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RNS Number : 8229A Cornish Metals Inc. 19 August 2024
CORNISH METALS REPORTS FINAL DRILLING RESULTS FROM WIDE FORMATION EXPLORATION
PROGRAMME
Vancouver, August 18, 2024
Cornish Metals Inc. (AIM/TSX-V: CUSN) ("Cornish Metals" or the "Company"), a
mineral exploration and development company focused on advancing its 100%
owned and permitted South Crofty tin project in Cornwall, United Kingdom, is
pleased to report results from the last eight drill holes of the recently
completed 14-hole / 8,993m drilling programme at its Wide Formation target,
located approximately 1km south of the South Crofty mine (Figure 1).
The programme successfully tested the geometry and continuity of tin
mineralisation within a 2,500m by 800m extent of the Wide Formation, located
between and sub parallel to the past producing Great Flat Lode to the south,
and the Dolcoath and South Crofty mines to the north (Figure 8). In addition
to the Wide Formation, drilling also intersected tin mineralisation associated
with the Great Flat Lode and the Great Flat Lode Splay identified earlier in
the programme (see news release dated February 4, 2024
(https://investors.cornishmetals.com/announcements/6187664) ), as well as the
interpreted eastern extension of the Great Condurrow Mine's Main Lode, and
several strongly mineralised steeply dipping zones locally referred to as
'Droppers'.
The numerous mineralised lodes and structures encountered during the programme
have increased overall confidence in the Company's exploration model and
confirm the potential of systematic exploration drilling to make new
discoveries and expand Mineral Resources within the South Crofty mine
permission area and elsewhere within Cornish Metals' extensive mineral rights
in the region.
Highlights
· Wide Formation structure has been confirmed over a strike length of
over 2,500m and a downdip extent of at least 800m, with true thicknesses
ranging from approximately 2m to 10m. The structure remains open at depth and
along strike.
· Notable tin ("Sn") intercepts within the Wide Formation (Figure 5)
include:
o 10.55m grading 0.19% Sn including a zone of 1.49m grading 0.72% Sn in
CB23_012
· Notable tin intercepts from the steeply-dipping, high-grade 'Dropper'
zones identified primarily between the Great Flat Lode and the Wide Formation,
including:
o 1.56m grading 0.76% Sn in CB23_010
o 2.07m grading 0.85% Sn in CB23_012
o 1.97m grading 0.66% Sn in CB23_012
· Notable tin and copper ("Cu") intercepts from a new structure
interpreted as the eastern extension to Great Condurrow Mine's Main Lode
(Figure 7), including:
o 2.11m grading 0.58% Sn and 5.48% Cu in CB23_011
· Table 1 below presents all significant intercepts.
Ken Armstrong, Interim CEO and Director of Cornish Metals, stated: "This
drilling programme has validated the Wide Formation as a new, large-scale,
tin-bearing exploration target that is potentially accessible from the
underground workings at South Crofty. Mineralisation has been traced over a
2,500m extent, up to 800m down dip, and remains open along strike and to
depth. Furthermore, in addition to the earlier discovery of the Great Flat
Lode Splay and new 'Dropper' zones of high-grade tin mineralisation, the
discovery of polymetallic tin and copper mineralisation within the interpreted
extension of the Great Condurrow Mine's Main Lode further demonstrates the
exploration potential of the South Crofty area."
Wide Formation
The Wide Formation represents a high-grade "payshoot" controlled tin target in
the Carn Brea South exploration area, located along the southern boundary of
the South Crofty underground mine permission area. The 14-hole, 8,993m
drilling programme was designed to test the geometry and the continuity of tin
mineralisation within the Wide Formation over an area measuring 2,500m along
strike (northeast to southwest) and 800m downdip to the southeast. The Wide
Formation is characterised by strong tourmaline mineralisation, with local
concentrations of significant cassiterite (tin) mineralisation, typical of all
historically mined tin-bearing structures in the South Crofty area.
