Phoenix Copper Limited (now PNX Metals Limited) - September Report 2015

In Hayes Creek, Phoenix 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. We rate Phoenix as a SPECULATIVE BUY, with a base case price target of $0.067/share. We see significant upside in our valuation, and short term price movers will be material progress towards development of Iron Blow and Mt Bonnie, including the completion of a positive scoping study, and positive results from exploration. Phoenix Copper Limited (ASX: PNX) is an Australian based junior explorer and developer concentrating activities on recently acquired projects in the Pine Creek Orogen of the Northern Territory. The key projects are the Iron Blow and Mt Bonnie poly-metallic stratabound deposits, which the Company 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, “Newmarket”), which covers some 1,676km2 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% owned Iron Blow deposit within the Hayes Creek Project in the Pine Creek Orogen of the Northern Territory, Phoenix Copper (“Phoenix” or “the Company”) has one of the highest grade poly-metallic sulphide resources in our universe of ASX-listed companies, with JORC-compliant resources of 2.6Mt grading at 2.4g/t Au, 130g/t Ag, 4.8% Zn, 0.3% Cu and 1% Pb. Sulphide mineralisation starts from within 30m of surface, and resource geometries are amenable to open pit extraction... Download the report for more information.

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