REG - Cornish Metals Inc. - SOUTH CROFTY PROJECT UPDATE

Cornish MetalsAnnouncement

08/11/2022 07:00

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RNS Number : 6021F  Cornish Metals Inc.  08 November 2022

 

CORNISH METALS PROVIDES SOUTH CROFTY PROJECT UPDATE

 

Vancouver, November 7, 2022

Cornish Metals Inc. (TSX-V/AIM: CUSN) ("Cornish Metals" or the "Company"), is
a dual-listed company focused on advancing the past producing South Crofty
high-grade, underground tin project through a parallel mine dewatering
programme, delivery of a Feasibility Study and exploring its additional
mineral rights, all located in Cornwall, South West England.

Following the £40.5 million financing completed in May 2022, the Company is
pleased to provide the following operations update on the South Crofty tin
project. Photographs of some of the activities underway can be viewed here
(https://cornishmetals.com/projects/uk/south-crofty-project-update-photos/) .

Richard Williams, CEO of Cornish Metals Inc, commented; "It is wonderful to
see the level of activity underway at South Crofty, as we progress through the
construction of the Water Treatment Plant, and undertake a metallurgical
sample drill programme. We are now in an exciting period for the Company and
our stakeholders. It is inspiring to see the pride and dedication that our
team displays, knowing that they are contributing to the success of a project
that means a lot to the local community and a restart of the Cornish tin
industry."

Water Treatment Plant Construction (WTP)

·    The WTP construction is on track for planned commissioning in June
2023.

·    Detailed design of the WTP is now 75% complete.

·    The current cost estimate for the WTP is between £6.5 to £7.0
million.

·    The foundation slab for the WTP has been designed, the shuttering and
steel reinforcement complete and concrete pouring has commenced.

·    The treated water discharge duct from the WTP to Middle Engine Shaft
is complete.

·    All key equipment suppliers have been engaged, contracts awarded and
delivery dates assigned.

·    Six large steel clarifier tanks are being fabricated locally with
delivery and installation expected to commence in December 2022.

·    Ongoing water treatment studies have further optimised the treatment
process, resulting in a reduction in reagent consumption, an improvement to
metal and suspended solids recovery, and an expected reduction in operating
costs.

Mine Dewatering

·    The two submersible pumps purchased in 2018 have been checked and
tested, both of which are in good working order.

·    Pump installation into New Cooks Kitchen (NCK) shaft is planned to
commence this month, with both pumps expected to be installed to approximately
370 metres depth below surface by the end of February 2023.

·    Sections of the NCK shaft headframe have been removed to prepare for
pump installation into the shaft.

·    Pump and pipe handling infrastructure has been installed and tested.

·    All steel pipes required for pumping have been delivered to site and
ready for installation.

·    A new single drum winder has been ordered, for delivery in Q3 2023,
to enable the NCK shaft re-accessing.

Metallurgical Drilling

·    Three diamond drill rigs are currently in use at North Pool Zone
(drilling from surface into the eastern section of the South Crofty Mineral
Resource), No. 4 and No. 8 Lodes (drilling from surface into the central
section), and Roskear / Dolcoath areas (drilling from underground in the
western decline into the western section).

·    Drilling to the North Pool Zone is nearing completion of the
directional drilling phase, and sample collection for metallurgical testwork
is expected this month.

·    Multiple wedged drillholes have successfully drilled into No. 4 and
No. 8 Lodes, with intersects into No. 8 Lode being wider than anticipated,
meaning less drilling will be required for sample collection from this
mineralised structure. Visually, drillholes into both structures display good
cassiterite (tin) mineralisation. At current rates, completion of the drilling
into No. 4 and No. 8 Lodes is expected before year end.

·    The underground drill rig targeting the Roskear section of the
Mineral Resource has completed the directional phase of drilling and samples
are currently being collected for the metallurgical studies. Encouraging
visible tin mineralisation has been encountered, in line with expectations for
this area of the South Crofty Mineral Resource.

Feasibility Study (FS)

·    Initial work on the FS is underway, including hydrogeology,
geotechnical studies, ventilation, shaft refurbishment, and initial groundwork
investigations for the process plant foundations.

·    A metallurgical testwork programme has been developed, including ore
sorting, process design confirmation and paste backfill.

Health and Safety

·    Zero lost time incidents to date.

·    A new Health and Safety Officer has been employed.

·    A new underground refuge chamber has been constructed and
commissioned.

·    New self-contained Self-Rescuers have been purchased and
commissioned.

·    The Company is undertaking comprehensive internal and external
competency training programmes with all new and existing staff.

·    Two new mine rescue teams have been recruited, with training starting
this month.

·    New ventilation ducting has been installed in the western decline in
support of the underground drill progamme.

·    WiFi connections have been installed underground to provide improved
communications with surface.

Community Engagement

·    The most recent Community Meeting was held on 8 September, 2022 at
Heartlands World Heritage Mining Site.

