REG - Cornish Metals Inc. - POSITIVE PEA RESULTS FOR SOUTH CROFTY TIN PROJECT

Cornish MetalsAnnouncement

01/05/2024 07:15

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RNS Number : 7092M  Cornish Metals Inc.  01 May 2024

CORNISH METALS REPORTS POSITIVE PRELIMINARY ECONOMIC ASSESSMENT RESULTS FOR
SOUTH CROFTY TIN PROJECT

 

Vancouver, April 30, 2024

Cornish Metals Inc. (AIM/TSX-V: CUSN) ("Cornish Metals" or the "Company"), is
pleased to report a positive independent Preliminary Economic Assessment
("PEA") for its 100% owned and permitted South Crofty tin project ("South
Crofty" or the "Project") located in Cornwall, United Kingdom.

The PEA validates South Crofty's economic viability, producing a base case
after-tax Net Present Value ("NPV") of US$201 million and Internal Rate of
Return ("IRR") of 29.8%, and confirms the Project's potential to be a low-cost
and long-life tin mining operation with a current 14-year life of mine
("LOM"). South Crofty is expected to produce a clean, high-grade tin
concentrate and to be an important tin producer in Europe, supplying into
the growing demand for this critical metal that is essential for the energy
transition.

 

Highlights

Ø Attractive project economics and financial metrics

·  US$201 million after-tax NPV(8%) and 29.8% IRR at base case tin price of
US$31,000 /tonne

·  US$235 million after-tax NPV(8%) and 32.8% IRR at the current US$32,625
/tonne LME tin price

·  Capital payback period of 3 years after-tax

·  Total after-tax cash flow of approximately US$626 million from start of
production, peaking at US$82 million in the second year of production

·  Average annual earnings before interest, taxes, depreciation and
amortisation ("EBITDA") of US$83 million and 62.1% EBITDA margin in years 2
through 6

Ø Considerable tin production with upside opportunities

·  49,310 tonnes of tin metal in concentrate produced over a 14-year LOM

·  Average annual tin production of over 4,700 tonnes for years 2 through 6
(~1.6% of global mined tin production)

·  Peak tin production of over 5,000 tonnes in year 4

·  Average LOM processed head grade of 1.83% tin, upgraded from an average
mined grade of 0.94% tin through use of X-Ray Transmission ("XRT") ore sorting
and Dynamic Dense Media Separation ("DMS")

·  Growth opportunities from additional in-mine and near-mine exploration
with the potential to materially extend the mine life and increase production

Ø Permitted Project with low capital intensity and unit costs

·  Pre-production capital requirement of US$177 million

·  Fully permitted project with existing mine infrastructure, mining
permission through 2071 and full planning permission to construct a processing
plant to recover tin concentrate

·  LOM average all-in sustaining cash cost ("AISC") of US$13,661 /tonne of
payable tin, positioning South Crofty as a low cost tin producer

·  Average AISC of US$12,375 /tonne of payable tin for years 2 through 6

Ø Sustainable mining operation with strong ESG credentials

·  Operations will use modern, trackless, mechanised underground mining
methods and latest tin processing technologies

·  Low impact underground operation with paste backfilling of process
tailings into existing, historic mine workings

·  Use of 100% renewable electricity supply and exploring options for
renewable power generation

·  Preference for using local supply chains supporting the local economy and
building on the existing capability and knowledge still present in Cornwall

·  Potential to directly employ up to 320 people with permanent high-skilled
and well-paid jobs and create up to 1,000 indirect jobs

Ø Cornish Metals will host a PEA presentation on 1 May 2024 at 3:00pm London
time. Please register at:
https://www.investormeetcompany.com/cornish-metals-inc/register-investor
(https://www.investormeetcompany.com/cornish-metals-inc/register-investor) .

Ø A technical report prepared in accordance with NI 43-101 will be filed on
SEDAR+ within 45 days of this announcement.

 

Ken Armstrong, Interim CEO and Director of Cornish Metals, stated:
"Congratulations to Cornish Metals' technical team on completion of this
Preliminary Economic Assessment of the South Crofty tin project. This PEA is
an important milestone for Cornish Metals and our goal of bringing responsible
tin mining back to Cornwall and the United Kingdom. South Crofty is a
strategic asset as tin is recognised as a critical metal by the United Kingdom
and other national governments, while there is currently no primary tin
production in Europe or North America.

