July 8, 2010
Phoenix Copper has successfully closed a $700,000 capital raising as its purchase of Leigh Creek Copper Mines (LCCM) nears completion.
Set to transform the company from an explorer to commercial producer, the acquisition is on track to be finalised later this month following shareholder approval. Phoenix Copper Managing Director Paul Dowd said the capital raising ticks another important box for the company as it draws closer to becoming a profitable copper explorer and producer.
“We are very happy with the response from our supporters who have helped us achieve our targeted funds for the completion of the purchase of Leigh Creek Copper Mines,” said Mr Dowd.
“The acquisition represents a giant transformation for Phoenix Copper as the new revenue streams from operating mines will enable us to advance the development and commissioning of our other known resources.
“Crucially, it will also bring us closer to our ultimate aim of becoming a self-funding exploration and mining company.”
Phoenix Copper’s acquisition of LCCM will include the company’s copper-producing Mountain of Light asset, as well as the Lorna Doone and Lynda mining leases near Lyndhurst, which offer further potential to build cash flows in the company.
The indicated resources estimate from LCCM’s combined mining leases is more than 20,000 tonnes of contained copper from more than three million tonnes at cut-off grades of between 0.3 to 0.5 per cent.
Revenue from LCCM operations will help Phoenix Copper fund further exploration on its tenements in Burra, Spalding and the Yorke Peninsula, as well as new tenements in the Leigh Creek region acquired as part of the purchase.
“We are currently enjoying exploration success at our Princess Royal tenement near Burra, while we hold high hopes for the town’s famous open pit and our recently acquired line of tenements from Burra to Kapunda,” said Mr Dowd.
“Add to this several geochemical targets, including the Wheal Sarah prospect near Spalding where we are examining excellent assay results for copper and gold, and the future is certainly looking bright.”
Recent drilling results from the company’s Princess Royal tenement include copper findings of 7.2m at 3.01 per cent Cu from 0.6m depth, and gold findings of 3.2m at 0.70 grams per tonne Au from the surface.
The Wheal Sarah prospect has also returned highly promising results from rock chips and soils, including 7.1 per cent copper in old workings about 100m north of Wheal Sarah, and 0.36 grams per tonne of gold in workings 50m west of the historic mine.
Company background
Phoenix Copper listed on the Australian Stock Exchange in February 2008. The company’s primary focus is the discovery of copper and gold within its highly prospective Burra, Spalding and Mongolata projects in the Burra region of South Australia and its Minlaton Project on the Yorke Peninsula near the historic mining town of Moonta. In the mid-1800s, Burra was the world’s second largest copper mine while in 1875 Moonta surpassed Cornwall as the largest copper mining centre in the British Empire.
Further Information: Please contact Paul J Dowd on 08 8364 3188
Issued By Hughes Public Relations: Please contact Kieran Hall on 08 8412 4100
