Phoenix Copper Limited

Red Star, Horseshoe Mine, Whiteknob Mine Project
Mackay, Idaho

  • Horseshoe and Whiteknob claim blocks historically mined high grade silver, lead, zinc and copper.

    Significant exploration potential at Red Star, maiden inferred resource published in May 2019. Independent report commissioned and published on the "Geologic Mapping and Structural Analysis in the North Pit Region, Mackay Mining District" focusing on the Red Star silver project by David W. Rodgers, Ph.D., Consultant Structural Geologist to Phoenix.

    Highlights

    • Confirmed potential of further high-grade silver and lead at Red Star
    • Likely extension of Red Star through to the historically mined high-grade Horseshoe and White Knob claim blocks
    • Association of high-grade silver mineralisation with the magnetite-bearing skarn formation, thus allowing a magnetic geophysical survey to optimise an ongoing targeted drilling programme

    The historically mined high grade Horseshoe and White Knob claim blocks produced average grades of 204 g/t silver, 19% lead, 6.5% zinc and 0.73% copper. In 2018, Phoenix collected rock chip and channel samples from the Horseshoe Mine claim block. The results of the sampling programme were reported in October 2018 and showed results as high as 9.19% copper, 580 g/tonne silver, and 20% lead. This clearly opens up another significant prospect within the Empire ore system. During the construction of the Empire open pit copper / gold project we will continue to actively explore the Red Star and related area, with a view to early development of this exciting opportunity.

    Following the recent 10-hole drilling programme at Red Star, the Phoenix team evaluated the data from that programme, as well as the existing data from previous work. The drilling results from 2018 and 2020 were very promising, with silver grades as high as 1,100 g/tonne (32 oz/t) and lead grades above 21%. The geological and mineralogical complexity of the project area, coupled with the lack of discernible outcrop, created challenges for effectively targeting additional core holes. As a result, we engaged Dr. David W. Rodgers, a Ph.D. structural geologist and Idaho State University geology professor, to complete high-resolution mapping of the project area and to assess the mineralogical characteristics of the deposit.

    Following detailed surface mapping of the Red Star project area, which included some work southward toward the Empire Mine and northward toward the historic White Knob and Horseshoe Mines, as well as detailed analysis of the Red Star core and drill cuttings, Dr. Rodgers concluded that higher grade silver and lead mineralisation occurs primarily in the contact region between the Mackay Granite formation and the White Knob limestone formation. This is important in that mineralisation does not occur between these two formations elsewhere in the main Empire Mine area.

    Furthermore, Dr. Rodgers concluded that the higher grade silver mineralisation was focused in areas within the magnetite-bearing skarn that had been subjected to a superimposed event, possibly highly acidic, wherein the later-stage silver-bearing fluids leached the magnetite skarn. Because the silver mineralisation only occurs in iron-rich portions of the skarn, which are dominated by magnetite, then those areas near the contact of Mackay Granite and White Knob limestone with magnetite development are thought to be favorable targets for higher grade silver.

    Because the lack of discernible outcrop at Red Star makes it difficult to determine the underlying geology, Dr. Rodgers has recommended the use of ground magnetic surveying, coupled with geologic mapping, to better define future drilling targets. The Company will therefore be scheduling a ground magnetics survey at the Red Star area as soon as weather and ground conditions permit, in order to optimize the next phase of the drilling programme.