Phoenix Global Mining Ltd Empire Mine Update (1729V)

TIDMPGM

RNS Number : 1729V

Phoenix Global Mining Ltd

01 November 2017

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

1 November 2017

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

Robust drill results continue to support an increased copper resource at the Empire Mine, Idaho

Phoenix Global Mining Ltd (AIM:PGM), the AIM quoted, US-focused copper exploration and development company, is pleased to announce further drill results from its recently completed 28 drill hole reverse circulation ('RC') and diamond drill programme at the Empire Copper Mine in Idaho, USA (the 'Empire Mine').

Highlights

   --      Final batch of drilling results include the following from the AP Pit oxide deposit: 

o 6.1m @ 2.08% copper ('Cu'), 79.18 g/t silver ('Ag') and 2.48 g/t gold ('Au') (Cu equivalent grade 4.35%)

o 24.4m @ 1.06% Cu, 34.82 g/t Ag and 0.17 g/t Au (Cu equivalent grade 1.84%)

o 29.0m @ 0.88% Cu, 46.84 g/t Ag and 0.29 g/t Au (Cu equivalent grade 1.64%)

-- The second of two diamond drill holes targeting the higher grade and deeper sulphide mineralisation is underway. The final depth of the first hole was 314m. Assay results for the two holes are expected in December 2017

Dennis Thomas, the Company's CEO, said, "The final batch of drill hole assays from our 2017 oxide drilling program were received and remain as impressive as the previous results which were reported on October 5th. Copper intersections include longer intervals of 24.4m of 1.06% and 29.0m of 0.88% with numerous shorter intervals as high as 6.26% together with significant gold and silver. The average grade of the existing JORC resource is 0.53% copper.

"I am also pleased to report that we have completed the first of two diamond drill holes targeting the deeper sulphides at a depth of 314m underlying the AP Pit. We anticipate receipt of analytical data from this deeper hole in December.

"Finally, we continue to be on track to deliver a new JORC Resource for the AP Pit oxides this month now that all of the assays have been received."

Drilling Programme

The Company's drilling contractor, AK Drilling Inc., completed the 28 drill hole programme in the AP Pit oxide deposit in September 2017. This included 21 reverse circulation drill holes and 7 PQ and HQ diamond drill holes.

The following is the summary of results from the last 6 of these 28 holes which are PQ and HQ diamond drill holes. The results for all other holes were included in the Company's October 5(th) 2017 press release. These results, together with all of the historic drilling results, will now be used by the Preliminary Feasibility Study (PFS) consultant to complete the new AP Pit oxide resource calculation.

 
    Hole           Intersection             %         gms / tonne          % 
                      Metres 
-----------  -----------------------  ------------  --------------  -------------- 
   Number     From    To    Interval   T Cu    Zn      Ag      Au    Cu Equivalent 
-----------  -----  -----  ---------  -----  -----  -------  -----  -------------- 
 KXd17-2      0.0    39.6     39.6     0.85   0.60   25.89    0.18       1.46 
-----------  -----  -----  ---------  -----  -----  -------  -----  -------------- 
  including   7.6    33.5     24.4     1.06   0.84   34.82    0.17       1.84 
-----------  -----  -----  ---------  -----  -----  -------  -----  -------------- 
  including   10.7   13.7     3.0      2.57   0.12   162.50   0.59       4.37 
-----------  -----  -----  ---------  -----  -----  -------  -----  -------------- 
 KXd17-4      0.0    15.2     15.2     1.00   0.07    9.73    0.07       1.16 
-----------  -----  -----  ---------  -----  -----  -------  -----  -------------- 
  including   12.2   15.2     3.0      1.51   0.13    4.65    0.01       1.62 
-----------  -----  -----  ---------  -----  -----  -------  -----  -------------- 
        and   36.6   79.2     42.7     0.62   0.11   15.56    0.21       0.93 
-----------  -----  -----  ---------  -----  -----  -------  -----  -------------- 
  including   53.3   73.2     19.8     0.86   0.12   23.52    0.32       1.31 
-----------  -----  -----  ---------  -----  -----  -------  -----  -------------- 
 KXd17-5      0.0    29.0     29.0     0.88   0.39   46.84    0.29       1.64 
-----------  -----  -----  ---------  -----  -----  -------  -----  -------------- 
  including   25.9   27.4     1.5      6.26   1.13   338.00   0.93       10.21 
-----------  -----  -----  ---------  -----  -----  -------  -----  -------------- 
 KXd17-5A     6.1    9.1      3.0      0.98   0.61   75.60    0.37       2.12 
-----------  -----  -----  ---------  -----  -----  -------  -----  -------------- 
        and   27.4   30.5     3.0      1.31   0.19   78.75    0.43       2.32 
-----------  -----  -----  ---------  -----  -----  -------  -----  -------------- 
 KXd17-6      15.2   18.3     3.0      0.66   0.07   784.70   0.07       7.36 
-----------  -----  -----  ---------  -----  -----  -------  -----  -------------- 
 KXd17-7      9.1    15.2     6.1      2.08   0.09   79.18    2.48       4.35 
-----------  -----  -----  ---------  -----  -----  -------  -----  -------------- 
  including   10.7   12.2     1.5      4.19   0.06   195.00   6.04       9.67 
-----------  -----  -----  ---------  -----  -----  -------  -----  -------------- 
 