 

Most often PEAs are completed prior to entering the mine permitting process.
South Crofty has the advantage of having already cleared these hurdles and
benefits from an existing mine permit and process plant construction
permissions as well as existing mining, transportation and renewable energy
infrastructure."

 

Owen Mihalop, COO of Cornish Metals, stated: "The PEA results are compelling
with a post-tax NPV(8%) of $201 million and IRR of about 30% at a tin price of
US$31,000. This represents a strong foundation for further evaluation of the
Project, enabling the Company to move forward with additional preparation work
and progress towards a construction decision, with planned first tin
production in 2027.

 

The low all-in sustaining cost of about US$13,700 per tonne of payable tin is
an important metric and potentially positions the project within the lowest
quartile of the global tin industry cost curve. We believe the opportunities
for mineral resource expansion at South Crofty, and beyond, are significant
and this will come into focus when the current mine dewatering and shaft
refurbishment project is complete by Q3 2025, and new mineral resource
definition and exploration drilling can be undertaken in parallel with a
potential construction decision for the Project."

 

 

 

 PEA Summary Outcomes
 Operations            Mine throughput                                      500 ktpa
                       Processed throughput                                 250 ktpa
                       LOM                                                  14 years
                       Total LOM tonnes mined                               5,955 kt
                       Average mined tin grade                              0.94%
                       Contained tin                                        56,133 t
                       Total LOM tonnes processed                           2,988 kt
                       Average processed tin grade                          1.83%
                       Average tin recovery                                 87.8%
                       Total LOM tin produced                               49,310 t
                       Total LOM copper produced                            3,844 t
                       Total LOM zinc produced                              3,225 t
                       Years 2-6 average annual tin production              4,728 t
 Capital costs         Pre-production                                       US$177 million
                       Post-production                                      US$54 million
 Operating costs       Average LOM net cash cost                            US$12,705 /tonne tin payable
                       Average LOM AISC                                     US$13,661 /tonne tin payable
 Economic assumptions  Tin price                                            US$31,000 /tonne
                       GB£:US$                                              1.25
                       UK corporate tax rate                                25%
 Financials            NPV ((8%)) - Pre-tax / After-tax                     US$264 million / US$201 million
                       IRR - Pre-tax / After-tax                            33.4% / 29.8%
                       Capital payback period After-tax                     3.0 years
                       Total LOM Revenue                                    US$1,563 million
                       Total LOM EBITDA                                     US$806 million
                       After-tax Free Cash Flow (from start of production)  US$626 million
                       Years 2-6 average annual EBITDA                      US$83 million
                       Years 2-6 average annual after-tax Free Cash Flow    US$65 million

Table 1: South Crofty PEA operating and economic summary

Notes:

-   NPV effective as at 1 January 2025;

-   Pre-production capex excludes currently committed items;

-   Project modelled in GB£, values converted to US$ using a flat GB£:US$
rate of 1.25.

-   Financial modelling includes Inferred Resources.

The evaluation at a PEA level of study includes  Indicated and Inferred
blocks and consequently it is not possible to define a Mineral Reserve.  The
PEA is preliminary in nature and includes Inferred Mineral Resources that are
considered too speculative geologically to have economic considerations
applied that would enable them to be categorised as Mineral Reserves. There is
no certainty that the PEA will be realised.

Sensitivity Analysis

A sensitivity analysis was performed on the base case pre-tax NPV to examine
project sensitivity to metal prices, capital and operating costs, grades and
process recoveries.

Figure 1: Pre-tax NPV(8%) sensitivity analysis to various project parameters

South Crofty Project economics are well supported at a range of tin price
assumptions and discount rates. The PEA base-case tin price of US$31,000
/tonne provided by Project Blue, a global consultancy that provides market
intelligence on critical materials for the energy transition, reflects
anticipated supply shortfalls that will drive the market into a deficit from
later this decade.

 After-tax NPV           Commodity Price

  (US$M)
                -20%     -10%  0%    +10%  +20%
 Discount Rate  5%       120   196   272   348   424
                6%       105   175   246   317   387
                8%       78    139   201   263   325
                10%      55    110   164   218   272
                12%      37    85    133   181   229

Table 2: Metal price and discount rate sensitivity analysis

Note: Base case prices used - tin: US$31,000/t, copper: US$8,500/t, zinc:
US$2,500/t

 

Project Description

South Crofty is a former producing tin mine located in the historic central
tin mining district of Cornwall, United Kingdom. The current Project comprises
the former producing South Crofty and Dolcoath mines, which were two of the
most significant mines in the Cornish tin mining district. South Crofty has
over 400 years of operational history until its closure in March 1998. The
Project is wholly owned by Cornish Metals.

