REG - Strategic Minerals - Redmoor Project Update

Strategic MineralsAnnouncement

02/08/2024 07:00

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RNS Number : 8971Y  Strategic Minerals PLC  02 August 2024

 

2 August 2024

 

Strategic Minerals plc

("Strategic Minerals" or the "Company")

New significant mineralised intervals identified outside of current Redmoor
MRE, positive grab sample results

&

New mineral rights agreement

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company,
is pleased to update shareholders on the current progress at its 100% owned
subsidiary Cornwall Resources Limited ("CRL"). CRL is continuing to develop
the Redmoor Project through a process of relogging and sampling its drillcore,
and other operations. CRL is pleased to provide an update following receipt
from ALS Laboratories, Loughrea, Ireland, of assay results from the first
batch of samples including the identification of new zones of potentially
economic W-Sn-Cu mineralisation within the Redmoor Deposit and outside of the
current Mineral Resource Estimate ("MRE") and the delineation of newly
identified mineralised structures. CRL also announces the completion of a new
mineral rights agreement.

Highlights:

·    Assay data confirms the identification of four new mineralised zones
from laboratory results from 194 new diamond drillcore samples, across 3
diamond core drillholes from CRL's 2019 drilling.

·    Including newly identified potentially economic
W-Sn-Cu-mineralisation within the Sheeted-Vein-System ("SVS"); results
include:

o  Tungsten trioxide grades of 0.94% WO(3) over 4.12m from 606.75m and 0.81%
WO(3) over 1.5m from 305.15m in CRD032, and 0.55% WO(3) over 1.45m from
561.71m in CRD031; and

o  elevated Tin concentrations up to 0.25% Sn over 1.39m from 552.55m from
drillhole CRD032 (all intervals reported as downhole width).

·    The assay data also includes newly identified intercepts of
potentially economic mineralisation outside of the Redmoor SVS, including:

o  Copper grades up to 1.19% Cu over 1.65m from 360.40m in CRD031; and

o  Copper and Tin grades of 0.46% Cu and 0.24% Sn over 1.28m from 516.90m in
CRD029 (all intervals reported as downhole width).

·    The results confirm that CRL's drillholes contain additional zones of
mineralisation at Redmoor from those previously reported, as extensions or
additional mineralised zones within the Redmoor SVS and new intercepts outside
of the SVS.

·    4,900m of CRL drillcore has been re-logged to date, from 7
drillholes, representing 35% of drillcore from all previous CRL drillholes.

·     Assay results have also been received for three grab samples
previously collected during reconnaissance mapping of the Tamar Valley Licence
(previously reported in RNS dated 9 May 2024), with sample CRL24042301
returning grades of 1.72% Sn and 0.26% WO(3) and sample CRL24042302 returning
a grade of 1.19% WO(3).

·    CRL has signed a new Exploration Licence and Mining Option, effective
August 2024, with a third major mineral rights owner for all mineral rights
they own in East Cornwall, including 5.46 km² of registered minerals rights
in the Tamar Valley area, in and around CRL's existing exploration footprint,
further strengthening CRL's mineral rights position in the historically mined
and highly prospective Tamar Valley Mining District.

 

Commenting, Dennis Rowland, Project Manager of CRL, said:

"I am pleased to see that these first results confirm our assumption that
there is potential upside at Redmoor from reviewing our existing drillcore
with fresh eyes and improved methodologies. This low-cost process is expected
to deliver further positive results.

"The geological team continues to relog and sample at pace with a second batch
of samples already shipped for analysis, and a third batch in preparation. We
expect to report results and ship new samples at regular intervals moving
forward until completion of this project.

"It is expected that following completion of this program of works that both
the understanding of the Redmoor deposit will have increased, leading to
improved future drill targeting, and an assessment made for the potential for
an update to Redmoor's existing mineral resource estimate based on new results
and the improved understanding of the deposit."

Commenting, Peter Wale, Director of CRL, said:

"CRL is happy to secure a third mineral rights agreement within the Tamar
Valley Mining District for mineral rights that complement CRL's two previous
agreements. These rights are within and around CRL's already existing
exploration footprint and include historic mining prospects.

"The conclusions thus far on the relogging work have potentially material
implications for both our existing mineral resource and beyond.

"I am also particularly excited by our first grab sample results, confirming
both high grade tin and tungsten from the Tamar Valley Licence area, which
forms part of the area CRL licenced from the Duchy of Cornwall earlier this
year.

