REG - Strategic Minerals - Completion of Deep Digital Cornwall Project

Strategic MineralsAnnouncement

10/11/2023 07:00

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RNS Number : 0070T  Strategic Minerals PLC  10 November 2023

 

10 November 2023

Strategic Minerals plc

("Strategic Minerals", "SML" or the "Company")

Redmoor Update

Completion of Deep Digital Cornwall Project:

Soil Samples Indicate significant mineralisation trends near surface.

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable producing
mineral company, is pleased to announce an update from its 100% owned
subsidiary Cornwall Resources Limited ("CRL"), regarding the completion of its
involvement in the 'Deep Digital Cornwall' ("DDC") project. DDC was led by the
University of Exeter's Camborne School of Mines ("CSM"), in which CRL and
Cornish Lithium Plc were delivery partners. DDC was funded by the European
Regional Development Fund ("ERDF"), and administered through HM Department for
Levelling Up, Housing and Communities ("DLUHC").

Highlights:

·    Completion of all DDC field activities, and submission of a copy of
the data to the DDC Hub at CSM for long term storage and public access.

·    CRL's DDC outputs include:

o  Analytical data for 2,184 soil samples.

o  A highly detailed ground gravity survey and 3D interpretation.

o  Datasets from the DDC aerial survey of the Redmoor area, consisting of
electro-magnetic and magnetic data over 40 km².

o  460m of BoxScan (TM) data from CRL borehole CRD031.

·    These outputs provide a highly detailed and overlapping dataset,
which is expected to increase CRL's understanding of the geology and minerals
prospectivity of its larger licence area, and further highlight potential
target areas for follow-up exploration activities.

·    Following the completion of the grant funded activities, CRL is
continuing to review, analyse and interpret output datasets from DDC.
Including:

o  Digitisation and mapping of historical datasets.

o  Preparation for the modelling, analysis and interpretation of the aerial
survey datasets and integration of all geophysical datasets into a case study.

o  Further targeting of soil anomalies for further study, follow-up field
verification and infill sampling.

·    Soil sample results from infill sampling provide validation of the
Mineral Prospectivity Map ("MPM") first announced in a news release dated 14
September 2022; suggesting that the exploration methodologies undertaken as
part of the DDC program are effective in identifying new geochemical targets
and anomalies.

·    Work program initiated on Target 1, which contains Tin-Tungsten and
Copper-Lead-Zinc soil anomalies located near a previously identified granite
upwelling, and within a prospective zone highlighted by the MPM mapping.

·    CRL is in discussions to further advance collaboration on DDC
outputs, data interpretation and follow up activities.

Commenting, Peter Wale, Executive Director of Strategic Minerals and Director
of CRL, said:

"There are currently few comparative modern, highly detailed, and
comprehensive datasets covering mineral licence operating areas in the UK, and
fewer still examples of similar cost-effective datasets being produced.  The
CRL team has delivered a first-class outcome after the effective completion of
the DDC project. This has in turn contributed to the overall successful
completion of the DDC project.

"It is hoped that these outputs can be used to clearly demonstrate to the
Government the effectiveness of regional datasets for project targeting, and
therefore attract incentives to implement future projects.

"Now that DDC has come to an end, CRL aims to advance and analyse further the
work undertaken, through the completion of a case study, modelling of project
data and follow-up exploration activities. We look forward to benefiting from
these outputs. At this stage we believe that the outputs have provided
valuable information which helps us reinforce our understanding of our
existing resource and mineral rights. This has resulted in another step in
de-risking the project, whilst demonstrating there is much more left to
discover.

"We thank the efforts of Camborne School of Mines, the DDC team and Cornish
Lithium Plc for their cooperation and collaboration on work packages and the
successful completion of the project."

 

DDC Dataset Release

Through the Deep Digital Cornwall (DDC) grant funded project, CRL has used the
Redmoor exploration licence area as a field laboratory for the collection of
geochemical and geophysical datasets, which have now been made available for
public access and study. The updated results improve CRL's understanding of
the granite body below the licence area and, when combined with the soil
sampling results, highlight significant mineral prospectivity in the wider
licence area, and importantly identifying notable targets that require
follow-up exploration to further identify the potential for any significant
mineralisation.

With the finalisation of the DDC project and submission of CRL's final grant
claim, project partners have now made available all the publicly available
datasets collected during the project. This high-quality dataset will provide
the basis for future follow-on studies by CRL and other partners, whilst also
making available data to other users across many usage cases for onwards
study.

