Phoenix Copper upbeat on latest work at Red Star

The AIM-traded firm said Red Star appears to be part of the same mineralised system as the Empire Mine.

It said three holes drilled in 2018 generated a maiden NI 43-101 compliant resource of 1.6 million silver-equivalent ounces, with silver grades as high as 1,100 grams per tonne, lead grades above 21%.

An additional 10 holes were drilled in 2020, and the company commissioned a ground-based magnetics geophysical survey to better understand the nature and orientation of potential mineralisation, and to inform the location and direction of a further drilling programme.

It said on Wednesday that four high-amplitude areas of interest had been identified, including the discovery outcrop that was drilled in 2018 and 2020.

The size and amplitude of the three new areas of interest appeared to be “significantly greater” than that of the discovery outcrop, which generated a maiden resource in 2018, with further north-northeast magnetic anomalies trending from the Red Star discovery outcrop also identified.

Phoenix said the survey results would be used to guide the location and direction of the upcoming drill programme at Red Star, while further survey results were awaited for the Horseshoe-White Knob area to the north, and the Navarre Creek gold project.

“The size and amplitude of the three new anomalies are significantly greater than that of the discovery outcrop which generated the initial maiden resource for Red Star,” said chief executive officer Ryan McDermott.

“Understanding these three new anomalies better is now a priority and will be the focus of additional drilling.

“The survey also identified a trend of lesser magnetic anomalies which roughly parallels the patented claim boundary, trending off the patented claims to the northeast.”

McDermott said that was the same trend that was targeted in 2020 using float and sub-crop geochemistry, and would also be the subject of future drill targeting.

“The Red Star drilling program is planned to expand the NI 43-101 compliant 2018 maiden resource of 103,500 tonnes, which resulted from the 2018 drilling.

“Approximately 3,000 metres of new drilling has been budgeted at Red Star and Horseshoe and is currently being targeted using the recent magnetics data, as well as existing geological and geochemical information.”

Ryan McDermott said that while the company’s team remained “healthy and productive”, Covid-19-related delays in the shipping of parts and materials, as well as contact tracing quarantine requirements, had delayed a number of its contractors, vendors and suppliers.

“We are encouraged by the magnetic survey results received to date and are continuing our exploration programs as quickly as we can.

“We appreciate everyone's patience and look forward to reporting additional information and data as soon as it is received.”

At 1147 BST, shares in Phoenix Copper were up 7.42% at 66.6p.