Phoenix Copper (ASX:PNX) has drawn the attention of investment...

Phoenix Copper (ASX:PNX) has drawn the attention of investment bank UBS, which yesterday named its IBDH023, the first diamond hole at its Iron Blow deposit in the Northern Territory, as its drill hole of the day.

This is unsurprising given the thick widths of high grade zinc as well as consistent gold grades from the holes.

Diamond hole IBDH023 returned 50.39 metres at 10.12% zinc, 2.66 grams per tonne gold, 283g/t silver, 0.57% copper and 1.39% lead from 155.72 metres including 19.45 metres at 15.48% zinc, 2.65g/t gold, 492g/t silver, 0.56% copper, 2.52% lead from 156.5 metres.

Using UBS long term prices, the wider intersection equates to an in situ value of US$606 per tonne while the higher grade portion equates to $950/t.

Beside the thick upper zone of massive sulphides in the eastern lode, a second lower zone of massive sulphides was intersected between 229 metres and 248 metres downhole and returned:

19 metres at 3.45% zinc, 1.33 g/t gold, 18.2 g/t silver, 0.38% copper, 0.1% lead from 229 metres, including 3 metres at 11.53% zinc, 1.6g/t gold, 22.4g/t silver, 0.3% copper and 0.1% lead from 240 metres.

This western lode intercept is followed by a further 26.5 metres grading 1.5g/t gold from 248 metres.

Phoenix Copper’s drilling program is designed to define new mineralised positions and increase confidence in grade continuity.

Metallurgical test work is underway.

Iron Blow could have potential to become a significant zinc deposit and its promise comes as zinc prices are forecast to rise over the next couple of years.

The deposit currently has a JORC 2014 resource of 203,000 ounces of gold, 125,000 tonnes of zinc, 10.7 million ounces of silver and 23,000 tonnes of lead.