News: Phoenix Copper to acquire high-grade massive sulphide deposits

Phoenix Copper (ASX:PNX) has signed an agreement to acquire the Iron Blow and Mount Bonnie deposits from Crocodile Gold Corp (TSX:CRK), and to earn up to a 90% interest in the nearby Burnside, Moline and Maud Creek base metals and gold exploration projects.

The projects are located in the Northern Territory.

The Iron Blow and Mount Bonnie assets will be acquired for a nominal $1 and the grant of a royalty in respect of gold and silver production, as part of a broader commitment by Phoenix to spend $4 million over the next four years to earn the 90% interest in Burnside, Moline and Maud Creek.

This represents a first step under a new strategy to identify and acquire new projects offering near term mining and development potential, and significant exploration upside.

The acquisition will comprise 15 mining leases that include the Mount Bonnie high-grade massive sulphide deposit, and an Inferred mineral resource estimate at Iron Blow of 3.17 million tonnes at 2.08g/t gold, 100.9g/t silver, 3.28% zinc, 0.76% lead, and 0.19% copper.

Both the Iron Blow and Mount Bonnie deposits remain open and feature high-grade intercepts, including 48.4 metres at 3.53g/t gold, 429.2g/t silver, 9.58% zinc, 3.37% lead and 0.27% copper from 94.9 metres.
 
The Burnside, Moline and Maud Creek exploration projects host untested drill ready targets in areas of proven gold and under-explored for  base metals.

As part of the acquisition, a capital raising of $316,000 is underway via a share placement via CPS Capital Group at $0.013.

Phoenix continues to evaluate the best options to raise additional funds, including preliminary discussions with other parties.

It is most likely that the funding required to earn the full 90% joint venture interest will be raised in stages over the next few years.

Importantly, all project areas are well positioned in regard to mining infrastructure, rail, road, natural gas and power, and Phoenix is capitalised at a modest $4 million.