Great Flat Lode Splay
Drilling continued to intersect a previously unrecognised splay lode structure
found immediately beneath the Great Flat Lode. Termed the Great Flat Lode
Splay, this mineralised structure varies up to 9m in thickness, and represents
an important new exploration target less than 280m below surface (Table 1 and
accompanying figures).
New Steeply Dipping Tin Zones
As the programme progressed, drilling continued to intersect multiple steeply
dipping high-grade tin zones, mainly located between the Great Flat Lode and
the Wide Formation (Figures 2, 3, 4 and 5). With the increasing intersections
of these new structures, it is possible to confirm continuity of individual
structures between drill holes. From the intercept pattern, an E-W trending
'corridor' has been identified where these structures are interpreted to
occur, representing a priority exploration target to be confirmed with future
drilling. Targets of highest priority are areas where these structures are
interpreted to intersect both the Great Flat Lode and the Wide Formation.
These intersection points represent areas of greater fracturing and therefore
increased potential for high grade tin mineralisation.
Great Condurrow Main Lode
Drill hole CB23_011, intersected significant polymetallic (tin and copper)
mineralisation within the interpreted eastern extension, across the Great
Crosscourse fault, of Great Condurrow Mine's Main Lode. Further drilling will
be necessary to fully quantify the prospectivity of this target and to confirm
the geometry of the zone. However, the location of this intercept proximal to
the Wide Formation and South Crofty mine, is considered significant and
confirms exploration potential of the Carn Brea district.
Hole ID From (m) To (m) Length (m)(1) Sn % Comments
CB23_007 62.67 65.29 2.62 1.27 Great Flat lode
Including 62.67 63.57 0.90 1.46
CB23_007 394.45 395.04 0.59 1.02 Vein
CB23_007 496.67 497.20 0.53 0.70 Vein
CB23_007 574.85 578.89 4.04 0.01 Wide Formation
CB23_008 172.93 174.93 2.00 0.32 Great Flat lode
CB23_008 178.66 179.64 0.98 0.25 Great Flat Lode splay
CB23_008 637.13 644.91 7.78 0.04 Wide Formation
CB23_009 41.63 48.18 6.55 0.01 Great Flat lode
CB23_009 135.08 136.33 1.25 0.64 Quartz haematite structure
Including 135.08 135.58 0.50 1.12
CB23_009 298.74 299.92 1.18 0.45 Quartz haematite structure
Including 298.74 299.37 0.63 0.84
CB23_009 552.41 562.43 10.02 0.03 Wide Formation
CB23_010 124.20 126.40 2.20 0.13 Great Flat Lode
CB23_010 247.44 249.00 1.56 0.76 Quartz haematite structure
Including 247.44 247.84 0.40 2.45
CB23_010 614.46 622.37 7.91 0.05 Wide Formation
Including 618.38 618.74 0.36 0.83
CB23_011(2) 354.16 356.27 2.11 0.58 5.48% Cu Eastern extension of Great Condurrow Main Lode
Including 355.16 355.66 0.50 1.47 9.91% Cu
CB23_012 144.36 148.27 3.91 0.28 Great Flat Lode
Including 146.84 147.44 0.60 0.91
CB23_012 329.5 334.78 5.28 1.06 Altered tourmaline stockwork
Including 331.54 333.71 2.17 1.89
CB23_012 405.71 407.78 2.07 0.85 Quartz haematite structure
Including 405.71 406.65 0.94 1.04
CB23_012 609.91 610.74 0.83 0.52 Quartz haematite structure
CB23_012 615.03 617.00 1.97 0.66 Quartz haematite structure
Including 616.18 617.00 0.82 1.32
CB23_012 684.43 694.98 10.55 0.19 Wide Formation
Including 693.49 694.98 1.49 0.72
Including 693.49 693.99 0.50 2.12
CB23_013 132.11 136.91 4.80 0.07 Wide Formation
CB23_014 140.79 145.30 4.51 0.07 Great Flat Lode
CB23_014 635.60 637.72 2.12 0.06 Wide Formation
Table 1: Selected drilling results from holes 7-14 at the Wide Formation
target.