Soil Sampling Campaign - Results, Interpretation and Field Work

CRL's field team collected a total of 2,186 soil samples from August 2021 to
January 2023 (see Figure 1: Location Map). Samples were sent to ALS Loughrea
and were analysed using method ICP-MS ME-MS89L, with a Boron analysis add-on.
Final sample results were received from the laboratory in June 2023, with
publication delayed until finalisation of the DDC project was completed and
data transfer to the DDC Hub at Camborne School of Mines had been finalised.

The results and subsequent data from the soil sampling campaign, along with a
methodology document has been made publicly available for any parties
interested in the project via the University of Exeter
(https://deepdigitalcornwall.org).

Further to the publication of the data collected, CRL is undertaking a
comprehensive review and interpretation of the results, so far identifying
anomalous occurrences of Tin, Tungsten, Copper, and other base-metals. These
geochemical anomalies have been confirmed to be occurring in close correlation
with the areas outlined in the previously released Mineral Prospectivity Map
and coupled with a close relationship to the potential granitic upwellings
identified as part of the DDC gravimetric survey, both reported on 14
September 2022.

Further to the anomalous areas identified, CRL have established an initial
target area ("Target 1") containing an east-west trending Copper-Lead-Zinc
soil anomaly with soil samples containing concentrations of up to 320ppm
copper in sample DDC000320, 659ppm lead in DDC000106 and 2,600ppm zinc in
DDC002021, coupled with an adjacent Tin-Tungsten soil anomaly containing tin
concentrations up to 795ppm and tungsten concentrations up to 218ppm in sample
DDC00115 (see: Appendix A). Target 1 is adjacent to the previously modelled
granite upwellings, known geological structures and is 1.3km west of the
historically productive Holmbush Tin-Copper Mine.

Figure 1: map showing the locations of soil samples collected during the DDC
soil sampling program through both phases of sampling.

CRL's geologists have already undertaken a site visit to Target 1 to confirm
the absence of any potential historical mine workings or human-induced
contamination, concluding that this anomaly is the result of geological
factors that indicate the potential for new zones of mineralisation in the
wider Redmoor licence area. In conjunction with the site visit, a PhD
researcher from the Camborne School of Mines (CSM) collected stream sediment
samples to confirm the presence of metal concentrations in stream sediments
within the area and further develop exploration techniques and models that
could aid CRL in future exploration programs. With early results from their
analysis indicating two potential sources of mineralisation, and with further
follow up work and analysis planned.

With all these factors being considered, CRL believes this Target 1 to be
deserving of follow-up exploration and investigation. This will be achieved
firstly through continued collaboration with CSM, undertaking further infill
soil sampling with the aim of identifying the true extent and origin of this
anomaly. This will also be accompanied by extensive geological mapping and the
identification of any bedrock mineralisation, which may further support the
understanding of any potential mineralised system in the area. The program
will be supported by further PhD research of the target, with the aim of
supporting CRL's understanding of the nature of mineralisation and development
of potential novel exploration techniques.

Ground Gravity Survey - Results and Interpretation

The results of the ground gravity survey undertaken in CRL's licence area were
previously released in the 14 September 2022 announcement. This dataset used
in conjunction with other DDC outputs will aid CRL in identifying and
understanding geological structures controls and metal anomalies for further
exploration.

The two previously modelled granite upwellings coincide with anomalies
identified by CRL's DDC soils program. The importance in the identification of
these potential granitic upwellings is that they may provide a key source of
the metalliferous fluids that contribute to the formation of mineral deposits
throughout the Cornwall and the Southwest, and importantly for CRL, these
newly identified granitic upwellings can indicate the potential localities of
previously unidentified mineralised systems.

Subject to further exploration and investigation, Target 1 may prove to be a
newly discovered mineralised system that is related to these granite
upwellings, which would support CRL's belief that low-cost, high-impact
exploration techniques can aid in the identification of new mineral deposits
in the historically mined but underexplored Cornish mine field.

Aerial Geophysical Surveys - Interpretation Pending

During the spring of 2023, CRL continued to advance the DDC project, with
participation in an aerial geophysical survey commissioned by Cornish Lithium
Plc, on behalf of DDC, and flown by New Resolution Geophysics (NRG™), which
included surveys over both Redmoor and United Downs.

The Redmoor survey was flown in March 2023, and collected electromagnetic and
magnetic data across a 40km² area. The Redmoor survey was successfully flown
in four separate flights over two days and completed with strong community
interaction and support. Initial processed data from the aerial survey has
been made available to project partners at the end of May, with an initial
review of the data prepared for public release in conjunction with the
conclusion of the DDC program.

