Phoenix Copper (ASX:PNX) has found more zinc, gold and silver from a reverse circulation drilling campaign at the Mount Bonnie deposit in late May, including 13 metres at 3.63% zinc, 0.86g/t gold, 154g/t silver.
With previous drilling results at Mount Bonnie, Phoenix has now defined a sizeable near-surface massive sulphide lens with consistently very high grades of zinc, gold and silver.
However, the Hayes Creek Project in the Pine Creek region of the Northern Territory also includes the Iron Blow deposit, as well as significant exploration potential beyond these two deposits.
Exploration by Phoenix is beginning to unlock the potential of Hayes Creek.
The broadest zone of sulphide mineralisation encountered to date was 26 metres at 3.95% zinc, 1.25g/t gold, 136g/t silver, 0.25% copper, and 1.02% lead from 57 metres.
This included 14 metres at 6.55% zinc, 0.87g/t gold, 245g/t silver, 0.43% copper, and 1.84% lead.
The company would be mightily encouraged by the potential to expand the massive sulphide zone down-dip, where it is untested to the north-west at depths below the limit of current drilling of 75 metres vertical metres below the base of the oxide open pit.
The massive sulphide intersections continue to return consistent high-grade, multi-element mineralisation over a substantial area of Mount Bonnie.
The true thickness of the overall mineralised zone in this area is around 20 metres.
Significantly, gold and silver mineralisation was also intersected outside the boundaries of massive sulphide mineralisation.
Geophysical EM surveying and modelling completed earlier in the year support the interpretation that the massive sulphide zone may extend considerably further at depth.
The massive sulphide zone is also open along strike to the south, where gossan is still exposed in the wall of the oxide open pit.
Managing director of Phoenix Copper, James Fox, commented: "This initial drill program at Mount Bonnie has defined a sizeable near-surface massive sulphide body with consistently high grades of zinc, gold and silver.
"We may have tested less than half the potential of the massive sulphide zone if it continues at depth as predicted by the EM modelling.
Mount Bonnie is therefore a key part of the overall Hayes Creek project which also contains the Iron Blow deposit, as well as significant exploration potential beyond these two deposits.
A drill program to test the lower part of the conductor, below the limit of current drilling, is being planned and will commence once approvals have been granted."
Phoenix's exploration has been successful in defining a sizeable near-surface massive sulphide lens with consistently very high grades of zinc, gold and silver.
Exploration will step up a notch with a likely diamond drill campaign in second half 2015 to test extensions of the massive sulphide zone and test the lower, deeper conductive zone which potentially represents new and untested mineralisation.
Given the results to date, we would not bet against Phoenix significantly increasing the potential resource mineralised zone from drill testing the depth extent of the conductor.
The definition of a JORC Resource estimate provides a significant price catalyst ahead, particularly with a very light market cap of circa $6.7 million.
Mount Bonnie has been a successful campaign and a key part of the overall Hayes Creek project but the project also contains the Iron Blow deposit, as well as significant exploration potential beyond these two deposits, providing further promise.
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