REG - Cornish Metals Inc. - UPDATED MINERAL RESOURCE ESTIMATE FOR SOUTH CROFTY
14/09/2023 07:15
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RNS Number : 3794M Cornish Metals Inc. 14 September 2023
CORNISH METALS RELEASES UPDATED MINERAL RESOURCE ESTIMATE FOR SOUTH CROFTY TIN
PROJECT
31.6% increase to Contained Tin in the Indicated Category in the Lower Mine
Area
Vancouver, September 13, 2023
Cornish Metals Inc. (TSX-V/AIM: CUSN) ("Cornish Metals" or the "Company"), a
mineral exploration and development company focused on its South Crofty Tin
Project ("South Crofty" or the "Project") in Cornwall, United Kingdom, is
pleased to release an updated JORC (2012) Mineral Resource Estimate ("MRE")
for the South Crofty Tin Project. Cornish Metals has a 100% interest in, and
is the operator of, the South Crofty Project.
The focus of this new MRE is the Lower Mine area ("Lower Mine") tin-only
section of the Project, which has been subject to a thorough review, including
further digitisation and modelling of historical data, but the Upper Mine
polymetallic area has also been reported using current metal prices.
Furthermore, assay results from recent drilling of the existing major
structures at depth (No.4, No.8, Roskear and North Pool Zone) as part of a
metallurgical testwork programme, have been incorporated into the new MRE.
This Lower Mine Tin-only updated MRE is summarised in Table 1 below:
Table 1: Summary of South Crofty Lower Mine Mineral Resource Estimate at 0.6%
Sn Cut-Off Grade, 6(th) September 2023
Classification Mass Grade Contained Tin (t) Increase to Contained Tin from 2021 MRE (t /
%)
(kt) (% Sn)
Indicated 2,896 1.50 43,573 10,475 / 31.6%
Inferred 2,626 1.42 37,422 5,026 / 15.5%
Note: See footnotes below in Table 2.
Key Points
· 39.0% increase in tonnes and 31.6% increase in contained tin in the
Indicated Mineral Resource category from the 2021 MRE (see news dated June 9,
2021);
· 35.6% increase in tonnes and 15.5% increase in contained tin in the
Inferred Mineral Resource category from the 2021 MRE;
· This MRE is based on a 0.6% Sn cut-off grade, as was used in the 2021
MRE;
· The majority of new Mineral Resources are contained within the
central part of the mine in No. 1, No. 2, No. 3, Main, Intermediate, North and
Great Lodes following digitization and modelling of historical data;
· The major lode structures that comprise the Mineral Resource remain
open along strike and at depth;
· The MRE was prepared by Cornish Metals' in-house geology team and
independently reviewed and verified by Nicholas Szebor of AMC Consultants (UK)
Ltd ("AMC"), who takes responsibility for the estimate; and
· AMC will prepare an updated NI 43-101 Technical Report which will be
filed on SEDAR within 45 days of this announcement.
Richard Williams, CEO and Director, stated; "This is another positive
development for South Crofty as we advance the Project through to delivery of
a Feasibility Study ("FS") by the end of 2024 and continue to demonstrate the
potential to increase the Project's Mineral Resource and mine life. The
updated MRE will be incorporated into the FS mine plan scheduled for release
before the end of 2024."
Table 2 below details the Lower Mine MRE by individual Lode / Zone:
Table 2: South Crofty Lower Mine Mineral Resource Estimate at 0.6% Sn Cut-Off
Grade, 6(th) September 2023
Lode / Zone Classification Mass Grade Contained Tin
(kt) (% Sn) (t)
No. 1 and No. 2 Indicated 479 1.31 6,281
No. 3 Indicated 164 1.26 2,070
No. 4 Indicated 488 1.76 8,595
No. 8 Indicated 113 2.00 2,264
No. 9 Indicated 98 1.47 1,442
Dolcoath Indicated 466 1.39 6,464
Main/Intermediate/North/Great Indicated 61 1.09 662
North Pool Zone Indicated 283 1.35 3,814
Providence Indicated - - -
Pryces / Tincroft Indicated 347 1.18 4,092
Roskear Indicated 397 1.99 7,889
Total Indicated 2,896 1.50 43,573
No. 1 and No. 2 Inferred 580 1.21 7,029
No. 3 Inferred 183 1.13 2,079
No. 4 Inferred 293 1.53 4,467
No. 8 Inferred 149 2.08 3,103
No. 9 Inferred 103 1.54 1,597
Dolcoath Inferred 304 1.31 3,993
Main/Intermediate/North/Great Inferred 276 1.16 3,214
North Pool Zone Inferred 185 1.30 2,391
Providence Inferred 98 1.55 1,578
Pryces / Tincroft Inferred 177 1.34 2,375
Roskear Inferred 278 2.01 5,596
Total Inferred 2,626 1.42 37,422
Notes to Table 2:
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. Cut-off grade was calculated assuming a 24,500 $/t tin price
and an assumed metal recovery of 88.5%
5. For the purpose of this Mineral Resource Estimate, assays
were capped by lode for the "Lower Mine" between 1.5% Sn and 23% Sn.
6. Bulk densities of 2.77 t/m(3) have been applied for volume to
tonnes conversion for the Lower Mine.
7. Mineral Resources for the Lower Mine have had a minimum
mining width of 1.2 m applied using 0% Sn dilution.
8. Mineral Resources are estimated from a depth of approximately
350 m to a depth of approximately 870 m.
