TIDMPXC
RNS Number : 6739Y
Phoenix Copper Limited
08 September 2022
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
8 September 2022
Phoenix Copper Limited
("Phoenix" or the "Company")
Operational & Financing Update
Phoenix Copper Ltd (AIM: PXC, OTCQX ADR: PXCLY), the AIM quoted
USA focused base and precious metals emerging producer and
exploration company, is pleased to provide an update on operations
at its Idaho, USA projects, as well as the Company's corporate
copper bond issue.
Highlights:
-- Drilling at the Empire open pit copper mine ("Empire")
commenced in June 2022 to further the Company's understanding of
metallurgical recovery using Ammonium Thiosulfate ("ATS")
reagent;
-- Trade-off, optimization, and engineering studies progressing on Empire;
-- Exploratory drilling in the North Pit/Red Star area to commence on 15 September 2022;
-- Navarre Creek drilling plan approved by US Forest Service ("USFS"); and
-- Corporate copper bond issue underway with an initial tranche
expected to complete in the next few weeks.
Ryan McDermott, CEO of Phoenix Copper Limited said : " The work
carried out this summer is moving the Company closer to its goal of
bringing Empire into production in the most economical and
environmentally sustainable way possible. We are making progress
across all fronts, though are not immune to the same supply chain
and contractor staffing challenges that companies throughout the
industry are experiencing.
"Metal prices, as well as equipment and supply pricing, are
fluctuating wildly as we pivot back toward pre-covid norms. While
equipment and supply pricing stabilize, our staff are using this
time to evaluate and test technologies that we hope will improve
the project economics for Empire and reduce our environmental
footprint, such as aerial tramming from the open pit to the
processing facility versus classical truck haulage, and concurrent
leaching of copper and precious metals using the environmentally
friendly ATS reagent.
"There is currently a heavy focus on the domestic production of
metals for green energy technologies like wind turbines, solar
panels, and electric vehicles, particularly with the recent news
that the California Air Resources Board has mandated that all new
vehicle sales will be electric or hydrogen by 2035, and that
several other States, as well as Canada and the E.U., are following
suit. Our key value proposition is the copper resource at Empire
that will help meet the global demand created by these green
electrification initiatives and mandates. As more and more of these
green energy programs are initiated, we expect the demand for
copper and critical EV metals to increase, likely far surpassing
supply. We are well positioned to meet some of that demand,
initially from the open pit mine and ultimately from the previously
mined deeper sulfide deposit where we have intercepted copper
grades in excess of 8%.
"I am also pleased to report that we have now managed to secure
a second drill rig which will arrive on site on 15 September and
will commence an exploratory drilling program at the North Pit/Red
Star area.
"I should also mention that we have received a Decision Memo
from the USFS approving the first drilling program at our Navarre
Creek gold project. We submitted an operation plan for the drilling
on 15 April 2021, it was approved on 30 August 2022 and will
commence in June of next year. This will allow us to follow up on
the encouraging surface geochemistry and geophysics completed at
Navarre Creek over the last few years.
"Finally, the corporate copper bond issue launched in June has
attracted considerable interest from potential investors, given the
positive long-term outlook for copper demand. Despite a difficult
market, an initial tranche is expected to complete in the next few
weeks, which will enable us to accelerate the ongoing development
of Empire and the surrounding mineralized district, including
placing orders for long lead-time items of equipment, and
appropriate preparatory work on our patented land. I look forward
to providing our shareholders with further updates regarding the
bond issue as appropriate."
Empire open pit
Phoenix initiated its 2022 drilling program in June to provide
samples for ATS metallurgical test work. ATS is the non-toxic,
environmentally friendly reagent the Company plans to use for the
recovery of base and precious metals from Empire's open pit
resource. With the results of these studies, the Company will
determine whether the production of precious metals can be moved
from the secondary phase of the operation to the primary phase. If
feasible, this would potentially enhance Empire's projected
economics in the early years of production.
There is no statutory timeframe for approval of the Plan of
Operations (the "Empire Plan"). However, it appears that few, if
any, negative impacts from future operations will exist and Phoenix
is confident that it will be able to address any concerns that
regulators may raise. The Company is positioning itself to commence
construction of the mine and processing facilities, immediately
followed by initial production, as soon as the Empire Plan is
approved.
Red Star
A second drill rig is scheduled to arrive on site in the middle
of September 2022 and will report to the North Pit/Red Star area
upon its arrival. The month-long drilling program is anticipated to
improve the Company's understanding of mineralization in the
area.