 

Figure 2: South Crofty Project location

South Crofty was granted surface and underground development planning
permissions by Cornwall Council, the Local Planning Authority, in 2011 and
2013. The underground mining permissions are valid until 2071 and cover a
project area of 1,490 hectares with a working depth of 1,500 metres below
surface. Cornish Metals also has approximately 7.65 ha (18.9 acres) of surface
ownership that include the area covered by surface planning permission to
construct a processing plant facility.

Current infrastructure at South Crofty will help support any future
development of the Project and includes office and warehouse buildings, the
partially refurbished New Cooks Kitchen ("NCK") shaft, a recently built and
commissioned water treatment plant and a modern decline that extends to a
depth of 120 metres. NCK shaft is one of the five usable main shafts serving
the mine workings, and historically was the main service and hoisting shaft.
More recent infrastructure advancements, including the ongoing refurbishment
and servicing of shafts and construction and operation of the mine water
treatment plant, have been implemented to support access into the historical
mine. Refurbishment of NCK shaft will significantly improve functionality of
the shaft, enable larger equipment to access the mine at an earlier stage in
its re-development and ensure continued safe operations as access to
underground mine workings is regained.

The Project site has excellent transportation and power infrastructure,
including the A30 trunk road located less than 1 km to the north and the
national railway line that borders the site to the south. There are modern
active port facilities at Falmouth approximately 17 km to the south-east. The
Project is located within an industrial area with highly developed power
supply and regional distribution, with two 33 kV overhead power lines which
cross the Project area, and a dedicated 11 kV power supply to NCK shaft.

Economic Benefits to the UK and Local Communities

Cornwall has a strong history of mining with significant mining capability and
knowledge still present in the local workforce. With a local urban population
of approximately 59,000, there are sufficient local human resources to staff
many skilled, unskilled, or partially skilled jobs at a mine.

The PEA indicates that development of South Crofty could provide substantial
economic benefits at the local and national levels, including:

·    During the pre-production mine development period, the Project is
anticipated to generate approximately 175 direct jobs, and additional
employment through contracted construction of surface and underground
facilities;

·    During operations, the mine is expected to directly employ up to 320
people with permanent high-skilled and well-paid jobs;

·    The Project has potential to generate up to 1,000 indirect jobs with
local and national contractors and suppliers of products and services;

·    Using a base case tin price of US$31,000 per tonne, the Project is
estimated to pay total UK corporation taxes of £102 million (approximately
US$127 million) over the LOM. Additional government revenue will be generated
by employee income tax and national insurance contributions;

·    The Company will provide full training and skills development where
necessary in order to maximise employment of local residents at the Project;

·    Environmental benefits through the ongoing treatment of the South
Crofty mine water being discharged into the Red River, having a positive
effect on the quality of the river downstream of the discharge point.

Mineral Resource & Mineralised Material Mined

The Mineral Resource at South Crofty is divided into two areas: the Upper Mine
Mineral Resource, which is predominantly polymetallic tin-copper-zinc
mineralisation hosted in metasedimentary country rock, and the much more
substantial Lower Mine Mineral Resource which is tin-only and hosted
predominantly in granite.

Figure 3: Plan view of South Crofty Resource

Note: Lower Mine (orange), Upper Mine (turquoise), mine development (purple),
and the surface decline (green)

The PEA indicates that approximately 6 million tonnes of mineralised material,
at an average grade of 0.97% SnEq, is amenable to mining, and is based on the
NI 43-101 & JORC (2012) compliant Mineral Resource Estimate ("MRE")
published by Cornish Metals in October 2023 as detailed below:

 South Crofty Summary (JORC 2012) Mineral Resource Estimate
 Area        Classification  Mass   Grade       Contained Tin /

                             (kt)               Tin Equivalent

                                                (kt)
 Lower Mine  Indicated       2,896  1.50% Sn    43.6
             Inferred        2,626  1.42% Sn    37.4
 Upper Mine  Indicated       260    0.99% SnEq  2.6
             Inferred        465    0.91% SnEq  4.2

Table 3: South Crofty Mineral Resource summary

Notes:

1.        The Mineral Resource estimate is reported in accordance with
the requirements of the Joint Ore Reserves Committee of the Australian
Institute of Mining and Metallurgy, the JORC Code (2012).

