Phoenix Global Mining Ltd Operational Update (9815W)

TIDMPGM

RNS Number : 9815W

Phoenix Global Mining Ltd

07 August 2018

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

7 August 2018

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

Update on 2018 Drilling Programme

First Drill Core Hole Result and

Acquisition of Empire Southern Extension Granite Block

Phoenix Global Mining Ltd (AIM:PGM), the AIM quoted, US-focused copper exploration and development company, is pleased to announce an operational update, including the first drill results from the Company's 2018, 12,200 metre, reverse circulation ("RC") and diamond drilling programme at the Empire Copper Mine in Idaho, USA (the 'Empire Mine').

Highlights

-- First diamond drill core hole assay result received from the 2018 drilling programme at the Empire Mine with 68 metres of 0.57% copper from surface, including:

o 29 metres of 0.75% copper

o 30 metres of 0.55% copper

-- Acquisition of contiguous claims on the southern end of the Empire claim block, the Granite Block, raising the total Empire land position to 1,837 acres

-- The 12,200 metre 2018 drilling programme is well underway with five drill rigs on site and now over 50% complete

   --      Further drill holes to be reported shortly 

Dennis Thomas, Chief Executive Officer, said, "we are pleased to present the first result from the current drill programme we commenced in June. We are highly encouraged with Hole KXD18-02 which delivered 68 metres at 0.57% copper from surface including the initial 29 metres at 0.75% copper. This is a robust hole and on par with our expectations of this portion of the Empire Mine oxide deposit. Our average grade in the current JORC Resource is 0.52% copper, therefore, if we can deliver further holes like this it will materially improve the economics of our open pit project.

"Also, we are pleased to note the acquisition of the Granite Block claims. This property, along with our other claims, should provide ample space to the southern end of the Empire Mine pit and any expansion beyond the existing resource in that area. Our current understanding of the historical production from the Granite patented claim provides the possibility of a southern extension to the known Empire resource. The potential for resource expansion in the Granite Block, and in the previously reported Horseshoe Block at the north end of the Empire property, is high and will be drill tested later in the summer as part of our ongoing BFS programme.

"We are looking forward to the continued reporting of assay results throughout the summer, as well as reporting on the mineral resource potential of the Horseshoe and Granite Blocks."

Drilling Update

AK Drilling of Butte, Montana is continuing to provide the drilling services to Phoenix and has completed a total of 6,353 metres of drilling at the Empire Mine, to date. This drilling consists of 4,690 metres of RC drilling, 960 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. The results of PQ core hole KXD18-2 have now been received and processed via the Company's QA/QC procedures and are presented below.

 
                   Intersection 
 Hole                 Metres                   %                g/t 
             -----------------------  -------------------  ------------ 
   Number     From    To    Interval   T Cu    Zn     W      Ag     Au 
-----------  -----  -----  ---------  -----  -----  -----  -----  ----- 
 KXD18-02      0.0   68.0       68.0   0.57   0.09   0.01   12.1   0.22 
-----------  -----  -----  ---------  -----  -----  -----  -----  ----- 
 including     0.0   29.0       29.0   0.75   0.06   0.01   13.0   0.16 
-----------  -----  -----  ---------  -----  -----  -----  -----  ----- 
 including     1.5    3.0        1.5   0.97   0.24   0.00   15.5   0.07 
-----------  -----  -----  ---------  -----  -----  -----  -----  ----- 
 including     6.1    6.7        0.6   1.68   0.03   0.01   14.1   0.43 
-----------  -----  -----  ---------  -----  -----  -----  -----  ----- 
 including     9.0   10.5        1.5   1.20   0.08   0.02   25.5   0.56 
-----------  -----  -----  ---------  -----  -----  -----  -----  ----- 
 including    12.0   13.5        1.5   1.25   0.03   0.03   35.4   0.14 
-----------  -----  -----  ---------  -----  -----  -----  -----  ----- 
 including    38.0   68.0       30.0   0.55   0.31   0.01   13.8   0.32 
-----------  -----  -----  ---------  -----  -----  -----  -----  ----- 
 including    39.5   41.0        1.5   0.99   0.13   0.02   14.7   1.25 
-----------  -----  -----  ---------  -----  -----  -----  -----  ----- 
 

Acquisition of the Granite Block

PGM is also pleased to announce the acquisition of the 63 acre Granite Block of claims, a group of one patented and three unpatented claims contiguous to the southern boundary of the main Empire Mine patented claims. The acquisition of the Granite Block claims completes the final operational footprint expansion required to cover the full proposed Empire Mine open pit and increases the Empire Mine's overall land position to a total of 1,837 acres.

A review of the historical smelter receipts provided in the Granite Block data package indicates that production of gold, silver, copper and zinc ores occurred intermittently from 1936 to 1943, and again from 1961 to 1964. Other documentation in the data package suggests that production was predominantly from a shallow shaft sunk in the northwest corner of the patented claim.

Qualified Person

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.

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

 
 Phoenix Global        Dennis Thomas / Richard     Tel: +44 7827 
  Mining Ltd            Wilkins                   290 849 (Dennis) 
                                                         / 
                                                    [phone] 
                                                   657 (Richard) 
--------------------  ------------------------  ------------------ 
 SP Angel              Lindsay Mair / Caroline         Tel: +44 20 
  (Nominated Adviser    Rowe                             3470 0470 
  and Joint Broker) 
--------------------  ------------------------  ------------------ 
 Brandon Hill          Jonathan Evans / Oliver         Tel: +44 20 
  Capital (Joint        Stansfield                       3463 5000 
  Broker) 
--------------------  ------------------------  ------------------ 
 Blytheweigh           Tim Blythe / Camilla            Tel: +44 20 
  (Financial PR)        Horsfall                         7138 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 (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 12,200 metres of reverse circulation (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 BFS (bankable feasibility study). 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. The completion of the BFS is scheduled for Q2 2019.

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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August 07, 2018 02:00 ET (06:00 GMT)