.4    0.53     infill 
 KX18-44        164.6      184.4        19.80     1.88   0.65   0.79   44.8    2.98     infill 
   including    166.1      173.7         7.60     4.23   0.77   1.71   100.6   6.38     infill 
   including    168.0      169.0         1.60     8.85   0.79   4.56   105.0   12.88    infill 
 KX18-47         6.1        16.8        10.70     0.61   0.02   1.46   29.8    1.78     infill 
   including     7.6        12.2         4.60     0.91   0.02   2.42   49.2    2.84     infill 
   and          54.9        73.2        18.30     0.96   0.08   0.83   26.3    1.72    stepout 
   including    65.5        71.6         6.10     1.62   0.04   0.88   25.9    2.40    stepout 
   and          77.7        82.3         4.60     2.54   0.07   2.85   57.0    4.83    stepout 
   including    77.7        79.2         1.50     5.53   0.14   7.67   120.0   11.42   stepout 
 KXD18-9         0.0        3.1          3.10     0.36   0.50   0.06    6.7    0.64    stepout 
   and          13.7        16.8         3.00     0.48   2.07   0.07    6.6    1.38    stepout 
   and          26.4        29.1         2.70     2.99   5.07   0.33   39.2    5.46    stepout 
   including    27.4        29.1         1.70     5.19   8.82   0.42   59.1    9.32    stepout 
 KXD18-10        0.0        1.5          1.50     0.71   1.10   0.12    8.8    1.28     infill 
   and           7.3        32.0        24.70     1.58   1.96   1.20   28.7    3.33     infill 
   including    11.9        13.4         1.50     2.85   4.80   7.93   43.2    10.13    infill 
   including    17.7        32.0        14.30     2.23   1.11   0.89   41.5    3.54     infill 

   including    26.5        29.4         2.90     4.53   0.19   4.02   256.3   9.11     infill 
   including    21.0        21.9         0.90     7.72   1.46   3.32   83.5    11.05    infill 
 KXD18-11       38.7        43.2         4.60     0.47   0.10   0.68    9.2    1.02     infill 
   and          57.6        62.2         4.60     0.79   0.06   0.24   14.9    1.08    stepout 
   including    57.6        59.1         1.50     1.61   0.09   0.70   41.0    2.40    stepout 
 KXD18-12        9.8        11.3         1.50     0.40   0.06   0.02    9.3    0.51     infill 
   and          84.4        88.4         4.00     0.55   0.07   0.03   15.0    0.71    stepout 
 KXD18-13       22.7        26.5         3.80     0.59   0.07   0.13   17.8    0.83     infill 
   including    25.1        26.5         1.30     1.23   0.05   0.49   53.5    1.97     infill 
 
 

There are currently five RC holes and 14 diamond drill holes, along with 298 surface channel samples, awaiting assay results. These results will be announced following the receipt of assay certificates and QA/QC sign-off.

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   Dennis Thomas / Richard Wilkins        Tel: +44 7827 
  Ltd                                                          290 849 (Dennis) 
                                                                      / 
                                                               [phone] 
                                                                  (Richard) 
 SP Angel                Lindsay Mair / Caroline Rowe          Tel: [phone] 
  (Nominated Adviser                                                       0470 
  and Joint Broker) 
                        -----------------------------------  ------------------ 
 Brandon Hill Capital    Jonathan Evans / Oliver Stansfield    Tel: [phone] 
  (Joint Broker)                                                           5000 
                        -----------------------------------  ------------------ 
 Blytheweigh             Tim Blythe / Camilla Horsfall         Tel: [phone] 
  (Financial PR)          / Megan Ray                                      3204 
                        -----------------------------------  ------------------ 
 

Notes

Phoenix Global Mining Ltd (AIM: PGM) 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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September 18, 2018 02:00 ET (06:00 GMT)