2.        The Qualified Person for this Mineral Resource Estimate is:
Mr Nicholas Szebor, MCSM, MSc, BSc, CGeol, EurGeol, FGS, of AMC Consultants
(UK) Ltd.

3.        Mineral Resources for the Lower Mine are estimated by
conventional block modelling based on wireframing at 0.4% Sn threshold whilst
honouring lode continuity and by ordinary kriging or inverse distance to the
power of 3 grade interpolation.

4.        Mineral Resources for the Upper Mine are estimated by
conventional 3D block modelling based on wireframing at 0.5% SnEq cut-off
grade and a minimum width of 1.2m and estimated by inverse distance to the
power of 3 grade interpolation.

5.        SnEq is calculated using the formula: SnEq% = Sn% + (Cu% x
0.314) + (Zn% x 0.087). Cornish Metals has used metal prices of
US$24,500/Tonne Sn, US$8,000/Tonne Cu, and US$2,700/Tonne Zn. Assumptions for
process recovery are 88.5% for Sn, 85% for Cu and 70% for Zn.

6.        Cut-off grade was calculated assuming a 24,500 $/t tin price
and an assumed metal recovery of 88.5%

7.        For the purpose of this Mineral Resource Estimate, assays
were capped by lode for the "Lower Mine" between 1.5% Sn and 23% Sn and for
the "Upper Mine" at 6% for Sn, 4% for Cu, and 20% for Zn.

8.        Bulk densities of 2.77 t/m3 and 3.00 t/m3 have been applied
for volume to tonnes conversion for the granite hosted and metasediment
(Killas) hosted Mineral Resources respectively.

9.        Mineral Resources for the Lower Mine have had a minimum
mining width of 1.2m applied using 0% Sn dilution. A 1.2m mining width was
applied to the Upper Mine during wireframing.

10.     Mineral Resources are for the Upper Mine are estimated from near
surface to a depth of approximately 350m and for the Lower Mine from a depth
of approximately 350m to a depth of approximately 870m.

11.     Mineral Resources are classified as Indicated and Inferred based
on drillhole and channel sample distribution and density, interpreted
geological continuity and quality of data.

12.     The Mineral Resources have been depleted for past mining, however,
they contain portions that may not be recoverable pending further engineering
studies.

13.     Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability. The estimate of Mineral Resources may be
materially affected by environmental, permitting, legal, title, taxation,
socio-political, marketing, or other relevant issues.

14.     Effective date 6(th) September 2023.

15.    Numbers may not compute exactly due to rounding.

 

Mining Methods

The South Crofty mine will be accessed via the NCK shaft, which will provide
initial access to the existing mine levels and new stoping areas. NCK shaft
will serve as primary access to the mine for personnel and materials as well
as hoisting of material for transfer to the processing plant, which will be
located adjacent to the decline.

The mine design will utilise existing development where possible, which will
be rehabilitated or slashed for larger equipment, to access production areas.
New internal ramps will be developed providing mechanised access to other
levels. The ramps are driven at -15% grade and 4.0 metres wide by 4.0 metres
high to allow for truck access, ventilation and services. Sections of levels
to be used for services distribution and ventilation will only require
rehabilitation. Lateral access drives will be mined from slashed levels,
haulage ramps and access ramps to stopes and stope access development. Areas
that are being utilised for ventilation, services or limited access will be
rehabilitated only.

Annual mined material of up to approximately 500,000 tonnes (~1,370 tonnes per
day) is planned with  longhole stoping mining methods selected. Sub-level
longhole stoping is the main mining method and is well suited given the
excellent ground conditions, average stope dip of 70 degrees, continuity along
strike and vertically for at least 20 metres. The method also allows for
selectivity of mining where required.

The mine generally consists of blocks of stopes separated by regions of lower
grade material and/or historical workings. Mining direction is generally
extracted in a top-down sequence, retreating along access.

Figure 4: Mining design (isometric long section looking west)

Process Plant

The historic Wheal Jane Concentrator, incorporating key metallurgical
improvements made between 1991 and 1998 as well as results from the Company's
2023 metallurgical test programme, was utilised as the basis for developing
the process plant flowsheet including incorporation of a pre-concentration
plant. The pre-concentration plant consists of XRT ore sorting and DMS for all
+0.85mm material, with fines reporting downstream without pre-concentration.
Pre-concentration reduces the size and cost of the downstream concentrator
considerably and draws on the strengths of both pre-concentration
technologies, XRT being more effective on coarser size fractions and DMS on
the finer size fractions.

