Phoenix Copper Limited / Ticker: PXC / Sector: Mining

10 November 2022

Phoenix Copper Limited

('Phoenix' or the 'Company')

Initial Results of Metallurgical Core Drilling at the Empire Open Pit Copper Project, Idaho 

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 report the assay results from the first three core holes at its Empire Open Pit Copper Project, Custer County, Idaho, USA. 1,500 metres of core is being drilled with the core samples and technical information from these holes being used for further metallurgical testing, geotechnical studies, and geological modeling.

Significant drill results from the first three holes are listed in Table 1, including the following highlights:

Hole KXD21-01

·    21.3 metres ('m') of 1.99% copper, 38.9 grammes / tonne ('g/t') silver, and 358.7 ppm molybdenum starting at a depth of 17.7 m

o  Including 13.4 m of 2.96% copper, 54.3 g/t silver, and 436.5 ppm molybdenum from 20.4 m

o  And including 9.1 m of 4.00% copper, 57.5 g/t silver, and 535.4 ppm molybdenum from 24.7 m

·    11.3 m of 1.09% copper and 22.1 g/t silver starting at a depth of 53.3 m

o  Including 1.8 m of 1.23% copper and 16.5 g/t silver from 53.3 m

o  And including 1.8 m of 2.31% copper and 41.4 g/t silver from 56.7 m

o  And including 1.2 m of 3.52% copper and 75.0 g/t silver from 61.9 m

Hole KXD21-02

·    9.1 m of 0.27% copper, 19.6 g/t silver, 246.6 ppm molybdenum, and 255.0 ppm tungsten starting at a depth of 9.8 m

o  Including 3.0 m of 0.20% copper, 43.3 g/t silver and 350 ppm tungsten from 9.8 m

Hole KXD21-03

·    7.3 m of 2.17% copper, 0.195 g/t gold, 20.2 g/t silver, and 0.94% zinc starting at the collar

o  Including 3.4 m of 4.08% copper, 0.345 g/t gold, 24.2 g/t silver, and 1.86% zinc from 4.0 m

·    1.5 m of 3.16% copper, 0.350 g/t gold, and 16.2 g/t silver starting at a depth of 10.1 m

·    12.2 m of 1.05% copper, 0.339 g/t gold, and 14.5 g/t silver starting at a depth of 15.2m

o  Including 6.7 m of 1.26% copper and 0.519 g/t gold from 19.2m

·    18.9 m of 0.79% copper, 0.316 g/t gold, and 14.3 g/t silver starting at a depth of 29.0 m

o  Including 13.7 m of 0.98% copper, 0.349 g/t gold, and 17.1 g/t silver from 32.6m

The 2022 metallurgical exploration programme was designed to collect material from each of the metallurgical domains to evaluate their variability within the Empire Open Pit while improving the understanding of the geologic and structural controls on mineralisation. The results confirmed the continuity of mineralisation within the Empire Open Pit, and which appears along structures striking northeast and dipping steeply to the southeast. The Phoenix team is assessing these results for inclusion in updated geologic models and is targeting additional drilling.

Ryan McDermott, Chief Executive Officer, said, "We are pleased to announce the assays from the first three core holes of the 2022 Empire metallurgical drilling program, which represent 635.5 feet (193 metres) of a planned 5,000 feet (1,524 metres) program.  Drilling commenced in early June and assay certificates for the first three drill holes were received in early November. The Phoenix team targeted specific zones within the resource in order to collect samples that are representative of the geology and grade characteristics of the deposit as a whole. The samples will be used in the additional testing of ammonium thiosulfate as a recovery agent for copper, gold, and silver. The results of these studies may enable us to bring forward production of gold and silver, currently scheduled as a second phase of the Open Pit project.  

"The copper, gold, and silver values in the drilling, as well as the length of the mineralized intercepts, are robust and may add further material to the open pit resources.  KDX22-01 showed 21.3 metres of 1.99% copper, which include 9.1 metres of 4.00% copper and 57.5 g/t silver, as well as 11.3 metres of 1.09% copper, including 1.2 metres of 3.52% and 75 g/t silver.  KXD22-03 contained 7.3 metres of 2.17% copper, which included 3.4 metres of 4.08% copper and 0.345 g/t gold, as well as 12.2 metres containing 1.05% copper and 0.339 g/t gold. Drill holes KDX22-01 to KDX22-03 were completed to 223.5 feet (68 metres), 200 feet (61 metres), and 212 feet (64.6 metres) in depth, respectively, placing them within the proposed open pit. 

"The metallurgical drilling program is progressing as planned with approximately 3,479 feet (1,060 metres) completed since June. However, assay results are taking longer than originally anticipated due to laboratory backlog.

"In addition to the core drilling, we are pleased to announce that a reverse-circulation drill rig is scheduled to arrive onsite this week and will begin drilling in the North Pit/Red Star area on targets developed from ground magnetic surveys conducted in 2021. This rig is suitable for winter drilling and we anticipate that despite its delayed arrival, we will complete the planned drilling program at North Pit/Red Star over the coming weeks.

"We look forward to reporting additional assays from this year's drilling programs as they become available and appreciate everyone's patience while the assay laboratory makes headway on the sample backlog."

Table 1 - Empire Drilling Results November 7, 2022

* Length along hole (not equivalent to true width).

Assay Quality Control

All PQ and HQ drill core is logged by Konnex personnel at Phoenix's drill core facility located in Mackay, Idaho, USA. The drill core is then sawed in half. One half is sent to a commercial laboratory for assaying, and the other half is kept for future reference. A strict QA/QC programme is in place by integrating duplicates, blanks and certified reference standards into the core sample sequence.

Qualified Person

The foregoing technical information in this news release has been reviewed and verified by Zachary J. Black, SME-RM, General Manager. Mr. Black is a resource geologist with more than 17 years of domestic and international experience in the mining and construction industries. Mr. Black has a degree in Geological Engineering from the University of Nevada, Reno and is a registered member of the Society for Mining, Metallurgy, and Exploration, Inc. He is a Qualified Person under the AIM Rules. Mr. Black 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 ongoing Environmental, Social, and Corporate Governance (ESG) platform, overseen by the Company's ESG & Sustainability Committee.

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 a USA focused, base and precious metals emerging producer and exploration company, initially targeting copper 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 our extensive drill programs 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 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 resource of 103,000 tonnes containing 173.4 g/tonne silver, 0.85 g/tonne 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 14.48 sq km 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 Electra Battery Materials (formerly First Cobalt Corporation), 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/