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Phoenix GlobalMining (PXC)

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Tuesday 24 October, 2017

Phoenix GlobalMining

Copper-Cobalt Properties in Idaho

RNS Number : 3919U
Phoenix Global Mining Ltd
24 October 2017
 

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

24 October 2017

 

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

 

Addition of Copper-Cobalt Properties in Idaho

 

Phoenix Global Mining Ltd (AIM:PGM), the AIM quoted, US exploration and development company working on the development of the Empire Mine in Idaho, is pleased to announce that it has added two highly-prospective copper-cobalt properties in the Idaho Cobalt Belt, Lemhi County, Idaho, USA, to its portfolio through its wholly owned Idaho registered company, Borah Resources Inc ("Borah").  Borah has staked and filed the Bighorn and Redcastle copper-cobalt properties.  This is a notable achievement for a company of Phoenix's size given the interest in these properties and the commodity more generally.

 

Highlights

·      Addition of two highly sought-after copper-cobalt properties in the Idaho Cobalt Belt:

Bighorn Property - consists of 29 unpatented claims over 580 acres

Redcastle Property - consists of 30 unpatented claims over 600 acres

·      Properties are located in a previously producing area near to the town of Cobalt in Idaho and are proximal to projects being advanced by Canadian junior miners

·      New wholly owned subsidiary Borah Resources Inc. to develop the copper-cobalt properties

·      Early stage exploration underway - drilling targets in 2018

·      Addition of copper-cobalt properties provides Phoenix with a broader commodity portfolio and exposure to two high demand technology metals with compelling demand/supply fundamentals

·      Borah will utilise substantial amount of in-house expertise gained by geological team at the Empire Mine

 

Dennis Thomas, the Company's CEO, said,

"We are very pleased to have finalised the addition of these highly sought-after properties following a period of substantial interest in cobalt given its price increase from US$25,000 a tonne to US$62,500 in the past 12 months. The geological team based at the Empire Mine identified these properties following their previous experience of working on the Cobalt Belt north of the Empire Mine and were aware of highly prospective areas that had not yet been claimed by the Canadian juniors who currently dominate this historic copper-cobalt belt.

 

"A budget has been allocated to Borah Resources for field work, which is already underway and which will assess the areas that justify drilling after the coming winter. We now have a solid foothold on both the north and south ends of the Cobalt Belt and Phoenix hopes to secure other cobalt opportunities in Idaho alongside our development work focused on recommencing mining at the Empire Copper Mine in 2020."

 

Borah Copper-Cobalt Properties

 

Borah has staked and filed the Bighorn and Redcastle copper-cobalt properties for an annual fee of US$155 per claim. Claims are valid in perpetuity as long as the property is worked each year and the annual maintenance fees are paid.

 

The 580-acre Bighorn Property is comprised of 29 unpatented lode claims approximately 22 miles north-west of the town of Cobalt in the northern portion of the Idaho Cobalt Belt. The claims adjoin the historic Salmon Canyon copper-cobalt mine, a former producing mine, and are situated along strike to the north west on the mineralised Blackbird Horizon of the Yellowjacket Formation, which is known for its cobalt resources.

 

The 600-acre Redcastle Property is comprised of 30 unpatented lode claims that adjoin the Iron Creek Mine property currently held by US Cobalt.  Redcastle is located directly south of Iron Creek and along strike of the mineralised Jackass Creek Horizon of the Yellowjacket Formation. Redcastle is 11 miles south-southeast of the town of Cobalt and 32 miles south-east of the Bighorn property.

 

The town of Cobalt is 130 miles by road north of the Empire Mine and 20 miles west of the town of Salmon. Both properties have good road access.

 

The properties are situated within a northwest-to-southeast trending cobalt-rich district hosted in the Proterozoic metamorphic rocks of the Yellowjacket Formation known as Idaho Cobalt Belt. Cobalt mineralisation occurs predominantly as cobaltite, and cobalt rich pyrite and the copper sulphide mineral chalcopyrite.  

 

There is a substantial amount of interest in the Cobalt Belt in Idaho given the history of cobalt production in the state. TSX listed eCobalt Solutions (market cap ~US$118m) is currently developing the ICP project near Salmon in North Idaho and completed a feasibility study in September 2017 targeting production from 2020. Also, TSXV listed US Cobalt (market cap ~US$26m) is exploring the Iron Creek cobalt project 42km from Salmon.

 

Strategy

The Company has invested heavily in developing its geological team and assets at the Empire Mine in Idaho and these new additions will leverage Phoenix's in-house resources and give access to a strongly performing cobalt commodity at minimal cost.  The geological team on site at the Empire Mine has previous experience of working on the Cobalt Belt in Idaho and its insight has allowed the Company to add these highly sought-after properties to its portfolio.

 

The Company has dedicated a budget to Borah from its existing cash resources for initial exploration activities with a view to identifying drilling targets in 2018.

 

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.

 

**ENDS**

 

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

Phoenix Global Mining Ltd

Dennis Thomas & Richard Wilkins

c/o St Brides Partners

Tel: +44 20 7236 1177

 

SP Angel

(Nominated Advisor)

 

Lindsay Mair / Caroline Rowe

Tel: +44 20 3470 0470

Brandon Hill Capital (Broker)

Jonathan Evans / Oliver Stansfield

/ Alex Walker / Robert Beenstock

 

Tel: +44 20 3463 5000

St Brides Partners

(Financial PR)

Charlotte Page / Susie Geliher

Tel: +44 20 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. Pre-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.

 

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 copper producing company.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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