Navarre Creek (Gold)
Phoenix Copper submitted a Plan of Operations for drilling
activities at Navarre Creek to the USFS on 15 April 2021 (the
"Navarre Creek Plan"). The USFS posted a public scoping notice of
the Navarre Creek Plan on 18 November 2021, and the Navarre Creek
Plan was approved on 30 August 2022, clearing the way for an
initial drilling program comprised of up to 60 reverse-circulation
("RC") drill holes from 30 drill pads located on various targets on
the Navarre Creek claim block. The Navarre Creek Plan was approved
under a Categorical Exclusion, meaning that it is categorically
excluded from documentation in an Environmental Assessment or
Environmental Impact Statement, for the following reasons: 1) the
initial drilling program will be completed in one year or less, 2)
the Navarre Creek Plan proposes less than one mile of new road
construction (existing roadways will be utilized for access), and
3) the Navarre Creek Plan proposes use of overland equipment travel
(low ground pressure equipment). The Company has reserved an RC
drilling rig from Alford Drilling that is scheduled to arrive in
June 2023.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 which has been
incorporated into UK law by the European Union (Withdrawal) Act
2018. Upon the publication of this announcement via Regulatory
Information Service, this inside information is now considered to
be in the public domain.
Contacts
For further information please visit https://phoenixcopperlimited.com or contact:
Phoenix Copper Ryan McDermott Tel: +1 208
Limited Brittany Lock 954 7039
Richard Wilkins Tel: +1 208
794 8033
Tel: +44 7590
216 657
SP Angel Corporate David Hignell / Caroline Rowe Tel: +44 20
Finance LLP (Nominated 3470 0470
Adviser)
------------------------------------ ---------------
Tavira Securities Jonathan Evans / Oliver Stansfield Tel: +44 20
Limited (Joint 7100 5100
Broker)
------------------------------------ ---------------
WH Ireland (Joint Harry Ansell / Katy Mitchell Tel: +44 20
Broker) 7220 1666
------------------------------------ ---------------
Panmure Gordon John Prior / Hugh Rich / Ailsa Tel: +44 20
(UK) Limited (Joint Macmaster 7886 2500
Broker)
------------------------------------ ---------------
EAS Advisors (US Matt Bonner / Rogier de la Rambelje Tel: +1 (646)
Corporate Adviser) 495-2225
------------------------------------ ---------------
BlytheRay Tim Blythe / Megan Ray Tel: +44 20
(Financial PR) 7138 3204
------------------------------------ ---------------
Notes
Phoenix Copper Limited is a USA focused, base and precious
metals emerging producer and exploration company, initially
targeting copper and zinc production from an open pit mine.
Phoenix's primary operations are focused near Mackay, Idaho in
the Alder Creek mining district, at the 80% owned Empire Mine
property, which historically produced copper at grades of up to 8%,
as well as gold, silver, zinc and tungsten, from an underground
mine.
Since 2017, Phoenix has carried our extensive drill programs
which have defined a NI 43-101 compliant PEA (preliminary economic
assessment) for an open pit heap leach solvent extraction and
electrowinning ("SX-EW") mine, which was updated in October 2020.
The contained metal in all NI 43-101 compliant categories of
resources, Measured, Indicated and Inferred, stand at 129,641
tonnes of copper, 355,523 ounces of gold, 10,133,772 ounces of
silver and 58,440 tonnes of zinc. Phoenix updated its economic
model in February 2021 to include the processing of all contained
metals through a two phased approach.
In addition to Empire, the district includes the historic
Horseshoe, White Knob and Blue Bird Mines, past producers of
copper, gold, silver, zinc, lead and tungsten from underground
mines. A new discovery at Red Star, 330 metres northwest of the
Empire Mine proposed open pit, has revealed high grade silver /
lead sulphide ore, and from three shallow exploration drill holes a
maiden resource of 103,000 tonnes containing 173.4 g/tonne silver,
0.85 g/tonne gold and 3.85% lead (1.6 million ounces silver
equivalent) was reported in an NI 43-101 technical report published
in May 2019. Additionally, the district includes Navarre Creek, a
volcanic hosted precious metals target in a 14.48 sq km area. The
Company's total land package at Empire comprises 8,034 acres (32.51
sq kms).
At Empire, it is estimated that less than 1% of the potential
ore system has been explored to date and, accordingly, there is
significant opportunity to increase the resource through phased
exploration. The stated aim of the Company is to fund this phased
exploration through free cashflow generated by its initial mine. A
Plan of Operations in respect of the initial open pit mine was
filed with the relevant regulatory authorities in June 2021.
Phoenix also has two wholly owned cobalt properties on the Idaho
Cobalt Belt to the north of Empire. An Earn-In Agreement has been
signed with Electra Battery Materials (formerly First Cobalt
Corporation), Toronto, in respect of one of those properties.
Phoenix is listed on London's AIM (PXC), and trades on New
York's OTCQX Market (PXCLF and PXCLY (ADRs)). More details on the
Company, its assets and its objectives can be found on PXC's
website at https://phoenixcopperlimited.com/
END
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