Phoenix Copper 2012: Renewed Vision for Strength and Growth.
2011 was a difficult year for Phoenix Copper as it grappled with the challenges of becoming a producer and developer as well as an explorer. Combining all three facets is rare for a Company of its relatively small size and this differentiation from other Junior Explorers is important to its vision for sustained future success. Buoyed by the support of all those involved in the recent successful capital raising the Company is in a position to capitalise on its exploration projects in the Burra, Spalding, Kapunda and Yorke Peninsula regions, its undervalued production assets in the Leigh Creek region as well as the prevailing market conditions to make 2012 a year of increased strength and growth for Phoenix Copper.
There are two separate drilling programs scheduled for the first half of this year and the Company is keenly anticipating their results. The first will be in Burra North along the identified trend line from the Monster Mine at Burra. Locating an extension or repetition of the Monster Mine ore body at Burra has been part of the Company's vision since it listed on the ASX in February of 2008. The drilling program at Burra North is the next step in striving for that vision. Success at Burra is important to the Company because Burra is the spiritual home of Phoenix Copper; it is the location of its Exploration Office, Burra locals have become valued members of the Company's exploration team and community links built up over four years of operations remain strong. The Company would like its vision of strength and growth to facilitate growth in the local Burra Community and strength in its economy. The Company recognises that the 'emptying of the bush' is a serious issue that will require strong corporate cooperation in order to help reverse this trend.
The second drilling program scheduled for 2012 is on the Company's Yorke Peninsula project. The VTEM airborne geophysical survey was completed at the end of 2011 and the Company is now closely analysing the results in order to establish and distil the most prospective drilling targets. All preliminary exploration indicates that the prospectivity of the project area is high. The tenements the Company has obtained and is exploring is part of the 'Olympic Domain' which was extended to the Yorke Peninsula with the Hillside discovery. The Olympic Domain is rapidly emerging as prospective for hosting multiple large, company-making ore deposits, producing mines with lifespans spanning decades and even centuries. With the inclusion of its recent exploration license application ELA 278/11, Phoenix Copper's total area under tenements and application is the second largest, behind Rex Minerals Limited.
Apart from its exploration work the Company is also seeking to build value for shareholders through significant testwork and studies in an attempt to restore value into its Mountain of Light assets. While actual mining has been suspended the Company continued to maintain a small revenue stream and positive cash flow prior to the Christmas shutdown, as it continues to leach copper from ore that had already been stacked onto pads. General Manager James Fox has been undertaking a detailed feasibility study that will allow the Company to make a better informed decision as to whether restarting mining is feasible. Restarting mining, thus ramping up the production process and increasing its revenue stream is part of the Company's vision for renewed strength and growth in 2012. However, this will only be undertaken when management is satisfied that the risks have been sufficiently reduced and previously encountered problems fully resolved.
Phoenix Copper Annual Report 2011
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Tenement holdings
Phoenix Copper now has nineteen exploration licenses and three mining leases covering an area in excess of 4,400km2. The Exploration Licenses are in the historically significant and highly prospective Burra, Kapunda and Yorke Peninsula regions of South Australia. The mining leases are located further north in the region of Leigh Creek.
| EL No | EL Name | Registered Holder / Applicant | Area km2 |
Application / Grant Date |
| 4226 | Burra Central | Phoenix Copper Limited | 86 | 24/02/09 |
| 3604 | Burra West | Phoenix Copper Limited | 86 | 25/07/06 |
| 3716 | Burra North | Phoenix Copper Limited | 300 | 6/03/07 |
| 4233 | Mongolata | Phoenix Copper Limited | 283 | 10/03/09 |
| 4809 | Princess Royal | Phoenix Copper Limited | 314 | 01/05/06 |
| 4419 | Red Banks | Phoenix Copper Limited | 396 | 21/01/10 |
| 4476 | Hallett Hill | Phoenix Copper Limited | 80 | 27/04/10 |
| 4504 | The Gums | Phoenix Copper Limited | 160 | 31/05/10 |
| 4711 | Burra Creek Plain | Phoenix Copper Limited | ||
| YORKE PENINSULA GROUP | 802 | |||
| 4031 | Minlaton | Wellington Exploration Pty Ltd | 547 | 21/01/08 |
| 4312 | Koolywurtie | Phoenix Copper Limited | 255 | 30/09/09 |
| A278/11 | Weaver Hill | Phoenix Copper Limited | ||
| SPALDING GROUP | 563 | |||
| 3686 | Spalding | Phoenix Copper Limited | 157 | 02/01/07 |
| 4370 | Washpool | Phoenix Copper Limited | 209 | 10/11/09 |
| EUDUNDA GROUP | 820 | |||
| 4291 | Bagot Well | Phoenix Copper Limited | 114 | 05/08/09 |
| 4503 | Australia Plains | Phoenix Copper Limited | 222 | 31/05/10 |
| 4626 | Bagot Well North | Phoenix Copper Limited | 142 | 15/11/05 |
| 3972 | Tarnma | Phoenix Copper Limited | 342 | 05/11/07 |
| Total Els | 4471 | |||
| Area (Ha) | ||||
| LEIGH CREEK GROUP | 572 | |||
| ML5467 | Mountain of Light | Phoenix Copper Limited | 250 | 16/10/1987 |
| ML5741 | lorna Doone | Phoenix Copper Limited | 200 | 03/06/1991 |
| ML5498 | Elsie Adair | Phoenix Copper Limited | 122 | 18/01/1988 |
| TOTAL ALL TENEMENTS | 4477 sq km | |||
