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.
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