Note 1: True thickness of down-hole intersections reported are expected to be
approximately 70-98% of the down-hole lengths.
Note 2: Hole CB23_011 was abandoned before reaching the target depth of the
Wide Formation.
Hole ID Hole Length
CB23_007 632.3m
CB23_008 701.7m
CB23_009 610.7m
CB23_010 692.6m
CB23_011 413.5m
CB23_012 764.7m
CB23_013 299.7m
CB23_014 701.2m
Table 2: Drill hole lengths for CB23_007 through to CB23_014, from surface to
end of hole.
GEOLOGY AND MINERALISATION
The geology in the Carn Brea South exploration area is identical to that at
South Crofty, comprising metasediments (locally termed "killas") which overlie
an intrusive granite body.
The mineralisation of the Wide Formation consists predominantly of blue
tourmaline with disseminated and blebby cassiterite, hosted within a siliceous
tourmaline altered granite. The cassiterite mineralisation is found within
tourmaline-quartz veins and tourmaline breccia which overprint the interpreted
earlier blue tourmaline lode structure. No mining has ever been carried out on
the Wide Formation. Stronger cassiterite mineralisation is identified to
concentrate within local, structurally controlled areas within the host
structure. This style of "payshoot" control on cassiterite mineralisation
within a large structure, is common within Cornwall, and has been identified
within both the Great Flat Lode and the lode structures at South Crofty.
The Great Flat Lode Splay (Figure 2) occurs as a blue tourmaline-rich lode
with quartz (occasionally brecciated), hosting disseminated cassiterite
mineralisation. The mineralised structure, which appears to separate away from
the metasediment-granite boundary followed by the Great Flat Lode, is hosted
within strongly altered granite. This structure forms an unmined splay below
the Great Flat Lode, is several meters thick and has an approximate area of
700m by 450m. Based on drilling completed to date, the east-northeast striking
Splay has an approximate dip of 29 degrees towards the southeast and plunges
at approximately 10 degrees towards the east.
The mineralised quartz haematite veins, or droppers, discovered primarily
between the Great Flat Lode and the Wide Formation, individually occur as
steeply dipping quartz veins, which often display in core as a stockwork
textured zone, accompanied by a strong overprinting haematite alteration.
Cassiterite mineralisation is difficult to identify visually due to the
haematite alteration but is detectable with a portable X-ray florescence
instrument ("pXRF") instrument. Based on the limited structural data collected
to date, these structures are interpreted to occur in a broad regional
east-north-east striking zone.
The intercepted eastern extension of Great Condurrow mine's Main Lode (Figure
7), is a steeply dipping chlorite rich vein hosting massive textured
chalcopyrite and sphalerite, which overprint older stringer veinlets hosting
cassiterite. The structure is bounded by weak haematite alteration of the host
granite.
The Wide Formation, Great Flat Lode Splay, Quartz Haematite veins of steeply
dipping high-grade tin mineralisation and the newly discovered eastern
extension to Great Condurrow's Main Lode, warrant further future
exploration.
TECHNICAL INFORMATION
Drilling at Carn Brea South was performed by Priority Drilling Company Ltd.
using two Atlas Copco CS14 Diamond Drill Rigs. Hole construction typically
consisted of HQ (96.1-millimeter ("mm") diameter) to recover 72.8mm diameter
drill core from within the shallower Great Flat mineralised zone, before
reducing to NQ (76-mm diameter) to recover a 48mm diameter drill core when
drilling at depth through the Wide Formation target. Where poor ground
conditions were expected, the hole collared in PQ (96.1-mm diameter), before
reducing through HQ and NQ hole diameters with depth.