9. Mineral Resources are classified as Indicated and Inferred
based on drillhole and channel sample distribution and density, interpreted
geological continuity and quality of data.
10. The Mineral Resources have been depleted for past mining, however,
they contain portions that may not be recoverable pending further engineering
studies.
11. 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.
12. Effective date 6(th) September 2023.
13. Numbers may not compute exactly due to rounding.
Table 3 below details the Upper Mine MRE by individual Lode / Zone. The only
change to the Upper Mine MRE is a recalculation of Tin equivalent grades due
to changes in metal prices since the 2021 MRE was published:
Table 3: South Crofty Upper Mine Mineral Resource Estimate at 0.6% SnEq
Cut-Off Grade, 6(th) September 2023
Lode / Zone Mass Grade Contained Tin Equivalent
(kt) % Sn % Cu % Zn % SnEq. (t)
Dolcoath Middle 90 0.72 0.88 0.16 1.01 904
Dolcoath Middle Branch 37 0.89 0.34 0.02 1.00 367
Dolcoath Upper Main - - - - - -
Dolcoath Upper South South Branch - - - - - -
Dolcoath NVC - - - - - -
Dolcoath Little NW 12 0.69 0.16 0.87 0.81 99
Dolcoath Little NW FW - - - - - -
Dolcoath Little NE - - - - - -
Dolcoath South Entral 122 0.62 0.91 1.05 1.00 1,213
Total Indicated 260 0.69 0.78 0.59 0.99 2,583
Dolcoath Middle 22 0.75 0.05 0.01 0.77 171
Dolcoath Middle Branch - - - - - -
Dolcoath Upper Main 271 0.61 0.60 0.22 0.82 2,210
Dolcoath Upper South South Branch 88 0.50 0.73 1.83 0.88 778
Dolcoath NVC 36 0.75 1.09 0.15 1.10 395
Dolcoath Little NW - - - - - -
Dolcoath Little NW FW 1 0.81 0.03 0.25 0.84 8
Dolcoath Little NE 47 1.15 0.55 1.43 1.45 677
Dolcoath South Entral - - - - - -
Total Inferred 465 0.66 0.63 0.63 0.91 4,239
Notes to Table 3:
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 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.
4. 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.
5. For the purpose of this Mineral Resource Estimate, assays
were capped by lode for the Upper Mine at 6% for Sn, 4% for Cu and 20% for Zn.
6. Bulk densities of 2.77 t/m3 and 3.00 t/m3 have been applied
for ore volume to tonnes conversion for the granite hosted and metasediment
(Killas) hosted Mineral Resources respectively.
7. Mineral Resources are estimated from near surface to a depth
of approximately 350 m.
8. Mineral Resources are classified as Indicated and Inferred
based on drillhole and channel sample distribution and density, interpreted
geological continuity and quality of data.
9. The Mineral Resources have been depleted for past mining;
however, they contain portions that may not be recoverable pending further
engineering studies.
10. 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.
11. Effective date 6(th) September 2023.
12. Numbers may not compute exactly due to rounding.
BACKGROUND
· South Crofty is a historical, high-grade, underground tin mine that
started production in the sixteenth century, and continued operating until
1998;
· The Project possesses Planning Permission for underground mining,
valid to 2071, Planning Permission 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.
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.
Independent Qualified Person
This Mineral Resource Estimate was prepared by Mr. Nicholas Szebor (MCSM, BSc,
MSc, CGeol, EurGeol, FGS), General Manager and Principal Geologist at AMC
Consultants (UK) Limited, a Qualified Person under National Instrument 43-101
(NI 43-101) and a Competent Person as defined under the JORC Code (2012).
A Technical Report disclosing the Mineral Resource Estimate 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. Mr.
Szebor consents to the inclusion in this announcement of the matters based on
his information in the form and context in which it appears.
Use of Foreign Reporting Code
Mineral Resources are classified in accordance with the JORC Code (2012). The
confidence categories assigned under the JORC Code were reconciled to the
confidence categories in the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) Definition Standards - for Mineral Resources and Mineral
Reserves May 2014 (the CIM Definition Standards). Mineral Resource
classifications of "Indicated" and "Inferred" have been used in this press
release.
The South Crofty data has been reviewed and verified in relation to CIM best
operating practices for reporting and for scope and content of JORC and NI
43-101 reporting through a due diligence conducted by Mr. Nicholas Szebor
(MCSM, BSc, MSc, CGeol, EurGeol, FGS), General Manager at AMC, an independent
qualified person on behalf of the Company. The technical report in respect of
the updated Mineral Resource, when filed, will contain more detailed
information concerning individual responsibilities, associated quality
assurance and quality control, and other data verification matters, and the
key assumptions, parameters and methods used by the Company.
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.
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 / cornish@hannam.partners
email:
(Joint Broker)
Matthew Hasson
Andrew Chubb
Jay Ashfield
BlytheRay Tel: +44 207 138 3204
(Financial PR/IR-London)
Tim Blythe tim.blythe@blytheray.com (mailto:tim.blythe@blytheray.com)
Megan Ray megan.ray@blytheray.com (mailto:megan.ray@blytheray.com)
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.
Appendix
"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.
"kt" means thousand tonnes
"Lodes" means a vein of metal ore in the earth
"MRE" means Mineral Resource Estimate
"Mt" means million tonnes
"Sn" means Tin
"Sn Eq" means Tin Equivalent. 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.
"t" means tonnes;
"Zn" means Zinc
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