"Copper Equivalent" is the value of all metals expressed as a copper grade

     Prices (Sept -       copper = US$6,850/tonne | zinc = US$3,080/tonne 

silver = US$18.00/oz | gold=US$1,340/oz

JORC Oxide Resource for the PFS

The excellent copper grades received from these holes will enhance the JORC resource, which will be updated now that all of the assays from the AP Pit drilling programme have been received. With current zinc, gold and silver prices there is significant value in these by-product metals. The potential for recovering the gold and silver from the same heaps when copper recovery is completed will be investigated.

A key component of the PFS programme is the updated JORC resource which is on track to be issued this month.

PFS Programme

The consultancy team who are managing the PFS continue to make good progress with completion of the PFS on track for Q2 2018:

The study consists of the following:

   --      Update AP pit oxide resources and mineable reserves 
   --      Mine plan, production schedule and capital and operating cost estimates 
   --      Updated metallurgical test work 

-- Crush and stack design, heap leach pads, ponds and SX-EW plant design and capital and operating cost estimates

   --      Infrastructure design and costs 
   --      Water, soil, wildlife and vegetation environmental base line study 
   --      Project financial analysis and sensitivity analysis 

Sulphide Exploration

The Company has commenced the exploration programme on the deeper sulphide potential resources, where grades of up to 11.4% copper were recorded during historical underground mining operations. The first of two diamond drill holes targeting the sulphide zone below the old workings has been completed from surface to a depth of 314 metres. A second deep sulphide hole has been started. All assays from these holes will be received in December. In the meantime, the opening of two of the adits to gain access to the old underground workings is progressing. Once completed, an underground mapping, sampling and drilling campaign will begin.

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.

**S**

For further information please visit www.pgmining.com or contact:

 
 Phoenix Global         Dennis Thomas & Richard           c/o St Brides 
  Mining Ltd             Wilkins                               Partners 
                                                            [phone] 
                                                                   1177 
---------------------  --------------------------------  -------------- 
 SP Angel               Lindsay Mair / Caroline             Tel: +44 20 
  (Nominated Advisor)    Rowe                                 3470 0470 
---------------------  --------------------------------  -------------- 
 Brandon Hill           Jonathan Evans / Oliver             Tel: +44 20 
  Capital (Broker)       Stansfield/ Alex Walker/Robert       3463 5000 
                         Beenstock 
---------------------  --------------------------------  -------------- 
 St Brides Partners     Charlotte Page / Susie              Tel: +44 20 
  (Financial PR)         Geliher                              7236 1177 
---------------------  --------------------------------  -------------- 
 

Notes

Phoenix Global Mining Ltd (AIM: PGM) is a US-focused, base metal explorer and developer, which is fast-tracking the historically-producing Empire Mine in Idaho, USA back into production.

Having established an initial copper oxide JORC resource of 12.8mt grading 0.53% copper ('Cu') for 68,200t contained Cu from historical drill holes, 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 7,000t copper cathode per annum by 2020 via an SX-EW plant. 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 Feasibility Study 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. Furthermore, the Mine has an exploration target of between 3.4 to 6.7 million tonnes (derived from historic data), grading 0.34% to 0.50% Cu for 11,560 to 33,500 tonnes of additional contained copper and there is potential to extract additional metals, including gold, silver, zinc and tungsten.

The Company also holds two highly prospective cobber-cobalt properties in Idaho, US, which are located north of the Empire Mine. These are situated close to the town of Cobalt and are proximal to projects being advanced by Canadian junior miners, including eCobalt Solutions and US Cobalt. Early stage exploration is currently underway and drilling is targeted to commence in 2018.

With a management team that has successfully constructed, commissioned and operated mines and a low risk, mining-friendly jurisdiction with excellent infrastructure, Phoenix is looking to fulfil its ambitions to become a mid-tier base metal producing company, offering exposure to two high demand technology metals with compelling demand/supply fundamentals.

This information is provided by RNS

The company news service from the London Stock Exchange

END

DRLWGGQWUUPMGMG

(END) Dow Jones Newswires

November 01, 2017 03:00 ET (07:00 GMT)