·    The local community continues to be very supportive of plans to
progress South Crofty towards production.  The full video of the meeting can
be accessed here (https://youtu.be/Y362UoWLqCQ) .

·    The Company continues to provide ongoing support and funding to local
charities, sports teams and also to minerals industry related education by
providing transport and entrance fees for local primary school trips to the
Geevor Tin Mine museum.

Workforce

·    The Company has expanded its staff levels considerably since closing
the May financing, and now has over thirty full-time employees on site, as
well as numerous contractors.

·    Senior staff positions, including Project Manager, Senior Project
Engineer, and Feasibility Study Manager, have been filled.

Local and National Content

·    The Company is extremely pleased to find that many services and
skills required for the current work at South Crofty are available within
Cornwall and UK.

·    A list of local and national suppliers to the South Crofty project
can be found here
(https://cornishmetals.com/site/assets/files/4962/service_providers.pdf) .

 

ABOUT CORNISH METALS

The South Crofty project covers the former producing South Crofty tin mine
located beneath the towns of Pool and Camborne, Cornwall. South Crofty mine
closed in 1998 following over 400 years of continuous production. Since
acquiring the project in 2016, Cornish Metals has completed and published
maiden NI 43-101 Mineral Resources for South Crofty using the vast archive of
historical production data and more recent drilling completed between 2007 and
2013. Additionally, Cornish Metals has undertaken extensive pilot-scale water
treatment trials and successfully applied for and received the necessary
environmental permits to abstract, treat and discharge mine water in order to
dewater the mine. Planning permissions for the operation of the mine and
re-development of the surface facilities have been secured and construction of
the water treatment plant foundations commenced. The dewatering pumps,
variable speed drives and new high-voltage power supply have been delivered to
site.

 

An updated Mineral Resource was completed in June 2021 as summarised below:

 

 South Crofty Summary (JORC 2012) Mineral Resource Estimate
 Area        Classification  Mass        ('000 tonnes)         Grade                    Contained Tin / Tin Equivalent ('000 tonnes)  Increase in contained Tin / Tin equivalent from 2016 MRE
 Lower Mine  Indicated       2,084                             1.59% Sn                 33                                            10.2%
             Inferred        1,937                             1.67% Sn                 32                                            129.8%

 Upper Mine  Indicated       277                               1.01% SnEq               3                                             9.5%
             Inferred        493                               0.93% SnEq               5                                             8.0%

 

The Mineral Resource Estimate for South Crofty (see news release dated June 9,
2021), is available in a report titled the "South Crofty Tin Project Mineral
Resource Update
(https://cornishmetals.com/site/assets/files/5449/421007_south_crofty_tin_project_mineral_resource_update_-_22_july_2021_-_sedar_copy.pdf)
", dated June 7, 2021, authored by Mr. N. Szebor, CGeol (London), EuroGeol,
FGS, of AMC Consultants (UK) Ltd, can be accessed on the Company's SEDAR page.

 

The technical information in this news release has been compiled by Mr. Owen
Mihalop who has reviewed and takes responsibility for the data and geological
interpretation. Mr. Owen Mihalop (MCSM, BSc (Hons), MSc, FGS, MIMMM, CEng) is
Chief Operating Officer for Cornish Metals Inc. and has sufficient experience
relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined under the JORC Code (2012) and as a Qualified
Person under NI 43-101. 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.

 

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.

For additional information please contact:

 

In North America:

 

Irene Dorsman at (604) 200 6664 or by e-mail at irene@cornishmetals.com
(mailto:irene@cornishmetals.com)

 

 SP Angel Corporate Finance LLP           Tel:                                                                          +44 203 470 0470

 (Nominated Adviser & Joint Broker)
                                          Richard Morrison
                                          Charlie Bouverat
                                          Grant Barker

 Hannam & Partners                        Tel:                                                                          +44 207 907 8500

 (Joint Broker)
                                          Matthew Hasson
                                          Andrew Chubb
                                          Ernest Bell

 BlytheRay                                Tel:                                                                          +44 207 138 3204

 (Financial PR/IR-London)
                                          Tim Blythe                                                                    tim.blythe@blyther (mailto:tim.blythe@blytheray.com) ay
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                                          Megan Ray                                                                     megan.ray@blythe (mailto:megan.ray@blytheray.com) ray
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ON BEHALF OF THE BOARD OF DIRECTORS

 

"Richard D. Williams"

Richard D. Williams

 

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 "forward-looking statements".  Forward-looking
statements, while based on management's best estimates and assumptions at the
time such statements are made, 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 COVID-19 global pandemic
and any variants of COVID-19 which may arise;  risks related to the
availability of financing; the timing and content of upcoming work programs
including completion and commissioning of the water treatment plant; actual
results of proposed exploration activities; possible variations in Mineral
Resources or grade; results of the Feasibility Study, 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.

 

Although Cornish Metals has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause results not
to be as anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. Cornish Metals undertakes no obligation or responsibility to
update forward-looking statements, except as required by law.

 

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