 

The 2023 metallurgical test programme tested the suitability of XRT
pre-concentration and DMS and provided representative material to verify
historic production records, operating data and flowsheet. The process plant
will include:

 

·        Underground primary single stage crushing;

·        Two stage secondary crushing and XRT / DMS separation;

·        Tertiary crushing of XRT products to produce nominal -15mm
material for grinding;

·        Open circuit rod mill followed by closed circuit ball mill
with screens;

·        Provision for a flotation section to process polymetallic
material from year 4 onwards;

·        Classification and primary gravity concentration using a
combination of shaking tables and Multi Gravity Separation ("MGS");

·        Regrinding of primary gravity tailings followed by secondary
gravity concentration using a combination of shaking tables and MGS;

·        Tertiary ultrafine gravity separation using a combination of
Falcon "Continuous" Concentrators and MGS, and;

·        Tin Dressing to remove sulphides from gravity concentrates
and filter the final product for shipment for smelting.

Figure 5: South Crofty conceptual process plant layout and external design

Mine Backfill

South Crofty will be a low impact underground mining operation with no surface
tailings storage. Process tailings will be backfilled as a paste into existing
void spaces left by historic mining.

The South Crofty tailings material is a typical gravity/floatation processing
product. The proportion of fines and material size range means that the whole
tailings stream is suitable for paste backfill with samples achieving suitable
strength and target densities for reticulation.

The backfill plant has been designed and sized to meet the requirements of the
mine with the intent of filling existing void space from previous mining prior
to filling new mining voids created by current operations. In-cycle backfill
is not required, and there is no requirement to undercut paste backfilled
areas in the current mine plan.

The mine production is estimated to produce approximately 2.2 million cubic
metres of paste backfill over the LOM.

The backfill plant will be located adjacent to the water treatment plant and
the process plant to allow for shared services and simplified operations. The
backfill plant consists of four main sections: an external thickened tailings
receiving tank; filtration equipment; the cement handling system; and the
mixing system.

Figure 6: South Crofty conceptual backfill plant design.

Production Profile

The production profile at South Crofty is based on annual throughput of
approximately 500,000 tonnes and annual processing of approximately 250,000
tonnes at an average tin grade of 1.83% (1.88% tin-equivalent). LOM tin
production is expected to total 49,310 tonnes (50,320 tonnes of
tin-equivalent), averaging over 4,700 tonnes of tin per year in the first five
years post ramp-up (years 2 to 6) and peaking at over 5,000 tonnes in year 4.

Figure 7: South Crofty indicative production profile

The use of pre-concentration through XRT and DMS at the front end of the
processing plant materially reduces the volume of material processed and
required for backfilling to approximately half of the material mined. The
impact to grades is also significant, with LOM processed tin grades averaging
1.83%, almost double the average mined grade of 0.94% tin. Processed tin
grades in years two through six average above 2%.

Figure 8: South Crofty mined and processed tin grades

Capital and Operating Costs

The pre-production capital cost of the South Crofty project is estimated to be
US$177 million. The LOM sustaining capital is estimated to be a further US$54
million, comprising mine capital development, a process plant upgrade for
polymetallic material in the fourth year from start of production and
processing plant sustaining capex.

                                                                     (US$M)
 Mine development, equipment and pre-production                      9.2
 Mine capitalised operating costs                                    40.5
 Process plant                                                       59.7
 NCK Shaft refurbishment (east side) and underground infrastructure  12.3
 Phase 2 winders purchase and installation                           3.9
 Other surface infrastructure                                        6.9
 Paste backfill plant                                                13.2
 Owners G&A cost                                                     5.8
 Contingency @ 15% (20% for process plant)                           25.7
 Total                                                               177.2

Table 4: South Crofty pre-production capital costs

 

The South Crofty underground mining operation is estimated to have a low total
unit operating cost, averaging US$103 per tonne of mineralised material,
totalling US$611 million over the 14-year LOM.

                                   Unit Cost (US$$/t)  Total LOM Cost (US$M)
 Mining                            64.7                385.1
 Mine pumping and water treatment  2.9                 17.6
 Processing                        24.8                147.9
 G&A                               9.3                 55.1
 Closure cost                      0.9                 5.6
                                                       60
 Total                             102.6               611.3

Table 5: South Crofty operating costs

Average LOM net unit cash costs, inclusive of treatment charges and by-product
credits from copper and zinc are estimated to be US$12,705 per tonne of
payable tin sold. The AISC is estimated at US$13,661 per tonne, potentially
positioning South Crofty within the first quartile of the global tin industry
cost curve.

