Results from the latest three holes confirm that mineralisation continues to the north-west and is still open in this direction and at depth, and demonstrates near-surface continuity of mineralisation.
Highlights from reverse circulation drilling include:
- 15 metres at 6.99% zinc, 0.78g/t gold, 157g/t silver, 0.50% copper, and 1.14% lead from 54 metres; and
- 6 metres (EOH) at 7.34% zinc, 2.01g/t gold, 216g/t silver, 0.52% copper, and 1.43% lead from 54 metres.
Earlier in the month results included 8 metres at 12.3% zinc, 2.41g/t gold, 321g/t silver, 0.5% copper and 2.5% lead from 89 metres, or about 12.96g/t gold equivalent.
The Mount Bonnie deposit is located on granted Mining Leases within the Hayes Creek Project in the Pine Creek region of the Northern Territory and is 100% owned by Phoenix Copper.
James Fox, managing director, commented
"The results from the first six holes drilled at Mount Bonnie demonstrate excellent near-surface continuity of mineralisation and contain high grades of zinc, gold and silver.
"It is encouraging to see the growth potential of the deposit beyond the areas drilled by way of an untested lower EM conductor which we will aim to test in the next round of drilling.
"An initial resource at Mount Bonnie will be estimated shortly.
"When combined with the mineral resources already defined at Iron Blow we feel that sufficient contained metal exists at the Hayes Creek project to justify commencement of a scoping study which will aim to demonstrate the economic potential of this project."
Today's high grade reverse circulation drilling results and mineral resource upside should continue the share price and market re-rating in Phoenix Copper, with shares up around 50% in the past month.
With further news flow we remain confident given data from the final six holes, expected before the end of June.
Adding intrigue, of the assays yet to be received, two drill holes intercepted massive sulphides and four were drilled into the oxide alteration zone.
All the results will form a key component of an initial resource estimate at Mount Bonnie to be developed shortly.
Proactive Investors comment:
On Proactive's current estimates, Phoenix Copper could have a gold, silver, zinc resource base in Gold Eq. of around 850,000 ounces of gold grading around 5 to 6 grams per tonne of gold.
Based on this it could potentially be a producer Gold Eq. of around 80,000 to 90,000 ounces per annum with a mile life of 7 to 8 years.
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