Further detailed processing, analysis and interpretation of the geophysical
data is yet to be undertaken with a finalised version of results to be
published in due course. It is expected that by combining the outputs from the
DDC reprocessing of historical geophysics data with CRL's gravity, EM and
Magnetic datasets will lead to a significant new understanding of the
geological and structural setting of the licence area, and potential lead to
further targeting of structures for exploration activities.

BoxScan(TM) Analysis - Results and Interpretation

BoxScan(TM) is a multi-purpose, modular core scanning platform that undertakes
a variety of analytical techniques on diamond drill core within a single
apparatus, designed and supplied by GeoTek Ltd. The BoxScan(TM) unit was
acquired and utilised by CRL in March 2023 with the primary purpose of
collecting a wide range of geological data including X-Ray Fluorescence (XRF)
geochemical data, magnetic susceptibility data, LabSpec spectrometer data for
the quantification of mineralogy and high-resolution imagery of the drill
core. In total 460m of core was scanned over a 12-day period.

This provided a significant amount of new data for CRL geologists to review
and interpret, allowing for a better understanding of geochemical and
geological relationships previously identified in drill core, and further
highlighting sections of core, outside of the Redmoor Sheeted Vein System
("SVS") resource, which had been overlooked in the past, but contain notable
mineralisation.

Historic Core Relogging

Following completion of DDC and review of the BoxScan(TM) database, CRL has
initiated a program, including relogging and sampling of the diamond drill
core from the Redmoor deposit, with the aim of better understanding the
controls on the established SVS mineralised zone and identifying new zones of
mineralisation, outside of the SVS, that have previously been under studies
and have gone unsampled.

This exercise comprises detailed vein and structure logging, analysis of the
differing styles of alteration and mineralisation outside of the primary
Sheeted Vein System and the identification of mineralised sections of core
that were not previously considered when modelling the current resource. To
date, approximately 2,000m of drill core has been relogged and studied with
mineralised sections selected for sampling for further analysis.

 

Competent Person's Statement

The information in this announcement that relates to exploration results is
based on information compiled and/or reviewed by Paul Gribble C.Eng., a Fellow
of the Institute of Materials, Minerals and Mining (FIMMM), and who is
Principal Geologist of Geologica UK (Geologica). Paul Gribble has sufficient
experience which is 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 in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves'. Paul Gribble is also a Competent Person "as defined in the
"Note for Mining and Oil & Gas Companies" which form part of the AIM Rules
for Companies".  Paul Gribble has reviewed and consented to the inclusion in
the announcement of the matters based on his information in the form and
context in which it appears.

Notes to Editors

The European Regional Development Fund (ERDF):

The Deep Digital Cornwall project is receiving up to £3,313,761 of funding
from the England European Regional Development Fund ("ERDF") as part of the
European Structural and Investment Funds Growth Programme 2014-2020. The
Department for Levelling Up, Housing and Communities ("DHULC") is the Managing
Authority for the ERDF grant. Established by the European Union, the European
Regional Development Fund helps local areas stimulate their economic
development by investing in projects which will support innovation,
businesses, create jobs and local community regenerations. For more
information visit https://www.gov.uk/european-growth-funding
(https://www.gov.uk/european-growth-funding) .

About Cornwall Resources
Limited:
           https://www.cornwallresources.com
(https://www.cornwallresources.com)

Cornwall Resources Limited ("CRL") is a wholly owned subsidiary of Strategic
Minerals Limited ("SML") (AIM: SML; USOTC: SMCDY) focussed on advancing the
high-grade, underground Redmoor Tungsten-Tin-Copper Project, through a current
relogging and sampling campaign of historic drill core and work towards
securing further funding, as well as exploring its significant and expanding
minerals rights licence areas in east Cornwall, South West England.

The Redmoor Project is situated within the historically significant Tamar
Valley Mining District, yet the sheeted vein system ("SVS") forming the basis
of CRL's inferred resource is unmined. SML bought into CRL in 2016, and in
2019 completed the purchase of the project. CRL completed a JORC-compliant
Inferred Mineral Resource Estimate ("MRE") for Redmoor using a comprehensive
archive of historical data and through the completion of two exploration
campaigns, in 2017 and 2018, totalling 32 boreholes for 14,000m of drilling.
An updated Scoping Study, published in 2020 shows that Redmoor has potentially
economic viability as a new, underground mine.

