Phoenix Global Mining Ltd Empire Mine Feasibility and Step Out Drilling (7726R)

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RNS Number : 7726R

Phoenix Global Mining Ltd

19 June 2018

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

19 June 2018

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

2018 Empire Mine Project Feasibility and Step Out Drilling Commences, Followed by Exploration Stage Drilling in Newly Acquired Horseshoe Block

Phoenix Global Mining Ltd (AIM:PGM.L), the AIM quoted North American-focused base and precious metals exploration and development company, is pleased to announce that it has commenced an ambitious and highly targeted drilling programme in connection with the preparation of the Bankable Feasibility Study (BFS) for the Empire Mine open pit, and to build additional copper resources around the open pit resource at the Empire Mine. The latter will involve step out drilling and a maiden drill programme at the Horseshoe Block, which the Company acquired in 2017 and sits immediately along the northern boundary of the open pit at the Empire Mine.

Highlights

   --      Five drill rigs to drill a total of 40,000 feet 
   --      BFS drill programme underway 
   --      Pit step out drilling planned 
   --      Maiden exploration drill programme at the Horseshoe block 

The Empire Mine - BFS Drilling

The BFS drilling programme at the Empire Mine in Idaho commenced on 1 June 2018 with the collaring of both reverse-circulation (RC) and core holes by AK Drilling of Butte, Montana. AK Drilling completed the PEA-level drilling at Empire in 2017.

During the course of the 2018 drilling programme, five drill rigs will be used to complete the following work for the purposes of the BFS:

   --      increasing the open pit resource 
   --      infill drilling to upgrade the existing inferred resources 
   --      core drilling for metallurgical samples 
   --      geotechnical drilling for open pit slope-stability data 
   --      hydrological testing. 

The data collected will be used for the BFS on the open pit of the Empire Mine which the Company expects to be published in Q2 2019.

Step out Drilling at the Empire Mine and the first drill holes at the Horseshoe Block

The Company has commenced its step out drilling programme around the existing open pit at the Empire Mine and will undertake its maiden drill programme on the Horseshoe Block (which sits to the north of the open pit at the Empire Mine). Most of the recorded production from the Horseshoe area was from the former Horseshoe Mine, with the last shipment of 2,900 tons of ore in 1979 with grades averaging 3.8% copper and 12% zinc. The 2018 programme will consist of RC and HQ diamond holes.

Dennis Thomas, the Company's CEO, said, "We are pleased to commence our BFS drill programme and our excellent relationship with AK Drilling has allowed us to secure a drilling fleet sufficient to complete all of the work necessary for the BFS in one season. Also, this allows us to dovetail a step-out and exploration drilling programme using the same rigs as they complete the feasibility work on the Empire Mine. We are confident that we can continue to build value for shareholders by drilling for additional copper resources through stepping out at the open pit and putting the first holes into the Horseshoe Block where some very interesting copper grades have been mined historically. We have a total of 40,000 feet (12,100 metres) of drilling planned and we look forward to updating the market throughout the drilling season as laboratory and testing results become available."

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. Mineralization 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.

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   Dennis Thomas / Richard Wilkins      Tel: +44 7827 
  Ltd                                                          290 849 (Dennis) 
                                                               / 
                                                               [phone] 
                                                               657 (Richard) 
 SP Angel                Lindsay Mair / Caroline Rowe         Tel: +44 20 
  (Nominated Adviser                                           3470 0470 
  and Joint Broker 
                        -----------------------------------  ------------------ 
 Brandon Hill Capital    Jonathan Evans / Oliver Stansfield   Tel: +44 20 
  (Joint Broker)                                               3463 5000 
                        -----------------------------------  ------------------ 
 

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.

Having established an initial copper oxide JORC and NI 43-101 resource of 19.4 mt grading 0.47% copper ('Cu') for 90,547 t contained Cu, plus zinc, gold and silver, 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 8,000t copper cathode per annum. 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 Economic Analysis 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 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. Exploration will continue during 2018 to identify drilling targets.

The Company has also acquired an exclusive option to explore and develop the Gordon Lake Project, in the Northwest Territories, Canada, 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 and precious metals producing company, offering exposure to three high value and high demand metals with compelling demand/supply fundamentals.

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June 19, 2018 02:00 ET (06:00 GMT)