They exceeding the company’s expectations based on interpretation of historical information.
The Mount Bonnie prospect is located on granted Mining Leases within the Hayes Creek Project in the Pine Creek region of the Northern Territory and is 100% owned by Phoenix Copper.
Near surface , high – grade zinc , gold and silver sulphide mineralisation
The drill program which was co mpleted in late May comprised twelve RC holes for 1,114m and targeted new mineralised positions and extensions to existing high – grade massive sulphide mineralisation at Mount Bonnie.
MBRC 0 13, MBRC 0 14, and MBRC 0 15 were drilled directly adjacent to, and under the historical open pit (where historic mining ceased when sulphides were encountered) and were d esigned to test a large gap in information between the base of the pit and the nearest drill holes. All three holes intercepted near surface , high – grade massive sulphide mineralisation.
The best intercept in the deposit to date was from MBRC014, which intersected 8m @ 12.3% Zn, 2.41g/t Au, 321g/t Ag, 0.5% Cu, and 2.5% Pb from 89m, individual grades of up to 16.1% Zn, 611g/t Ag and 4.66% Pb were assayed within a 1m interval from 90m demons trating the high – grade, high – value nature of the deposit. In addition the mineralisation in MBRC014 is thicker and of a high er grade than a nearby historic drill hole and the massive sulphide lens is also open at depth, providing considerable scope for fu rther mineralisation.
These assay results from the first three holes drilled at Mount Bonnie are very encouraging as mineralisation has been intercepted beyond the boundaries defined by historic drilling. The overall grades and style of mineralisation, which typically occurs as sphalerite – galena – pyrr hotite rich massive sulphides w ithin a thicker unit of disseminated sulphides, are very similar to th ose observed at the Iron Blow resource, which lie s less than 3km to the north – west. This initial drill program at Mount Bonnie will therefore add significant value and prospectivity to the broader Hayes Creek Project.
Results pending
Assay results are pending from nine of the twelve holes dr illed during the program. These holes test ed for extensions to the north of the existing open pit, and the gold – silver oxide potential along strike from the pit itself . Of the remaining holes, four intercepted massive sulphides, four were drilled into the oxide alteration zone, and one did not reach target depth due to excess water. Assays from these holes are due before the end of June, and will be a key component of an initial resource estimate at Mount Bonnie to be developed later in the year.
Surface and Downhole geophysics
Recently completed fixed loop and downhole electromagnetic ( EM ) surveys, which are capable of detecting the host massive sulphide rocks, have been modelled and provide good evidence to suggest th at mineralisation continues fur ther north than previously envisaged. The models predict two zones of m assive sulpides , one of which (the upper, near surface conductor) corresponds to known mineralisation and the other (the lower, deeper conductor) potentially represents new and untested mineralisation. This concept has not be en tested by any drilling (including during the May 2015 program) and therefore provides further opportunities to extend the mineralised area, which the Company will aim to undertake later in the year.
Phoenix Copper believes that significant potential exists to continue to grow the resource base within the Hayes Creek project area and to discover new VMS deposits. Target stratigraphy can be traced on the surface for at least 10km with numerous additional areas identified within the broader Burnside project to be followed up. A regional exploration program will soon commence to map and sample the prospective horizon, and to ground truth new areas prospective for VMS a nd gold deposits.
