TIDMPXC
RNS Number : 0744A
Phoenix Copper Limited
18 January 2024
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
18 January 2024
Phoenix Copper Limited
('Phoenix' or the 'Company')
Operational Update
Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLY), the AIM-quoted
USA-focused base and precious metals emerging producer and
exploration company is pleased to provide an update on the
Company's operations in Idaho, USA.
Highlights:
- Pre-Feasibility Study ("PFS") for the proposed Empire Open-Pit
copper, gold, and silver deposit nearing completion
Ryan McDermott, CEO of Phoenix Copper Limited, said : "I am
pleased to provide an update regarding the ongoing work on our
Empire Open-Pit Mine project in Idaho. The PFS for the Empire
Open-Pit Mine is nearing completion, and barring any unforeseen
delays is anticipated for delivery to the Company by early Q2 2024.
The final PFS report will include a comprehensive mine plan,
mineral processing design, compliant mineral reserves calculated as
deliverable metal for smelting or refining, net of mining dilution,
detailed operating and capital cost estimates, and final economic
analysis and cashflow. The completion of this report will represent
a significant milestone for the Company and will enable us to make
final amendments to the Plan of Operations for permitting purposes,
and to commence procurement of certain relevant capital equipment
items.
"The critical part of the Empire Open-Pit PFS process has been
to test the viability of a variety of mining and processing
options, optimize multiple options, and conduct numerous checks on
laboratory and engineering findings to help ensure that we have
maximum flexibility prior to moving forward with the final stages
of development engineering. This PFS process has been "result"
oriented. In these types of studies, the initial results and
findings can often lead to further studies, all helping to ensure
that the final plans are as robust as possible.
"The Company endeavors to meet the timelines it develops for
itself and shareholders. It is of particular importance to me that
everyone understands that the nature of the studies we undertake to
ensure the best mining and production outcomes can be
time-consuming and not always predictable. I appreciate everyone's
patience as we complete each step of the PFS. Mining is a
long-term, capital-intensive business, and we believe the time
spent on optimizing the mine plan and processing design at this
stage can bring significant financial benefits to the project over
the life of the mine.
"I would also like to provide an update on the Navarre Creek
gold exploration program. As we reported in October 2023, 400 acres
of additional unpatented mining claims were staked contiguously to
the southwest end of our existing claim block following our initial
review of the results from the 2023 drilling program. Since that
reporting, the Phoenix team has been focused entirely on the
analysis and engineering required for the Empire PFS. However, our
expanded land position at Navarre Creek affords us the time to
further assess the exploration data and develop a strategy for the
next phase of drilling to be conducted this year. We will report
more information regarding Navarre Creek as soon as time
allows."
Pre-Feasibility Study (PFS)
The Empire Open-Pit Mine PFS was commissioned in early 2023 and
began with comprehensive metallurgical engineering studies, using
metallurgical core obtained during the 2022 metallurgical drilling
programme and assay results that became available from the
laboratory in early 2023. In addition to metallurgy, the PFS will
include a comprehensive analysis of geological models, mine design,
mineral processing design, environmental assessment and analysis,
estimation of operating and capital costs, and final economic
analysis and cashflow modeling.
Process Design and Metallurgical Testing
The metallurgical test work and process design engineering
completed to date as part of the PFS, indicates that oxide
flotation + tank leach tails processing will provide the most
optimal results.
The process design/metallurgical engineering team has completed
preliminary test work on electrical load calculations, comminution
testing, flotation concentrate smelter penalty analysis,
variability testing, thickening testing, leach residue analysis,
and cementation. Additional sample composites representing several
mining phases are currently undergoing final laboratory testing.
Additionally, laboratory checks and some final grinding studies,
rougher/cleaner flotation testing, and leach tails analysis are in
process in the laboratory and anticipated for completion during Q1
2024. The results of all of the work will be incorporated into the
PFS.
Environmental, Social, and Corporate Governance
Phoenix is committed to meeting and exceeding the environmental
standards required by law as a core value of the Company. The
baseline environmental data collected to date will be used to
further the permitting process, but as importantly, will be used as
the building blocks for the Company's ongoing Environmental,
Social, and Corporate Governance (ESG) platform, overseen by the
Company's ESG & Sustainability Committee. The Company has
recently published its inaugural Sustainability Report, which can
be viewed on the Company's website.
Market Abuse Regulation (MAR) Disclosure
The Company deems the information contained within this
announcement 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 the 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 Tel: +44 20
Finance LLP (Nominated Rowe / Kasia Brzozowska 3470 0470
Adviser)
----------------------------------- ---------------
Tavira Financial 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 Hugh Rich / Ailsa Macmaster Tel: +44 20
(UK) Limited 7886 2500
(Joint Broker)
----------------------------------- ---------------
EAS Advisors Matt Bonner / Rogier de la Tel: +1 (646)
(US Corporate Rambelje 495-2225
Adviser)
----------------------------------- ---------------
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, gold, silver 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 out extensive drill programmes
which have defined a NI 43-101 completed PEA (preliminary economic
assessment) for an open pit heap leach solvent extraction and
electrowinning ("SX-EW") mine, which was updated in October 2020.
From the 2020 PEA, the measured and indicated resource is
22,909,059 tonnes at an average grade of 0.38% copper, 0.324
grammes per tonne ("g/t") gold, 10.3 g/t silver, and 0.19% zinc.
The contained metal for the measured and indicated resource is
87,543 tonnes of copper, 238,406 ounces of gold, 7,595,198 ounces
of silver and 43,871 tonnes of zinc.
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 inferred resource of 103,000 tonnes containing 173.4 g/t
silver, 0.85 g/t 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 16.09 sq km area. The
Company's total land package at Empire comprises 8,434 acres (34.13
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, 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/
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END
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