Phoenix Copper Limited / Ticker: PXC / Sector: Mining

1 September 2021

Phoenix Copper Limited

('Phoenix' or the 'Company')

Empire Mine Deep Sulphide Drilling Intercepts 8.38% Copper Sulphide Mineralisation

Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLF), the AIM quoted USA focused base and precious metals emerging producer and exploration company, is pleased to announce the first analytical results from the Company's 2021 Deep Sulphide core drilling programme, under the oxide open pit, at the Empire Mine in Idaho, USA ('Empire'). 

Programme Highlights

·    Assay results from the first Hole KXD21-02 intercepts high-grade mineralisation across a suite of metals

o  Significant intercept of 8.38% copper in the underground sulphides

o  Copper, gold, silver and zinc mineralisation intercepted in the oxide zone of the proposed open pit

·    Hole KXD21-02

Open Pit Oxides

o  At 86.9 metres ('m') depth 0.8 m of 1.10 grammes per tonne ('g/t') gold, 80.70 g/t silver, 1.44% copper

o  At 98.1 m depth 0.5 m of 258 g/t silver, 1710 ppm (0.17%) tungsten

o  At 142.6 m depth 5.0 m of 19.3 g/t silver, 0.77% copper, incl. 1.7 m of 1.1% copper, 1.08% zinc

Underground Sulphides (below 170 m)

o  At 185.9 m depth 2.0 m of 0.38 g/t gold, 34.38 g/t silver, 2.28% copper

o  At 187.5 m depth 0.5 m of 1.31 g/t gold, 120.0 g/t silver, 8.38% copper   

·    Updated open pit resource to include oxide assays in due course

·    Anomalous molybdenum and tungsten mineralisation also intercepted

·    Sulphide assay results provide verification of the 6% to 8% smelter grades reported from pre-WWII production

·    Samples from holes KXD21-03 through KXD21-05 have been shipped for assay to ALS Laboratories in Nevada, USA

·    A total of 967 m of the 2021 4,500-metre-deep sulphide programme have been completed to date

Ryan McDermott, Chief Executive Officer, said, "We have received the analytical results from core hole KXD21-02 (Table 1 below), the first core hole of the Deep Sulphide drilling program that reached its targeted depth.  I am pleased to announce that the drill hole not only intercepted high-grade copper, silver, gold, lead and zinc in the sulphide zone, but also intersected good copper, gold, silver and zinc mineralization in the oxide zone from within the proposed copper oxide pit boundary, as it passed through the oxide zone into the sulphides. These oxide assays will be included in the resource update later this year. In addition, the drill hole intercepted anomalous molybdenum and tungsten mineralization. Table 1 includes the interval 173.4 metres to 185.9 metres, which was previously reported by the Company as transitioning from 25% to 75% total sulphides identified in the preliminary core logging, shows the increase in metal grades across that zone. The assays show that non-copper bearing sulphides, including pyrite, make up some portion of the total.  The Phoenix team is particularly encouraged by these results, given that this is the first hole of this exploration program.

"KXD21-02 was collared in the near surface oxide deposit and drilled through roughly 170 m of oxide before reaching sulphide mineralization.  Assays within the shallower oxide zone include 5.0 m of 19.3 g/t silver and 0.77% copper, including 1.7 m of 1.1% copper, 1.08% zinc, 2.0 m of 0.78 g/t gold, 64.09 g/t silver, and 0.98% copper that included 0.8 m of 1.10 g/t gold, 80.70 g/t silver, 1.44% copper, and 0.5 m of 258 g/t silver and 1710 ppm tungsten. The mineralized values in the oxide zone occur just inside the proposed oxide pit boundary and will be included in an updated oxide resource calculation in Q4 2021.  Assays within the sulphide zone include 2.0 m of 0.38 g/t gold, 34.38 g/t silver, 2.28% copper, which includes 0.5 m assaying 1.31 g/t gold, 120.0 g/t silver, and 8.38% copper. Other notable intercepts include 0.2 m of 60.7 g/t silver with 3.61% zinc, and 0.2 metres of 68.40 g/t silver with 2.61% lead and 4.50% zinc. KXD21-02 was completed at a depth of 241 m in unmineralized rock. The true thickness of the intercept has not been defined by the single drillhole but will become more defined with additional drilling.

"The mix of metals in the recent assays from KXD21-02 highlights the polymetallic nature of the Empire ore zones. The high-grade nature of the sulphide veins encountered in this drill hole are particularly important as they are verification of the 6% to 8% smelter grades reported from pre-WWII production.  KXD21-02 is the first drill hole* of this year's planned 4,500 metre Deep Sulphide exploration program. Follow-on drilling will use the geological and assay date from this hole for targeting extensions to this known intercept, as well as targeting other similar zones.

"In addition to the elevated copper, gold, silver, lead and zinc values in the KXD21-02 assays, tungsten is present in anomalous concentrations as high as 1710 ppm (0.17%) and molybdenum as high as 1365 ppm (0.14%). These values are consistent with the values anticipated by Nigel Maund in his 2019 Empire Mine report "A REPORT ON A FIELD VISIT MADE TO THE EMPIRE Cu - Au - Ag - (Zn) PROJECT, IDAHO, USA", wherein evidence is presented for an underlying molybdenum/tungsten porphyry at Empire.

"Drill holes KXD21-03 through KXD21-05 have also been completed to date.  Core samples from these drill holes have been shipped for assay to ALS Laboratories in Nevada, USA. We look forward to reporting those results when they become available. Photos of the core can be viewed on the Company's website at www.phoenixcopperlimited.com."  

*(Hole KXD21-01 was abandoned at a depth of 68 metres due to interference with underground workings). 

Table 1 - Empire Drilling Results 1 September 2021

2021 Drilling Programmes

The 2021 drilling plan includes 4,500 metres of diamond core in the Deep Sulphide (967 metres completed to date), 3,000 metres of dual-rotary drilling for hydrological characterisation (2,600 metres completed to date), 2,300 metres of reverse-circulation drilling at Navarre Creek, and 3,000 metres of diamond core at Red Star and the Horseshoe-Whiteknob target.

Qualified Person

The 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.

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 for furthering the permitting process, but as importantly, will be used as the building blocks for the Company's future Environmental, Social, and Corporate Governance (ESG) platform.

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:

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 from late 2022.

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 programmes 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 north west of the Empire Mine proposed open pit, has revealed high grade silver / lead sulphide ore and from three shallow exploration drill holes a NI 43-101 compliant maiden resource of 1.6 million silver equivalent ounces was reported. Additionally, the district includes Navarre Creek, a volcanic hosted, Carlin-type gold discovery which hosts a 6.1 km gold strike length within a 14.48 km² 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 First Cobalt Corporation, Toronto, in respect of one of those properties.

More details on the Company, its assets and its objectives can be found on PXC's website at https://phoenixcopperlimited.com.