JORC Compliant Inferred Mineral Resource Estimate published 14 February 2019,
as summarised below:

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

                                  %      %     %     %         %
 >0.45 <0.65        1.5           0.18   0.21  0.3   0.58      0.41
 >0.65              10.2          0.62   0.16  0.53  1.26      0.88
 Total Inferred     11.7          0.56   0.16  0.5   1.17      0.82

 Resource

1 Equivalent metal calculation notes; Sn(Eq)% = Sn%*1 + WO3%*1.43 + Cu%*0.40.
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

Subject to necessary funding, CRL has in place permissions for drill programs,
in the Target Tip Valley ("TTV"), to test at depth previously reported
high-grade auger and trenching results (as reported 17 November 2021) and for
further exploration of the Redmoor Tungsten-Tin-Copper resource. A General
Permitted Development Order application, for necessary consents, was approved
by Cornwall Council for the TTV program and a full Planning Permission has
been granted by Cornwall Council for the Redmoor drilling.

Strategic Minerals plc:

Strategic Minerals plc is an AIM-quoted, profitable operating minerals company
actively developing projects tailored to materials expected to benefit from
strong demand in the future. It has an operation in the United States of
America along with development projects in the UK and Australia. The Company
is focused on utilising its operating cash flows, along with capital raisings,
to develop high quality projects aimed at supplying the metals and minerals
likely to be highly demanded in the future.

In September 2011, Strategic Minerals acquired the distribution rights to the
Cobre magnetite tailings dam project in New Mexico, USA, a cash-generating
asset, which it brought into production in 2012 and which continues to provide
a revenue stream for the Company. This operating revenue stream is utilised to
cover company overheads and invest in development projects aimed at supplying
the metals and minerals likely to be highly demanded in the future.

In May 2016, the Company entered into an agreement with New Age Exploration
Limited and, in February 2017, acquired 50% of the Redmoor Tin/Tungsten
project in Cornwall, UK. The bulk of the funds from the Company's investment
were utilised to complete a drilling programme that year. The drilling
programme resulted in a significant upgrade of the resource. This was followed
in 2018 with a 12-hole 2018 drilling programme has now been completed and the
resource update that resulted was announced in February 2019. In March 2019,
the Company entered into arrangements to acquire the balance of the Redmoor
Tin/Tungsten project which was settled on 24 July 2019 by way of a vendor loan
which was fully repaid on 26 June 2020.

In March 2018, the Company completed the acquisition of the Leigh Creek Copper
Mine situated in the copper rich belt of South Australia and brought the
project temporarily into production in April 2019. In July 2021, the project
was granted a conditional approval by the South Australian Government for a
Program for Environmental Protection and Rehabilitation (PEPR) in relation to
mining of its Paltridge North deposit and processing at the Mountain of Light
installation. In late June 2022, an updated PEPR, addressing the conditions
associated with the July 2021 approval, was approved.

 For further information, please contact:

 Strategic Minerals plc                                   +61 (0) 414 727 965
 John Peters
 Managing Director
 Website:               www.strategicminerals.net (http://www.strategicminerals.net)
 Email:                 info@strategicminerals.net (mailto:info@strategicminerals.net)

 Follow Strategic Minerals on:
 Vox Markets:           https://www.voxmarkets.co.uk/company/SML/
                        (https://www.voxmarkets.co.uk/company/SML/)
 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
 Ewan Leggat
 Charlie Bouverat

Appendix A - Samples identified in 'Target 1' with anomalous metal
concentrations of either Sn, W, Cu, Pb or Zn:

 

Geochemical anomaly map outlining the extent of the tin soil anomaly identified as part of the DDC soil sampling program, with the background heatmap outlining the extent of the anomaly based upon statistical analysis of the geochemical data, coupled with the inferred granitic upwellings.

Geochemical anomaly map outlining the extent of the tungsten soil anomaly identified as part of the DDC soil sampling program, with the background heatmap outlining the extent of the anomaly based upon statistical analysis of the geochemical data.

Geochemical anomaly map outlining the extent of the copper soil anomaly identified as part of the DDC soil sampling program, with the background heatmap outlining the extent of the anomaly based upon statistical analysis of the geochemical data.

Geochemical anomaly map outlining the extent of the lead soil anomaly identified as part of the DDC soil sampling program, with the background heatmap outlining the extent of the anomaly based upon statistical analysis of the geochemical data.

Geochemical anomaly map outlining the extent of the zinc soil anomaly identified as part of the DDC soil sampling program, with the background heatmap outlining the extent of the anomaly based upon statistical analysis of the geochemical data.

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