REG - Strategic Minerals - Duchy of Cornwall Mineral Rights Agreement

Strategic MineralsAnnouncement

20/03/2024 07:00

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RNS Number : 4803H  Strategic Minerals PLC  20 March 2024

 
 

 

20th March 2024

Strategic Minerals plc

("Strategic Minerals" or the "Company")

Mineral Rights Agreement Signed with The Duchy of Cornwall

Tamar Valley Licence Area

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable producing
mineral company, is honoured to announce that its 100% owned subsidiary
Cornwall Resources Limited ("CRL") has finalised an Exclusivity and
Prospecting Agreement (the "Agreement") with The Duchy of Cornwall ("The
Duchy") that will increase CRL's footprint in the East Cornwall/Tamar Valley
region almost fourfold.

Highlights:

·   This agreement between The Duchy of Cornwall and CRL represents the
first agreement of its kind in modern times aimed at advancing
commercialisation of The Duchy's mineral rights through an Exclusivity and
Prospecting Agreement.

·   Agreement provides exclusive mineral rights to certain areas, adjacent
to CRL's Redmoor licence area, located within the Duchy's mineral rights in
North and East Cornwall, covering over 6,427 Hectares (64.27 km²), including
the historically mined and highly prospective Tamar Valley Mining District.

·   CRL's regional exclusive mineral rights footprint increased almost 4
times to 87.95 km², up from 23.68 km².

·   Initial exclusive exploration period of 3 years, effective from 1(st)
April 2024, with an option to extend further.

·    The Agreement provides CRL the exclusive right to negotiate and
implement with The Duchy of Cornwall a further exploration deed and option to
mineral rights lease (for mining) over the Agreement area.

·    Within the Agreement area, CRL has the exclusive rights to undertake
exploration activities for all ores, minerals and metalliferous substances,
alongside other stores of metals at surface, with the exception of those
reserved to the Coal Authority, the Crown and Mines Royal.

·   Exploration activities will initially focus on a desktop review prior
to the continuation of the low-cost, high-impact, regional exploration and
targeting program, following on from the activities undertaken as part of the
successful Deep Digital Cornwall Project.

·   Further additional targeted work programs are currently being designed
and will be announced in due course.

·    The terms of the Agreement require CRL to pay an annual rent to The
Duchy of Cornwall.

·   CRL commits to working with The Duchy of Cornwall to further the
Duchy's development strategy to enhance economic, social, and environmental
outcomes within the Agreement area.

·     Agreement further secures CRL's significant mineral rights position
in the Tamar Valley of east Cornwall, with further announcements to follow.

Commenting, Alan Broome AM, Chairman of Strategic Minerals said:

"This agreement with The Duchy of Cornwall materially strengthens CRL's
mineral rights footprint in the Tamar Valley Mining District by increasing it
by a factor of almost four times. Strategic Minerals and CRL are honoured to
be trusted to deliver progress in compliance with The Duchy of Cornwall's
strategic objectives. The CRL team is excited to progress initial reviews of
the data and historical information available aimed at determining the design
of the most logical work programs, with further announcements to follow.

"CRL's regional presence has been significantly strengthened with the addition
of these prestigious mineral rights in areas that historically supported
active mining within the Tamar Valley Mining District. This development
further underwrites the Company's strategy to be part of, and benefit from,
the resurgence of mining activity in the UK and directly contribute to the
deliverability of the UK's Critical Minerals Strategy and Cornwall's ambition
to be a world-class region for metal mining and georesources."

Commenting, Joshua Conibear of Wardell Armstrong LLP, the Duchy of Cornwall's
Mineral Agent, said:

"The Duchy of Cornwall recognises the importance of the potential resources of
Critical Minerals located within its mineral rights holdings and grants
appropriate agreements with companies wishing to explore these opportunities."

Background:

Through constructive discussions with The Duchy's representatives over several
years, CRL has been able to demonstrate its strong commitment to ethical and
sustainable project development, whilst maintaining good community and
stakeholder relations, and high environmental standards. As a result of this,
CRL has been selected as the flagship company to advance the commercialisation
and exploration of The Duchy's mineral rights. This reflects The Duchy's and
CRL's shared understanding and commitment to sustainability, the strong
working relationship established with the Duchy's representatives and the work
ethic demonstrated by CRL through its 8-year history of successful exploration
at Redmoor and positive community interactions in the area.

CRL is aligned with The Duchy's vision for sustainable development of UK
Critical Minerals to aid the green industrial revolution and UK NetZero
aspirations, thus contributing to the Duchy's Strategic Objectives:
https://duchyofcornwall.org/integrated-thinking.html
(https://duchyofcornwall.org/integrated-thinking.html)

Overriding Strategic Objectives:

This agreement provides new rental income to The Duchy's portfolio and is
likely to set a precedent for further licensing, development, and
commercialization of mineral rights.

