Earn-in Agreement Renewed for Redcastle

Phoenix Copper Limited / Ticker: PXC / Sector: Mining 

25 July 2024

Phoenix Copper Limited

("Phoenix" or the "Company")

Earn-in Agreement Renewed with Electra Battery Materials on the Redcastle Cobalt Property

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 announce that it has renewed its earn-in agreement (the "Agreement") with Electra Battery Materials ("Electra") (TSX.V: ELBM, NASDAQ: ELBM), in respect of the Company's Redcastle cobalt property ("Redcastle") on the Idaho Cobalt Belt. The original agreement was executed on May 21, 2021.

The Company's cobalt holdings can be viewed on the Phoenix website at  https://phoenixcopperlimited.com.

Highlights

·      Phoenix has signed an amendment to the Redcastle Property Agreement to extend its two main exploration expenditure commitments by two years, to 2026 and 2028 respectively.

·      The amendment will require an investment of US$1.5M into any combination of exploration, development and related work by the third anniversary date of May 21, 2026; with an additional required investment of US$1.5M into any combination of the above works by the fifth anniversary date of May 21, 2028.

·      Electra's 2023 field programme discovered a previously unknown copper surface showing on an unexplored boundary area of the Redcastle Agreement claims.

·      A follow-up field reconnaissance programme is being considered on the heels of the amended Redcastle Agreement, subject to financing.

·      The Company's Bighorn cobalt property on the Idaho Cobalt Belt does not form part of the Agreement.

Ryan McDermott, Chief Executive Officer, commented: "We are pleased to be continuing our collaboration with Electra through the extension of this agreement. We believe Electra is well-positioned to further advance the Redcastle property's potential, and we look forward to working with the Electra team as that potential is realized."

Phoenix's Redcastle claim block is located in Lemhi County, situated within the southern region of the Idaho Cobalt Belt, approximately 110 miles north of the Empire Open-Pit Mine Project. Covering 600 acres of unpatented mining claims, the claims block shares a border with Electra Battery Material's Iron Creek property. At present, the Iron Creek Mine hosts Indicated cobalt and copper Mineral Resources totaling 4.5 million tonnes, with cobalt grading at 0.19% for 18.4 million pounds and copper grading at 0.73% for 71.5 million pounds. Additionally, Inferred copper and cobalt Mineral Resources stand at 1.2 million tonnes, with cobalt at 0.08% for 2.1 million pounds and copper at 1.34% for 36.5 million pounds.

Electra Battery Materials, listed on both TSX and NASDAQ with a market capitalisation of approximately US$25.6 million, has conducted drilling activities at Iron Creek since 2018, utilising both surface and underground approaches. With their established expertise, workforce, and local infrastructure, they are well-suited to lead exploration efforts at our adjacent Redcastle property. This agreement facilitates the advancement of Redcastle's development at no expense to Phoenix, allowing us to focus on our primary endeavour, the Empire Mine in Custer County.

Trent Mell, First Cobalt Chief Executive Officer, commented: "Extending this agreement preserves the opportunity to advance the potential of the Redcastle site, and we are in the process updating our exploration permit, allowing us to explore for up to 10 years beginning in 2025. Although Electra's primary focus remains completing our cobalt refinery project in Ontario, given the potential for the Idaho Cobalt Belt to be an important source of critical minerals needed for North America's developing EV battery supply chain, we look forward to re-launching field exploration work and exploration drilling programs and continuing our collaboration with Phoenix."

Redcastle and Iron Creek Cobalt - Lemhi County, Idaho

The Redcastle property is located in the southern half of the Idaho Cobalt Belt in Lemhi County approximately 110 miles north of the Empire Mine.  The property consists of 600-acres of unpatented mining claims situated due east, and sharing a common border with, Electra's Iron Creek Cobalt Project.  

Electra's Idaho properties consist of mining patents and exploration claims over an area of 73.15 km², including the Iron Creek Project, and cover the strike extent of strata hosting the cobalt-copper sulphide mineralisation. Iron Creek is one of several cobalt-copper resources and prospects within the Idaho Cobalt Belt, a prospective mineralised system that contains the largest primary cobalt resources in the United States, according to the U.S. Geological Survey. Historical underground development at Iron Creek includes 600 metres of underground drifting from three adits. In March 2023, Electra released an updated Mineral Resources Estimate for the Iron Creek Project. A road connects Iron Creek to a state highway and the nearby towns of Challis and Salmon, and the Redcastle Property is located east adjacent to Electra's Iron Creek Property.  More information is available at https://electrabmc.com/projects/iron-creek/

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:

Notes

Phoenix Copper Limited is an emerging producer and exploration company specialising in base and precious metals, with an initial focus on copper, gold, and silver extraction from an open-pit mining operation within the United States.

Located in the historic Alder Creek mining district near Mackay, Idaho, Phoenix's flagship asset is the Empire Mine, in which the Company holds an 80% ownership stake. The historic Empire underground mine, located beneath the surface of the Company's proposed open pit, boasts a rich history of producing high-grade copper, gold, silver, zinc, and tungsten.

Since 2017, Phoenix has executed extensive drilling initiatives, resulting in an expansion of the Empire Open-Pit resource by over 200%. In May 2024 the Company published its inaugural mineral reserve statement for the Empire Open-Pit Mine. Proven and Probable mineral reserves are 10.1 million tonnes containing 109,487,970 lbs of copper, 104,000 ounces of gold and 4,654,400 ounces of silver. This reserve was estimated using assay data from 485 drill holes, extensive geological modelling, metallurgical recovery test work, geotechnical evaluation, and mine design. The reserve represents a combined 66,467 tonnes of copper equivalent metal.

In addition to the Empire Mine, Phoenix's holdings in the district also encompass the Horseshoe, White Knob, and Blue Bird Mines, all of which have been producers of copper, gold, silver, zinc, lead, and tungsten from underground operations, a new high-grade silver and lead orebody at Red Star, and the Navarre Creek gold exploration project, which was first drilled in 2023. The Company's land package at Empire spans 8,434 acres (34 sq km).

Phoenix also owns two cobalt properties situated along the Idaho Cobalt Belt to the north of Empire. An Earn-In Agreement has been established concerning one of these 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/