VANCOUVER (miningweekly.com) – Aim-listed copper junior Phoenix Global Mining has formulated an ambitious growth strategy to restart mining at the brownfield Empire copper mine, in Idaho, by 2020.

The company made its debut on the LSE's Aim market late in June, with the aim of bringing the historic mine back into production, just as a copper supply deficit is forecast to emerge.

The project also holds significant potential for exploration upside for copper, gold, silver, zinc and cobalt, Phoenix Global CFO Richard Wilkins told Mining Weekly Online in a recent interview.

Phoenix Global was formed by a group of people with financial backgrounds, having had involvement in several successful, and other not-so-successful, projects over the years. Most recently, Wilkins was involved with Oxus Gold, in Uzbekistan, which he founded with Roger Turner, the current technical officer of Phoenix.

"We were probably too successful for our own good. We produced over half-a-million ounces of gold and 2.5-million ounces of silver, and we took the company from zero to half-a-billion pounds sterling market capitalisation in a short period, prompting the Uzbecks to move in with the tax police, and basically expropriate the project from us," he recalls.

The issue ended up in international arbitration, where it still languishes unresolved today.

Wilkins explained that, back in 2013, he and Turner decided to start over again, but, burned by their previous endeavour, vowed to shop for a project in a more sensible jurisdiction, "where we are not going to get 'stolen', if you like".

The mining entrepreneurs turned to current CEO Dennis Thomas, who they had known for years. Thomas had evaluated dozens of projects worldwide. Between them, they ended up selecting the Empire project, located in a significant and historic mining camp. "Given our history, I don't think we can be at a better address anywhere in the world," Wilkins recounted enthusiastically.

BROWNFIELD DEVELOPMENT
Phoenix Global has started work on a Canadian National Instrument 43-101-compliant prefeasibility study, which is slated for publication in the second quarter of 2018.

With an 80% stake in the Empire project, the company is targeting an initial phase producing 7 000 t/y of copper cathode from the shallow openpittable oxide resource, with a ten-year mine life. The operation will employ a straightforward solvent extraction-electrowinning plant, and metallurgical testing as confirmed recoveries of between 80% and 90% for oxide ore.

According to Thomas, Empire produced a total of 694 000 t copper between 1901 and 1942, at a head grade of 3.64% copper, through underground mine workings.

Empire currently holds a Joint Ore Reserves Committee- (Jorc-) compliant resource of 12.8-million tonnes grading 0.53% copper, for 68 200 t of contained red metal. The company recently undertook a 28-hole reverse-circulation and diamond drilling campaign to increase the oxide resource along strike.

Phoenix Global reported "impressive" results, with the final batch results from its AP Pit showing 6.1 m at 2.08% copper, 79.18 g/t silver and 2.48 g/t gold. It also reported 24.4 m at 1.06% copper, 34.82 g/t silver and 0.17 g/t gold, as well as 29 m at 0.88% copper, 46.84 g/t silver and 0.29 g/t gold.

However, Wilkins says he believes that, despite copper ore outcropping at surface, the current resource barely scratches the surface and could possibly account for only 5% of the entire mineralised system.

The team has identified a significant opportunity to extend the resource further by mining the deeper, higher-grade sulphide zone, where grades of up to 11.4% copper have been encountered. There is also excellent potential for silver, gold and tungsten, Thomas advised.

The recent drilling also saw the completion of the first two diamond drill holes targeting the deeper sulphides at a depth of 314 m underlying the AP Pit.

Previous production reached as deep as 335 m, from 11 adits. Workings were even developed on visible high-sulphide lodes. “Results to date demonstrate that we have a stronger average grade than the current Jorc resource."

Located in the politically stable jurisdiction of Idaho, which was ranked No 4 in the Fraser Institute Annual Survey of Mining Companies, Phoenix Global has already spent more than $7-million on the project so far.

Thomas is extremely bullish on copper, pointing out that Rio Tinto had recently forecast a copper deficit to emerge by 2020, dovetailing with the company's plans to restart the mine by then.

"Copper demand is driven by the global gross domestic product growth and, domestically, US President Donald Trump has committed to reinvigorating America’s mining industry, while boosting infrastructure spending by $1-trillion. Recent supply side issues from the world's largest copper mines, including Escondida and Grasberg, remain unresolved, adding to the metal's strong fundamentals," he said.

"The Empire mine is a low-risk development boasting strong economic and production fundamentals and significant discovery opportunity," Wilkins stated.

COBALT OPPORTUNITY
Meanwhile, Phoenix has registered a wholly owned subsidiary, Borah Resources, to develop two copper/cobalt properties on the historic 'Idaho Copper Belt', 210 km north of the Empire mine.

They are the Bighorn property, comprising 29 unpatented claims over 235 ha; and the Redcastle property, comprising 30 unpatented claims over 243 ha.

Prompted by a 150% year-on-year price increase for cobalt, on the back of rising lithium-ion battery production and the tightening supply of raw materials, specifically battery chemicals, and the political instability in the metal's largest producer, the Democratic Republic of Congo, Phoenix jumped at the chance to capitalise on the cobalt upside.

Borah has staked the claims near previously producing mines near the town of Cobalt, Idaho. These claims are close to other projects being developed by Canadian juniors, Thomas explains.

"The properties provide Phoenix with a broader commodity portfolio and exposure to two high-demand metals. A budget has been allocated to Borah Resources for fieldwork, which is already under way and which will assess the areas that justify drilling after the coming winter.

"We now have a solid foothold on both the north and south ends of the Cobalt Belt and Phoenix hopes to secure other cobalt opportunities in Idaho, alongside our development work focused on recommencing mining at the Empire copper mine in 2020," Thomas states.