Empire project in Idaho shows new mineralization

Step out drilling to the east and west of the current resource at the Empire mine project in Idaho has intercepted previously unknown mineralization, its owners Phoenix Global Mining (LON: PGM) and ExGen Resources (TSXV: EXG; US-OTC: BXXRF) say.

Empire is a brownfield, past-producing copper, gold, silver, zinc and tungsten underground mine, in which Phoenix owns 80% and ExGen 20%. ExGen also has a 2.5% net smelter return royalty on the project and is one of Phoenix’s largest shareholders, owning about 4.2%.

Highlights from drilling outside the Empire resource area includes 4.6 metres of 1.53% copper in KX18-34, 3.0 metres of 2.85% copper in KX18-34, 13.7 metres of 0.64% copper in KX18-34, 15.2 metres of 0.42% of copper in KX18-16, 12.2 metres of 0.95% copper in KX18-33, and 6.1 metres of 1.09% copper in KX-8.

Empire contains measured resources of 3.29 million tonnes grading 0.53% copper for 17,472 tonnes of contained copper and indicated resources of 7.12 million tonnes grading 0.51% copper for 36,327 tonnes of contained copper. Inferred resources bring 8.96 million tonnes grading 0.41% copper for 36,749 tonnes of contained metal.

Assays from recent infill drilling within the resource boundary to upgrade inferred resources to the measured and indicated category included 68 metres of 0.57% copper in KXD18-02, 5.9 metres of 1.11% copper in KXD18-4, 17.8 metres of 1.19% copper in KXD18-6, and 18.3 metres of 0.68% copper in KX18-31.

The current drill programme, which began in June, is focused on the open-pit oxide resource and does not cover the deeper, higher grade, sulphide potential which the companies are keen to develop.

Drilling is scheduled to continue into October with 7,116 metres of the 12,200 metre annual program completed so far. The results include elevated tungsten, gold and silver values associated with the copper intersections.

The companies have also enlarged their land position to 743 hectares after recently acquiring contiguous claims on the southern end of the Empire block, known as the Granite block.

In April a preliminary economic assessment for an open-pit heap leach solvent extraction and electro-winning mine was completed based on a design capacity of 8,000 tonnes of copper cathode a year.

Phoenix envisions production at the Empire mine in two phases to minimize upfront capital requirements and lead-time to cash flow.

In the first phase, the focus would be an open-pit copper operation to mine the oxide resource (8,000 tonnes of copper cathode annually) with a minimum mine life of ten years. Phase two would extend the mine life and capitalize on the potential the companies see in sulphide mineralization via an underground operation.

The 2018 drill program is designed to upgrade and increase Empire’s oxide reserves, provide samples for ongoing metallurgical test work, geotechnical and hydrological studies, in addition to condemnation drilling for the heap leach pad site, waste dump and plant site. Consultants have been appointed to complete a bankable feasibility study.