Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF) has reported good gold indications from exploratory drilling on its huge acreage at Navarre Creek in Idaho.
Four areas were targeted with intercepts at two said to be “of significance”.
Lehman Creek, in particular, showed a continuous zone of low-grade gold mineralisation intercepted up to a width of 22.9 metres,
Phoenix added the mineralised zone is open along strike and down-dip.
Ryan McDermott, chief executive, said: "Navarre Creek is a vast exploration zone.
“We initially selected four target areas, and it is very encouraging to note that two of those areas have returned mineralization of significance, worthy of further follow-up.
The initial drilling results in Target Area 1 were considered significant enough that we expanded the Navarre Creek claim block to the southwest by an additional 400 acres, bringing the total claim block size to 3,977 acres (16.09 km²).
While the four drill holes tested a relatively small area, we now have a better understanding of the subsurface geology and mineral potential in that specific area.
The activities at Navarre Creek are very much grassroots, very early-stage exploration, not development drilling, and we are satisfied to initially encounter this low-grade mineralization early in the program.
"Given the latest bond funding news, we are clearly focusing our resources on the development of the [Empire] open-pit and will be for the foreseeable future.
At Empire, also in Idaho, McDermott said the recent US$80 million bond issue will enable it to outfit the open pit operation with lower-cost, pre-owned equipment.
“Much of this equipment has already been identified and is currently located within a 550-mile radius of the Empire Mine.”