Community engagement and support - via updates to community and related
stakeholders. Improving perception for the return of sustainable, mining to
the area and the associated potential increases in local employment.

Improving environmental outcomes - via the potential mining of Critical
Minerals, with related establishment of green energy initiatives and study of
geothermal potential CRL aim to aid The Duchy, and UK, in reaching Net Zero.

Exclusivity and Prospecting Agreement:

The Agreement adds major new areas of mineral rights, directly adjacent to
CRL's existing mineral rights operating area at Redmoor, in the historically
mined and highly prospective Tamar Valley, totalling an area of 6,427 Hectare
(64.27 km²), including His Majesty's Land Registry (HMLR) registered mineral
rights totalling 4,162 hectares (41.62 km²).

The areas covered by the agreement encompass two parishes where the bulk of
mineral rights fall under the ownership of the Manor of Stoke Climsland and
the Manor of Calstock, belonging to The Duchy of Cornwall. In addition, a
portion of Linkinhorne and Callington parishes, which adjoin the Manors and
CRL's existing mineral rights area are included (see Map). The area includes
historically productive mines, key exploration areas and other sources of
metals.

The addition of these mineral rights, some adjacent to CRL's Redmoor Sheeted
Vein System, adds the historically mined areas to the immediate north,
including Redmoor Mine, Kelly Bray Mine, Holmbush Mine and other lodes,
collectively the Redmoor Consolidated Mines, into CRL's operating area. This
allows for more effective exploration at Redmoor, and the possibility of
building resources in Redmoor's immediate proximity.

The additional areas significantly increase CRL's footprint in the
historically productive mining region, known as the Tamar Valley Mining
District. Thus, providing the ability to explore for and establish additional
satellite resources to complement the Company's existing Redmoor Project.

The anticipated work program is likely to include: an initial desktop review
and report of historical information and geology, followed up with prospecting
including stream sediment and soil sampling, and potential geophysical and
geological mapping. With the ability to also implement trenching and borehole
drilling within the terms of the agreement. Further additional targeted work
programs are currently being designed and will be announced in due course.

CRL is focussed on the development of the high-grade, underground Redmoor
Tungsten-Tin-Copper project, and its progression towards and through
feasibility studies. Following the successful completion of the Deep Digital
Cornwall program, CRL remains in advanced and active discussions and
negotiations to progress its project, through unlocking new and significant
sources of funding to expand its operations. Through adding new and exciting
mineral rights areas, that were historically mined for tin, tungsten, copper
and other metals, CRL has the potential to add additional satellite resources
to a mine at Redmoor, subject to exploration.

About the Duchy of Cornwall

For further information please visit
https://duchyofcornwall.org/frequently-asked-questions.html
(https://duchyofcornwall.org/frequently-asked-questions.html)

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 to advance Redmoor, 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's most recent, JORC-compliant,
Inferred Mineral Resource Estimate ("MRE") for Redmoor utilised a
comprehensive archive of historical data and combined this with information
from the completion of two exploration campaigns, in 2017 and 2018, which
encompassed 32 boreholes for 14,000m of diamond core drilling. Based on this
high-grade resource, an updated Scoping Study, published in 2020 shows that
Redmoor has potentially economic viability as a new, underground mine.

JORC Compliant (2012) 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              1.50          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%*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

CRL through mineral rights agreements, with Redmoor Minerals Limited and The
Duchy of Cornwall, has exclusive access to a mineral rights operating area of
87.95 km² in the highly prospective Tamar Valley Mining District. CRL is
undertaking regional and targeted exploration activities to develop critical
minerals resources.

Subject to receipt of 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.

 

 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

 

Notes to Editors

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. The access
to this stockpile has been extended until 31 March 2027 and is likely to be
rolled over again at that time.

In May 2016, the Company entered into an agreement with New Age Exploration
Limited and, in February 2017, acquired 50% of Cornwall Resources Limited
(CRL) which holds 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
arrangements to acquire the balance of CRL which was settled on 24 July 2019
by way of a vendor loan, subsequently fully repaid on 26 September 2020. Since
this time, CRL has been progressing the development of the Redmoor
Tin/Tungsten project through its involvement in the EU funded Deep Digital
Cornwall exercise and the placement of Tin and Tungsten on the Critical
Minerals List of both the UK and USA.

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 September 2022, an updated PEPR, addressing the
conditions associated with the July 2021 approval, was approved. The Company
continues seeking capital to commence operations.

 

Map: CRL's mineral rights agreement areas (Red - Redmoor Minerals Ltd and Blue
- The Duchy of Cornwall).

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