Phoenix con­fi­dent its mine is rich in cop­per

Up­graded re­source state­ment should be out later this month

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Acom­pany hop­ing to re­open an old cop­per mine in the US will this month pro­vide in­vestors with an up­dated es­ti­mate for how much easy-to-ac­cess metal is con­tained in its Em­pire project in Idaho.

Phoenix Global Min­ing (PGM:AIM) is con­fi­dent of boost­ing the cur­rent es­ti­mate of 68,200 tonnes of con­tained cop­per for a sec­tion that will be mined from above-ground.

It hopes to pro­duce 7,000 tonnes of cop­per cath­ode ma­te­rial an­nu­ally from 2020. That’s about half as much cop­per as pro­duced each year by Cen­tral Asia Met­als (CAML:AIM), a miner widely re­spected by in­vestors and Phoenix’s man­age­ment.

Chief fi­nan­cial of­fi­cer Richard Wilkins says he wants to fol­low CAML’s busi­ness model, giv­ing Phoenix share­hold­ers a per­cent­age of profit from cop­per pro­duc­tion as div­i­dends.

The bulk of any profit from Em­pire’s open pit pro­duc­tion will be ploughed back into the busi­ness to prove up an un­der­ground sec­tion which the miner is con­vinced will trans­form Phoenix.

There is in­suf­fi­cient ex­plo­ration data at present on the un­der­ground ma­te­rial, so in­vestors should be cau­tious with re­gards to the po­ten­tial value gen­er­a­tion from this part of the mine. How­ever, we note Phoenix has now be­gun to drill this sec­tion.

Wilkins says Phoenix is con­sid­er­ing a po­ten­tial all-share deal to buy ExGen which owns 20% of the Em­pire mine and a 2.5% pro­duc­tion roy­alty. (DC)

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