Phoenix Global Mining* (PGM LN) 15.5p, Mkt Cap £6.0m – Consultant geologist highlights the potential of the Empire mine
• Phoenix Global Mining has released details of a report by its Consultant Economic Geologist, Nigel Maund, which highlights the mineral potential of its licences in and around the site of the historic Empire mine in Custer County, Idaho.
• Mr. Maund, who has previously advised Phoenix Global Mining on the Empire mine geology, visited the property in March 2019 in order to review the results of the drilling conducted during 2017 and 2018 has confirmed that “the Empire Mine comprises a world class polymetallic ore system containing tungsten and molybdenum as well as copper, gold, silver and zinc.”
• He also highlights the geological setting of the mineralisation “on a major north south structure with some 5 km of geologic strike” and points out that this “compares with 1 km referred to in the PEA (Preliminary Economic Assessment) on the heap leach SX-EW copper project published by the Company in 2018” as well as pointing to geological similarities between the mineralisation at the Empire mine site and that at the world’s largest porphyry endoskarn deposit at Antamina in Peru..
• The company’s work at Empire has concentrated on developing the near-term cash generating potential of the near-surface oxide mineralisation, however, setting this in a broader context, Mr. Maund’s report expresses a view that “perhaps only 1% to 2% of the ore system has been tested to date Exploration has so far ignored the potential much larger copper/precious metal and base metal sulphide beneath and along strike from the open pit. The potential of this sulphide ore system is of the order of tens of millions of tonnes, and it is almost certainly amenable to underground trackless bulk mining techniques.”
• Phoenix Global Mining’s Chief Executive, Dennis Thomas, confirmed that the company is “preparing an updated measured, indicated and inferred NI 43-101 compliant resource, incorporating all previous drilling results as well as those from the 29,228 feet (8,909 metres) 2018 drilling campaign, the results of which we intend to announce by the end of April."
• Mr Thomas also commented that the consultant’s report endorses “our expansion of the property to the north by staking additional claims over the past 18 months. This has given us a fivefold increase in the strike length of the mineralised zones and the property now covers 8.9 square miles.”
Conclusion: During the recent drilling and field exploration work, there have been hints of a wider mineralised footprint as the exploration extended from the original core area around the old Empire mine into the Red Star, Horseshoe and the recently acquired Windy Devil and Navarre Creek claim blocks, however, the new report, which is available on the company’s website at www.pgmining.com/research provides a more structured and in depth analysis of the emerging potential of the area. The conclusion that perhaps only 1-2% of the overall mineralised system has been tested and that there are possible similarities with Antamina should be of particular interest as the exploration proceeds. We look forward to the updated mineral resource estimate later this month.
*SP Angel acts as Nomad and broker to Phoenix Global Mining