What the Analysts Say
WHAT THE ANALYSTS SAY: This week our team of experts run the ruler over Energia Minerals and Phoenix Copper.
Website: www.beerandco.com.au
Energia Minerals (ASX: EMX)
Energia Minerals sold its Carley Bore uranium project to Paladin Resources (ASX: PDN) in June 2015 for 45 million PDN share plus $1.6 million cash.
In June 2014, Energia announced that it had purchased Mining Leases at Gorno in Italy.
Gorno has an Exploration Target of 6 million tonnes to 10 million tonnes at 7 per cent to 10 per cent zinc plus lead.
Gorno has been mined previously, and the mine is fully developed for a quick re‐start, subject to a processing plant being constructed.
The company has applications over uranium at ValVedello and Novazza, and over zinc at Perdil and Salafossa.
High grade assays from drilling at Gorno
In August, Energia announced assay results from its first assay results from the first two holes drilled at Gorno.
For the first hole, within an overall intersection of 13.2 metres grading 10.9 per cent zinc, 2.8 per cent lead and 53 grams per tonne silver, there was a higher grade section with 13.6 per cent zinc, 3.4 per cent lead and 59g/t silver.
Within this intersection, 2 small but very high grade intervals, of 0.8m at 52.7 per cent zinc + lead and 0.7m at 55.2 per cent zinc + lead, were reported.
EMX recently reported further assays from the next five holes. Three of the holes encountered economic mineralisation, and a fourth encountered marginal mineralisation.
Best results included:
9m at 13.4 per cent zinc, 4.2 per cent lead , 75g/t silver; and
4m at 32.3 per cent zinc, 7.9 per cent lead, 74g/t silver.
The project boasts a mining inventory of 8 million tonnes at 6.1 per cent zinc, 1.2 per cent lead and 4g/t silver.
Energia is working on its feasibility study and we expect that the Reserve announced will be similar in zinc and lead grades, but with much higher silver.
EMX share price and the Zinc Price
The EMX share price rose to over six cent following the divestment of Carley Bore and has since softened with the zinc price as LME zinc stocks have increased.
Website: www. breakawayresearch.com
Phoenix Copper Limited (ASX: PNX)
In Hayes Creek, Phoenix Copper has a potentially very robust short term development opportunity in a proven mining district well served by infrastructure.
Mineralisation at the known Iron Blow and Mt Bonnie VMS deposits is high-grade – amongst the highest of any ASX-listed companies with poly-metallic projects, and preliminary metallurgical work on these commonly problematic styles of mineralisation has returned positive results.
The geometry of the mineralisation is amenable to simple open cut mining, with the grades at depth also supporting the future potential for underground operations.
The company is also earning into a highly prospective package of exploration tenements, which contain a number of known mineral occurrences.
Phoenix Copper is an Australia-based junior explorer and developer concentrating activities on recently acquired projects in the Pine Creek Orogen of the Northern Territory.
The company’s key projects are the Iron Blow and Mt Bonnie poly-metallic stratabound deposits, which Phoenix plans to fast track to production, and both of which have had previous shallow oxide mining and are located on granted Mining Licenses.
The advanced projects are backed up by the regional exploration joint venture with TSX-listed Newmarket Gold (TSX-V: NMI), which covers some 1,676 square kilometres of the Pine Creek Orogen south of Darwin.
The company still retains its original South Australian projects, however options are being considered with regards to these.
At the 100 per cent-owned Iron Blow deposit within the Hayes Creek project, Phoenix has one of the highest grade poly-metallic sulphide resources in our universe of ASX-listed companies, with JORC-compliant resources of 2.6 million tonnes grading at 2.4 grams per tonne gold, 130g/t silver, 4.8 per cent zinc, 0.3 per cent copper and 1 per cent lead.
Sulphide mineralisation starts from within 30 metres of surface, and resource geometries are amenable to open pit extraction.
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