REG - Cornish Metals Inc. - SOUTH CROFTY TIN PROJECT PROGRESS REPORT

Cornish MetalsAnnouncement

18/05/2023 07:00

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RNS Number : 7904Z  Cornish Metals Inc.  18 May 2023

 

CORNISH METALS PROVIDES SOUTH CROFTY TIN PROJECT PROGRESS REPORT

Targeting water treatment plant commissioning and start of mine dewatering
this summer

Pump Installation to commence this month

Vancouver, May 17, 2023

Cornish Metals Inc. (TSX-V/AIM: CUSN) ("Cornish Metals" or the "Company") is
pleased to provide an update on progress at the South Crofty Tin Project
("South Crofty" or the "Project"), located in Cornwall, SW England.

Richard Williams, CEO and Director, stated "The team in Cornwall has made
great progress over the last five months, despite adverse weather conditions.
It is exciting to see the water treatment plant approach completion and we now
start turning our attention to the commissioning and commencement of mine
dewatering activities this summer. Further news on the metallurgical drill and
testwork programme and ongoing Feasibility Study will be issued shortly."

Mine Water Treatment Plant

The mine water treatment plant ("MWTP") is designed to treat 25,000 cubic
metres ("m(3)") of mine water per day, and based on historic pumping records,
mine dewatering is estimated to take 18 months to complete.  Photographs of
the construction of the MWTP can be viewed here
(https://cornishmetals.com/news/2023/cornish-metals-provides-south-crofty-tin-project-progress-report/)
, and progress on the MWTP is summarised below:

·  All tanks, except the CO(2) and deep cone thickener, have been installed
with those remaining items expected to be in place by the end of May.

·   All structural steelwork and walkways around the tanks have been
assembled and the pipework connecting the tanks and tank valve installation is
underway. The MCC (Motor Control Centre) design is complete and manufacturing
underway with delivery expected in June.

·   Wet commissioning of the MWTP is now expected to commence in late June
(rather than late May) and extend through July, with commencement of mine
dewatering in early August.

·  The discharge pipes from the MWTP down into the Dolcoath Deep Adit (the
historic drainage tunnel running northwards from South Crofty beneath Pool and
Camborne to Roscroggan) have been installed. A turbine will be added ahead of
the discharge point that will generate up to 15% of the electricity required
to operate the MWTP.

·    The first submersible pump has been successfully tested offsite and
is now ready for imminent installation into New Cook's Kitchen ("NCK") shaft.
The second pump is to be delivered by the end of May for subsequent
installation. Piping from NCK shaft to the MWTP is substantially complete.

·   The building housing the high voltage power supply / sub-station and
variable speed drives required to operate the pumps is complete, and the 11kV
power supply is scheduled to be in place in June.

·    The cost of construction of the water treatment plant is forecast at
£6.5 - £7.0 million.

Shaft Re-access Work

Progress on the NCK shaft re-access work is summarised below:

·   Two single drum winders have been ordered for the shaft re-access
work, with the main winder from Siemag Tecberg and an emergency winder from
Zitron. They are due on site in October and August this year respectively.

·  Conveyance and rope attachment packages for both winders are now being
tendered for design and fabrication, and new winding ropes have been ordered
for both machines.

·  Both sheave wheels and bearing blocks have been removed from the South
headframe. The eastern sheave wheel has been split and the shafts and bearings
are now ready for NDT (non-destructive test) testing.

·   Test runs of the submersible pump installation into the shaft have
been successfully completed, and the pumps will be installed during May and
June.

·   Interim shaft work platforms have been designed and are substantially
fabricated. The above water timber compartments in the shaft have been
inspected down to No.1 Level, with most sets found to be in good condition.

Background

·   South Crofty is an historic, high-grade, underground tin mine that
started production in the sixteenth century, and continued operating until its
closure in 1998;

·   The Project possesses Planning Permission for underground mining,
valid to 2071, to construct a mine water treatment plant, new processing
facilities, all necessary site infrastructure, and an Environmental Permit to
dewater the mine;

·    South Crofty has the 4(th) highest grade tin Mineral Resource
globally and benefits from the presence of multiple shafts that can be used
for future operations;

·     Tin is a Critical Mineral as defined by the UK, USA, and Canadian
governments, with approximately 75% of the tin mined today coming from China,
Myanmar and Indonesia;

·     There is no primary tin production in Europe or North America;

·    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 and regional and
national government support.  The Project could generate 250 - 300 direct
jobs.

ABOUT CORNISH METALS

Cornish Metals is a dual-listed company (AIM and TSX-V: CUSN) focused on
advancing the South Crofty high-grade, underground tin project through to
delivery of a Feasibility Study, as well as exploring its additional mineral
rights, all located in Cornwall, South West England. The former producing
South Crofty tin mine is located beneath the towns of Pool and Camborne, and
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 is currently well underway. Dewatering of the mine
is expected to commence in August 2023.

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.

 

 

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)

 

 

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 (Financial PR/IR-London)
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ON BEHALF OF THE BOARD OF DIRECTORS

 

"Richard D. Williams"

Richard D. Williams, P.Geo

 

 

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.

 

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 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.

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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