Burra Project

(EL 3161, EL 3164, EL 3604, EL 3716, ELA 478/07)

In the Burra Project, the prospect that is currently proving of most interest to Phoenix Copper is its most recently granted exploration licence (EL3549), otherwise known as Princess Royal. At Princess Royal 1,957 FPXRF analyses and 12 rock chip samples were taken on a nominal 400m by 20m grid from Stein Hill to the old Utica copper mine during the June 2009 quarter. This work compliments the 100m by 50m spaced soil sampling undertaken by Copper Range Limited and better defines the 3 km long NNW trending anomaly centered on the old Princess Royal Mine.
Recent sampling by Phoenix Copper has now covered most of the prospective stratigraphy between the old workings at Burra Monster Mine and Princess Royal and, along with better defining the Princess Royal anomaly, has identified two new copper anomalies:

• Stein Hill, a two km long North North West striking anomaly with copper values to 2200ppm centered 1km South of Stein Hill and overlying thin units of Auburn dolomite within siltstones and shales of the Neoproterozoic Saddleworth Formation
• Burra Creek, a 5km long North North West striking anomaly with copper values to 2022ppm in and adjacent to the Burra Creek between Burra and the Princess Royal homestead. This anomaly mainly occurs over alluvium in the centre of the creek and over the adjacent Woolshed Flat Shales of Saddleworth Formation to the east and dolomitic units NMS6 and 7 of the Skillogalee Dolomite to the west.

Phoenix Copper has undertaken a detailed review of Princess Royal data and has entered all identified previous drilling and geochemical information into a database from which a set of sections and 3D block model will be generated in the coming quarter.
It is notable that 588 tonnes @ 27% Cu was mined from Princess Royal in the period 1851 to 1855 and 46 tonnes at 18% Cu from Utica in the period 1867 to 1868.

Previous explorers have drilled 244 holes on the Princess Royal – Utica prospect, however only 16 of these holes were greater than 50m deep.

Previous explorers have generated several estimates of mineralisation remaining in and around the immediate vicinity of the Princess Royal mine. These were estimated before 1989 and predate the JORC code and are not reported here, however, those mineralised estimates remain insitu and are included in reports by:

1. Gold Copper Exploration Ltd 1972: (PIRSA open file report ENV3346)

• Main Lode (thin near vertical vein) + 1500' of strike to 40' depth at varying cut-offs (0.5 - 1% Cu)
• All mineralization" (all rock) over same length/depth but to 60' width, no cut-off

2. SAMIN 1973: (PIRSA open file report ENV3346)

• A diluted mining reserve calculated for an open pit to 50' depth.
• Another on the basis of the further 900' of mineralisation outcropping to the south

3. Adelaide & Wallaroo Fertilizers Ltd 1980: (PIRSA open file report ENV3346)

• Based on a further 196 holes an ore reserve was estimated using a 0.5% Cu cutoff grade.

Historical Project Information

This project is centred on the original Burra copper mine workings — once a mainstay of prosperity in the colony of South Australia — and the township of Burra. However, the area immediately surrounding the Burra open-pit is reserved from the Mining Act (as gazetted in March, 1988) and is therefore unavailable for further exploration. Nevertheless, the tenement package assembled affords a rare opportunity to explore one of the state’s historic mining districts in its entirety.

A highlight of the Burra Project is the under explored northern areas, where there exists the possibility of shallow high-grade ore-deposits existing along the same fault that hosts the old Burra Mine.

Past exploration for extensions and repetitions of the Burra mineralisation has been concentrated along the valley extending northwards from Burra, following the Barrier Highway to Mount Bryan and beyond. Work in this area, known as the Grove Prospect, has included geochemistry, geophysics and some drilling, although it can be concluded that much of the drilling completed to date has been ineffective due to difficulty in drilling through unconsolidated surficial deposits and to complications caused by abundant ground water. Untested targets are ready for immediate drilling, although further work may help to better define the extent and trend of anomalous zones.

Other prospects in the Burra area include the West Burra Mine, which produced limited high-grade ore during the First World War — the strike extension of this mineralisation has never been tested — and the Mullaby Prospect, which has IP anomalies but only one drillhole to date, with no other drillholes within a 6 km radius. Other small copper showings throughout the district attest to the widespread nature of the mineralising processes in the Burra area and add to the expectation that further discoveries can result from systematic district-wide exploration.

The Burra Project also benefits from existing infrastructure and the availability of power, water and road access, providing an opportunity for quick, low cost capital development.
The Burra Project tenements have been selected for their favourable geology, easy accessibility, as well as the large quantity of historic data available. The Company is confident of finding economically viable mineralisation in the Burra region.