REG - Strategic Minerals - Cobre Sales Update

Strategic MineralsAnnouncement

03/04/2025 07:00

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RNS Number : 4285D  Strategic Minerals PLC  03 April 2025

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the
European Union (Withdrawal) Act 2018.

 

Strategic Minerals plc

("Strategic Minerals" or the "Company")

March Quarter 2025 Sales and Cash Balances

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company,
is pleased to provide the following update on the Company's ore sales at the
Cobre magnetite operation in New Mexico, USA ("Cobre") for the quarter
ended 31 March 2025.

Highlights

·      March quarter sales volumes of 17,162 tonnes (March quarter 2024:
12,393 tonnes), with year-on-year growth of 38%.

·      March quarter revenue of US$1.18m (March quarter
2024: US$0.84m), with year-on-year growth of 41%.

·      Group cash balance of US$0.53m as at 31 March
2025 (US$0.25m as at 31 March 2024 and US$0.62m as at 31 December 2024),
principally due to increased activity at the Redmoor Tungsten-Tin-Copper
Project in Cornwall, UK ("Redmoor").

·      In January the Company announced the appointment of Mr Philip
Haydn-Slater as an independent Non-Executive Director.

·      In February the Company announced additional tungsten and copper
mineralisation identified by relogging of core programme at Redmoor,
validating potential upside to the existing JORC (2012) compliant Mineral
Resource Estimate ("MRE").

 

Sales update: Cobre magnetite tailings operations

The Company posted sales volumes of 17,162 tonnes in the March quarter 2025, a
38% increase on the March quarter 2024 results, equating to US$1.18m of
sales revenues, itself a 41% increase on the March 2024 quarter.

The Company continues to benefit from the return of Cobre's major client in
the 2024 operational year and the in-country team have consistently delivered
when scaling operations to meet demand.

Sales comparisons for quarterly and annual periods to 31 March 2025, along
with associated volume details, are shown in the table below:

       Tonnage                                       Sales (US$'000)
 Year  3 months to Mar       12 months to Mar        3 months to Mar  12 months to Mar
 2025  17,162                75,423                  1,188            5,094
 2024  12,393                25,625                  841              2,002
 2023  4,733                 30,405                  415              2,198
 2022  10,610                40,244                  663              2,502

 

Cash Balances

As at 31 March 2025, the Company's cash balance was US$0.53m. This was due
to another strong quarter of sales volumes at Cobre as the Company continues
to rationalise the internal cost profile ready to focus on CRL and critical
minerals exploration and development.

Cornwall Resources Limited

In February, the Company's 100% subsidiary CRL, announced initial success at
Redmoor through a process of relogging and sampling of its existing diamond
drill core.

Results identify new tungsten, copper and tin mineralisation within and
external to the Sheeted-Vein-System (SVS), included:

·      Tungsten trioxide grades of 0.33% WO(3) over 1m from 393.5m and
0.30% WO(3) over 1m from 440.95m, both in CRD025;

·      Copper grades of 0.34% Cu over 4m from 384m in CRD022 and 0.42%
over 1.25m from 326.9m in CRD024;

·      Elevated tin concentrations up to 0.36% Sn over 1.3m from 270.7m
in CRD027.

The results further validated the potential upside to the existing JORC (2012)
compliant Redmoor Mineral Resource Estimate ("MRE") published on 14 February
2019.

Relogging continues and CRL has started to recruit more in-house geological
specialists in order to accelerate the planned exploration work programme.

 

Commenting, Mark Burnett, Executive Director of Strategic Minerals, said:

"The Company continued to post strong operational and financial results in the
first quarter of 2025 which will support the renewed focus on critical
minerals exploration and development at the Redmoor Tungsten-Tin-Copper
Project in Cornwall, UK. I would like to thank the whole team for their
dedication throughout this transition period and look forward to delivering
value for shareholders in 2025."

 

 For further information, please contact:

 Strategic Minerals plc                                   +44 (0) 207 389 7067
 Mark Burnett
 Executive Director
 Website:               www.strategicminerals.net (http://www.strategicminerals.net)
 Email:                 info@strategicminerals.net (mailto:info@strategicminerals.net)

 Follow Strategic Minerals on:
 X (formerly Twitter):  @SML_Minerals (https://twitter.com/SML_Minerals)
 LinkedIn:              https://www.linkedin.com/company/strategic-minerals-plc
                        (https://www.linkedin.com/company/strategic-minerals-plc)

 SP Angel Corporate Finance LLP                           +44 (0) 20 3470 0470
 Nominated Adviser and Broker
 Matthew Johnson
 Charlie Bouverat

 Grant Barker

 

Notes to Editors

Strategic Minerals plc (AIM: SML; USOTC: SMCDY) is an AIM-quoted, producing
minerals company, actively developing strategic projects in the UK, United
States and Australia.

In 2019, the Company completed the 100% acquisition of Cornwall Resources
Limited ("CRL") and the Redmoor Tungsten-Tin-Copper Project.

The Redmoor Project is situated within the historically significant Tamar
Valley Mining District in Cornwall, United Kingdom, with a JORC Compliant
(2012) Inferred Mineral Resource Estimate published 14 February 2019:

 Cut-off (SnEq%)          Tonnage (Mt)  WO(3)  Sn    Cu    Sn Eq(1)  WO(3) Eq

                                        %      %     %     %         %
 >0.45 <0.65              1.50          0.18   0.21  0.30  0.58      0.41
 >0.65                    10.20         0.62   0.16  0.53  1.26      0.88
 Total Inferred Resource  11.70         0.56   0.16  0.50  1.17      0.82

1 Equivalent metal calculation notes; Sn(Eq)% = Sn% x 1 + WO3% x 1.43 + Cu% x
0.40. WO(3)(EQ)% = Sn% x 0.7 + WO(3) + Cu% x 0.28. Commodity price
assumptions: WO3 US$ 33,000/t, Sn US$ 22,000/t, Cu US$ 7,000/t. Recovery
assumptions: total WO3 recovery 72%, total Sn recovery 68% & total Cu
recovery 85% and payability assumptions of 81%, 90% and 90% respectively

More information on Cornwall Resources can be found at:
https://www.cornwallresources.com (https://www.cornwallresources.com)

In September 2011, Strategic Minerals acquired the distribution rights to the
Cobre magnetite project in New Mexico, USA, through its wholly owned
subsidiary Southern Minerals Group ("SMG"). Cobre has been in production since
2012 and continues to provide a sustainable revenue stream for the Company.

In March 2018, the Company completed the acquisition of the Leigh Creek Copper
Mine ("LCCM") situated in the copper rich belt of South Australia. The Company
continues seek opportunities to monetise the asset.

 

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