On completion, holes were multi-shot surveyed using a Reflex EZ-Trac. Core
recovery was greater than 95%. The core was logged, split via core saw, and
sampled by Cornish Metals personnel. The samples, comprising half core, were
sent for assay at ALS Minerals, Loughrea, Ireland. Sample preparation involved
crushing to 70% less than 2mm, riffle split and pulverised to 85% less than 75
microns. The analytical method used for tin, copper, tungsten, zinc, and
arsenic was X-ray florescence ("XRF") following a lithium borate fusion. A
multi-element 4 Acid Digestion ICP-AES analysis was also carried out to
further characterise the mineralisation and alteration assemblages. Overlimit
assays on silver were carried out using a 3-acid digest and a HCl leach ICP
AES analysis. Comprehensive Quality Assurance / Quality Control programme
using standards, duplicates and blanks was included within the sampling
programme.
This news release has been reviewed and approved by Mr Owen Mihalop, MCSM, BSc
(Hons), MSc, FGS, MIMMM, CEng, Chief Operating Officer for Cornish Metals Inc.
who is the designated Qualified Person under NI 43-101 and the AIM Rules for
Companies and a Competent Person as defined under the JORC Code (2012). Mr.
Mihalop consents to the inclusion in this announcement of the matters based on
his information in the form and context in which it appears.
Figure 1: Map of the drillholes completed on the Wide Formation target.
Figure 2: Section A-A' (looking west) showing CB23_002, CB23_003, CB23_004 and
CB23_008.
Figure 3: Section B-B' (looking west) showing CB23_005, CB23_006 and CB23_007.
Figure 4: Section C-C' (looking west) showing CB23_001 and CB23_009.
Figure 5: Section D-D' (looking west) showing CB23_010, CB23_012 and CB23_014.
Figure 6: Section E-E' (looking west) showing CB23_013.
Figure 7: Section F-F' (looking west) showing CB23_011.
Figure 8: Cross section through Williams Shaft showing Great Flat Lode through
to South Crofty Mine.
ABOUT CORNISH METALS
Cornish Metals is a dual-listed mineral exploration and development company
(AIM and TSX-V: CUSN) focused on advancing the South Crofty high-grade,
underground tin project through to a construction decision, as well as
exploring its additional mineral rights, located in Cornwall, United Kingdom.
· South Crofty is a historical, high-grade, underground tin mine that
started production in 1592 and continued operating until 1998 following over
400 years of continuous production;
· The Project possesses Planning Permission for underground mining
(valid to 2071), to construct new processing facilities and all necessary site
infrastructure, and an Environmental Permit to dewater the mine;
· South Crofty is one of the highest grade tin Mineral Resources
globally and benefits from existing mine infrastructure including multiple
shafts that can be used for future operations;
· The 2024 Preliminary Economic Assessment for South Crofty validates
the Project's potential (see news release dated April 30, 2024
(https://investors.cornishmetals.com/announcements/6315981) and the Technical
Report entitled "South Crofty PEA
(https://cornishmetals.com/site/assets/files/4962/0423037_south_crofty_pea_-_24_may_2024_sedar.pdf)
"):
o US$201 million after-tax NPV(8%) and 29.8% IRR
o 3-year after-tax payback
o 4,700 tonnes average annual tin production in years two through six
o Life of mine all-in sustaining cost of US$13,660 /tonne of payable tin
o Total after-tax cash flow of US$626 million from start of production
· Tin is a Critical Mineral as defined by the UK, American, and
Canadian governments;
· Tin connects almost all electronic and electrical infrastructure,
making it critical to the energy transition - responsible sourcing of critical
minerals and security of supply are key factors in the energy transition and
technology growth;
· Approximately two-thirds of the tin mined today comes from China,
Myanmar and Indonesia;
· There is no primary tin production in Europe or North America;
· South Crofty benefits from strong local community, regional and
national government support.
· Cornish Metals has a growing team of skilled people, local to
Cornwall, and the Project could generate up to 320 direct jobs.