Cash Flow Generation

South Crofty's estimated low operating costs and high margin tin sales are
expected to support strong after-tax free cash flow generation totalling
approximately US$447 million across the Project (US$626 million from start of
production) and peaking at US$82 million in the second year of production.

Figure 9: South Crofty after-tax free cash flow profile

 

Opportunities and Upside Options

The PEA is based on the latest South Crofty MRE updated in late-2023 that
produced a significant increase in contained tin in the Indicated category of
the lower mine (see 30(th) October 2023 news release
(https://investors.cornishmetals.com/announcements/5403710) ). Additional
in-mine exploration provides the opportunity to extend South Crofty's mine
life beyond the current 14-year LOM. In addition, near-mine exploration at
targets such as the Wide Formation provide further potential to add to the
existing mineral resource base and the scope to increase production rates.

Next Steps

During the remainder of 2024, the Company intends to continue with its
published work programme, including, as a top priority, the simultaneous
dewatering of the mine and refurbishment of New Cooks Kitchen Shaft.

Further technical work is also underway to advance the Project towards a
Feasibility Study, including detailed engineering of the processing plant.
This work will inform discussions with qualified local contractors and
identify suppliers for long lead time items, in order to enable timely
execution of the project construction schedule once a construction decision is
taken.

Qualified Persons

The Qualified Persons for the PEA are Mr Dominic Claridge, FAusIMM, Principal
Mining Engineer (AMC); Mr Nick Szebor, MCSM, CGeol, EurGeol, FGS, General
Manager (Maidenhead, UK) and Principal Geologist (AMC); Mr Mike Hallewell,
FIMMM, FSAIMM, FMES, CEng (Independent Consultant); Mr Barry Balding, PGeo,
EurGeol, Technical Director - Mining Advisory Europe (SLR); Ms Angela Collins,
Dip BA MRTPI, Principal Planner (SLR); Mr Steve Wilson, ACSM, CEng, FIMMM,
Managing Director: Europe (P&C); and Dr Barrie O'Connell, ACSM, FIMMM,
CEng (Independent Consultant). Qualified Persons under National Instrument
43-101 (NI 43-101) and Competent Persons as defined under the JORC Code
(2012).

All QPs have reviewed the technical content of this news release for the South
Crofty deposit and have approved its dissemination.

A Technical Report disclosing the PEA in accordance with the requirements of
NI 43-101 will be prepared by AMC on behalf of Cornish Metals and filed on
SEDAR within 45 days of this news release. Messrs Claridge, Szebor, Hallewell,
Balding, Wilson and O'Connell, and Ms Collins consent to the inclusion in this
announcement of the matters based on their information in the form and context
in which it appears.

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 QP for the Company.

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 has one of the highest grade tin Mineral Resource
globally and benefits from existing mine infrastructure including multiple
shafts that can be used for future operations;

·    Tin is a Critical Mineral as defined by the UK, American, and
Canadian governments;

·    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;

·    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;

·    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.

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/5PmYnP
(https://investors.cornishmetals.com)

 

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         tim.blythe@blytheray.com (mailto:tim.blythe@blytheray.com)

 (Financial PR)                                                         Megan Ray          megan.ray@blytheray.com (mailto:megan.ray@blytheray.com)

                                                                                           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,
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: mineralisation at South Crofty, mine dewatering
and NCK Shaft refurbishment expectations, timing of completion of a technical
report summarising the results of the PEA; the development, operational and
economic results of the PEA, including cash flows, capital expenditures,
development costs, extraction rates, recovery rates, mining cost estimates;
estimation of mineral resources; statements about the estimate of mineral
resources; magnitude or quality of mineral deposits; anticipated advancement
of the South Crofty project mine plan; future operations; the completion and
timing of future development studies; anticipated advancement of mineral
properties or programmes; Cornish Metals' exploration drilling programme,
exploration potential and project growth opportunities for the South Crofty
tin project and other Cornwall mineral properties and the timing thereof,
timing and results of Cornish Metals' feasibility study, 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 the current Feasibility Study; 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.

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 1 - South Crofty summary LOM operating and financial model

 

 

 Appendix 2 - South Crofty simplified concentrator flow sheet

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