REG - Strategic Minerals - Leigh Creek Copper Mine - Revised PEPR Submitted

Strategic MineralsAnnouncement

05/01/2022 11:35

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RNS Number : 5270X  Strategic Minerals PLC  05 January 2022

 

5 January 2022

Strategic Minerals plc

("Strategic Minerals" or the "Company")

Leigh Creek Copper Mine

Revised PEPR Submitted

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable producing
mineral company, is pleased to advise the market that its wholly owned
subsidiary Leigh Creek Copper Mine ("LCCM" or the "Project") has today
re-lodged the Project's Program for Environmental Protection and
Rehabilitation ("PEPR") to the Department of Energy and Mining ("DEM") of
South Australia addressing the conditional elements of the DEM's July 2021
approval.

The long lead time, in responding to the conditional PEPR approval, reflected
the need to collect samples of cover for the waste rock dumps and the
subsequent testing and analysis of this material in an erosion model to
evaluate cover designs.  This work was accelerated, as much as possible, by
calling on existing networks and working closely with the consultants
undertaking the work.

The other major component of the work was the evaluation of the Potential Acid
Forming ("PAF") nature of the ore and waste rock.  This required selecting
and then collecting samples from the 2019 drilling program and undertaking
Acid Rock Drainage and kinetic testing.  In a boost for the Project, this
work identified that the waste rock at Paltridge North has a low capacity to
produce acid, and this low capacity PAF material can be co-disposed with run
of mine waste, which has adequate neutralising capability.

This, version 9 of the PEPR, reflects the agreement arrived at early with DEM
to submit this PEPR as a "oxide only" PEPR, with highlighted statements to
easily adjust for the transitional ore case.  The Company expects to receive
DEM's approval for the oxide only case, which should cover the first 12+
months of production and then follow up with revision 10 of the PEPR, which
will address only the additional mining of the transitional ore. The Company
considers that this process will not impact the expected timing or economics
for the Project, as previously disclosed to the market.

Commenting, Alan Broome AM, Non-Executive Chairman of Strategic Minerals,
said:

"The Company has worked closely with the DEM and feels confident that its
review of the submitted PEPR revision will be assessed in less than the
maximum statuary requirement of three months.

"Whilst no guarantees can be provided, the Company is hopeful that, after this
revision has been assessed by the DEM and subject to receipt of Project
funding, it will be in a position to commence operations at LCCM."

 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.

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 drilling programme 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. The project has been
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.

 

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