The 2024 Preliminary Economic Assessment for South Crofty is preliminary in
nature and includes inferred mineral resources that are considered too
speculative geologically to have the economic considerations applied to them
that would enable them to be categorised as mineral reserves. There is no
certainty that the 2024 Preliminary Economic Assessment will be realised.
Mineral resources that are not mineral reserves do not have economic
viability.
ON BEHALF OF THE BOARD OF DIRECTORS
"Kenneth A. Armstrong"
Kenneth A. Armstrong P.Geo.
Engage with us directly at our investor hub. Sign up at:
https://investors.cornishmetals.com/link/mPqkle
(https://investors.cornishmetals.com/link/mPqkle)
(https://investors.cornishmetals.com/link/NPwjpr)
For additional information please contact:
Cornish Metals Fawzi Hanano investors@cornishmetals.com (mailto:investors@cornishmetals.com)
Irene Dorsman info@cornishmetals.com (mailto:info@cornishmetals.com)
Tel: +1 (604) 200 6664
SP Angel Corporate Finance LLP Richard Morrison Tel: +44 203 470 0470
(Nominated Adviser & Joint Broker) Charlie Bouverat
Grant Barker
Cavendish Capital Markets Limited Derrick Lee Tel: +44 131 220 6939
(Joint Broker) Neil McDonald
Leif Powis Tel: +44 207 220 0500
Hannam & Partners Matthew Hasson cornish@hannam.partners (mailto:cornish@hannam.partners)
(Financial Adviser) Andrew Chubb Tel: +44 207 907 8500
Jay Ashfield
BlytheRay Tim Blythe cornishmetals@blytheray.com (mailto:cornishmetals@blytheray.com)
(Financial PR) Megan Ray Tel: +44 207 138 3204
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Caution regarding forward looking statements
This news release contains certain "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking statements").
Forward-looking statements include predictions, projections, outlook,
guidance, estimates and forecasts and other statements regarding future plans
and operations, the realisation, cost, timing and extent of mineral resource
or mineral reserve estimates, estimation of commodity prices, currency
exchange rate fluctuations, estimated future exploration expenditures, costs
and timing of the development of new deposits, success of exploration
activities, permitting time lines, requirements for additional capital and the
Company's ability to obtain financing when required and on terms acceptable to
the Company, future or estimated mine life and other activities or
achievements of Cornish Metals, including but not limited to: the balance of
the cash consideration due to Cornish in respect of the sale of the Mactung
and Cantung royalty interests; mineralisation at South Crofty, mine dewatering
and construction requirements; the development, operational and economic
results of the preliminary economic assessment, including cash flows, capital
expenditures, development costs, extraction rates, recovery rates, mining cost
estimates and returns; estimation of mineral resources; statements about the
estimate of mineral resources and production of minerals; magnitude or quality
of mineral deposits; anticipated advancement of the South Crofty project mine
plan; exploration potential and project growth opportunities for the South
Crofty tin project and other Cornwall mineral properties, the Company's
ability to evaluate and develop the South Crofty tin project and other
Cornwall mineral properties, strategic vision of Cornish Metals and
expectations regarding the South Crofty mine, timing and results of projects
mentioned. Forward-looking statements are often, but not always, identified by
the use of words such as "seek", "anticipate", "believe", "plan", "estimate",
"forecast", "expect", "potential", "project", "target", "schedule", "budget"
and "intend" and statements that an event or result "may", "will", "should",
"could", "would" or "might" occur or be achieved and other similar expressions
and includes the negatives thereof. All statements other than statements of
historical fact included in this news release, are forward-looking statements
that involve various risks and uncertainties and there can be no assurance
that such statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such statements.
Forward-looking statements are subject to risks and uncertainties that may
cause actual results to be materially different from those expressed or
implied by such forward-looking statements, including but not limited to:
risks related to receipt of regulatory approvals, risks related to general
economic and market conditions; risks related to the availability of
financing; the timing and content of upcoming work programmes; actual results
of proposed exploration activities; possible variations in Mineral Resources
or grade; outcome of any future feasibility studies; projected dates to
commence mining operations; failure of plant, equipment or processes to
operate as anticipated; accidents, labour disputes, title disputes, claims and
limitations on insurance coverage and other risks of the mining industry;
changes in national and local government regulation of mining operations, tax
rules and regulations. The list is not exhaustive of the factors that may
affect Cornish's forward-looking statements.
Cornish Metals' forward-looking statements are based on the opinions and
estimates of management and reflect their current expectations regarding
future events and operating performance and speak only as of the date such
statements are made. Although the Company has attempted to identify important
factors that could cause actual actions, events or results to differ from
those described in forward- looking statements, there may be other factors
that cause such actions, events or results to differ materially from those
anticipated. There can be no assurance that forward-looking statements will
prove to be accurate and accordingly readers are cautioned not to place undue
reliance on forward-looking statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Cornish Metals does not assume
any obligation to update forward-looking statements if circumstances or
management's beliefs, expectations or opinions should change other than as
required by applicable law.
Caution regarding non-IFRS measures
This news release contains certain terms or performance measures commonly used
in the mining industry that are not defined under International Financial
Reporting Standards ("IFRS"), including "all-in sustaining costs". Non-IFRS
measures do not have any standardized meaning prescribed under IFRS, and
therefore they may not be comparable to similar measures employed by other
companies. The data presented is intended to provide additional information
and should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS and should be read in conjunction
with Cornish Metals' consolidated financial statements and Management
Discussion and Analysis, available on its website and on SEDAR+ at
www.sedarplus.ca.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.
Appendix
"alteration halo" means a border of minerals produced by hydrothermal
alteration in the rock surrounding a vein
"cassiterite" means a tin oxide mineral which is the principal source for tin
metal
"Cu" means Copper
"grade(s)" means the quantity of ore or metal in a specified quantity of rock
"Indicated Mineral Resource" is that part of a Mineral Resource for which
quantity, grade or quality, densities, shape and physical characteristics are
estimated with sufficient confidence to allow the application of mining,
processing, metallurgical, infrastructure, economic, marketing, legal,
environmental, social and governmental factors to support mine planning and
evaluation of the economic viability of the deposit. Geological evidence is
derived from adequately detailed and reliable exploration, sampling and
testing and is sufficient to assume geological and grade or quality continuity
between points of observation. An Indicated Mineral Resource has a lower level
of confidence than that applying to a Measured Mineral Resource and may only
be converted to a probable mineral reserve.
"Inferred Mineral Resource" is that part of a Mineral Resource for which
quantity and grade or quality are estimated on the basis of limited geological
evidence and sampling. Geological evidence is sufficient to imply but not
verify geological and grade or quality continuity. An Inferred Mineral
Resource has a lower level of confidence than that applying to an Indicated
Mineral Resource and must not be converted to a mineral reserve. It is
reasonably expected that the majority of Inferred Mineral Resources could be
upgraded to Indicated Mineral Resources with continued exploration. An
Inferred Mineral Resource is based on limited information and sampling
gathered through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes.
"JORC Code" means the 2012 edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint
Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy,
Australian Institute of Geoscientists and Minerals Council of Australia. The
JORC Code is an acceptable foreign code for purposes of NI 43-101.
"Lodes" means a vein of metal ore in the earth
"MRE" means Mineral Resource Estimate
"kt" means thousand tonnes
"Mt" means million tonnes
"NI 43-101" means National Instrument 43-101 - Standards of Disclosure for
Mineral Projects issued by the Canadian Securities Administrators, which
provides standards of disclosure of scientific and technical information
regarding mineral projects
"Sn" means Tin
"t" means tonnes
"tourmaline" means the crystalline silicate mineral group that occurs
as prismatic crystals in granitic and other rocks
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