"CRL would also like to thank Paul Gribble, of Geologica, for his previous
support as CP, and wish him well for his retirement."

Redmoor Project - Re-Logging and Sampling of CRL Drillcore

CRL's geologists are progressing in reverse order through the Redmoor
drillholes beginning at CRD032. This is to approach the programme in a
methodical and logical manner and as such is unbiased to the tenor of
mineralisation previously logged and assayed in the holes. Due to an increase
in the variety and amount of data being collected, all holes are treated as
new, allowing CRL's geologists to create a new dataset which is viewed as
being a step change improvement on data previously collected.

Coupled with new sampling and reviews of other relevant datasets, this
programme is expected to lead to an updated geological model for Redmoor and
the potential for an update to Redmoor's existing MRE. These tasks will be
reviewed and then undertaken following completion of the re-logging and
sampling campaign. The process is currently over 30% complete and continues to
advance at pace.

The first batch of samples shipped to ALS Loughrea, Ireland, have now been
analysed and have returned promising results. These results have highlighted
newly defined zones of significant SVS mineralisation from three CRL
drillholes, some of which contain elevated and potentially economic
mineralisation, WO(3) grades of 0.94% over 4.12m from 606.75m and 0.81% over
1.5m from 305.15m in CRD032, 0.55% WO(3) over 1.45m from 561.71m in CRD031 and
elevated Sn concentrations up to 0.25% over 1.39m from 552.55m in CRD032
(Table. 1, a). CRL has also identified mineralised extensions adjacent to
previously sampled zones. The Company believe that these results confirm that
there is further potential upside from this relogging project.

In addition to the identification of further SVS W-Sn-Cu-mineralisation,
different structures and zones of mineralisation have been sampled throughout
this re-logging and sampling process, resulting in the identification of
additional grading intersections within non-SVS structures, including copper
grades up to 1.19% Cu over 1.65m from 306.40m in CRD031 (Table 1, b).

Results also include zones of mineralisation which have returned promising
grades of copper (Cu) coupled with zinc (Zn) and silver (Ag), subject to
further test work during the resampling campaign, and a review of CRL and
historical datasets, there is potential to review the possibility of the
inclusion of other payable metals into a future modelling exercise and MRE
update.

Table 1: Highlights of sampled intervals returned from recently received
results showing interval lengths and subsequent assay results for WO(3)+Sn+Cu.

 (a)  Redmoor SVS Mineralised Intercepts
 DH I.D  Sample(s)                From    To      Interval* (m)  Cu %  Sn %  WO(3) %
 CRD031  CRL004366                561.71  563.16  1.45           0.14  0.01  0.55
 CRD032  CRL003809                305.15  306.65  1.50           0.05  0.00  0.81
 CRD032  CRL003820-22             561.24  565.76  4.52           0.08  0.05  0.19
         incl.                    562.35  564.30  1.95           0.02  0.04  0.33
 CRD032  CRL003839 + CRL003841**  606.75  610.87  4.12           0.08  0.04  0.94
 (b) Non-SVS Mineralised Intercepts
 CRD029  CRL004336                516.90  518.18  1.28           0.46  0.24  0.03
 CRD031  CRL004352                360.40  362.05  1.65           1.19  0.02  0.03
 CRD031  CRL003858                436.78  437.48  0.70           0.89  0.18  0.16
 CRD031  CRL003898                590.47  591.55  1.08           0.06  0.02  0.27
 CRD032  CRL003814                552.55  553.94  1.39           0.04  0.25  0.06

Notes:

* Sample intervals show downhole lengths of intercepts intervals and not true
widths.

** Sample CRL003840, not included in interval. This is a QAQC Sample.

Of these newly sampled intervals, four intercepts are above the cut-off grade
parameters used in the current Redmoor MRE (see: JORC 2012MRE in footnotes).
These mineralised structures will be studied further and integrated into the
Redmoor mineralisation model and evaluated for their continuity and economic
potential.

The re-logging, sampling and modelling of newly obtained and interpreted
geological data has improved the understanding of the Redmoor Deposit, with
better knowledge of the controls on tin and tungsten mineralisation along with
lode-style mineralisation that is independent of the main SVS hosted MRE.
Based upon these encouraging results from this initial batch of geochemical
assay results, CRL's geologists continue to undertake the re-logging and
sampling process and are continually refining and updating the Redmoor Deposit
model, with the objective of a future update to the Redmoor MRE. As part of
this future MRE update, the metal equivalents calculations will be reviewed,
this is both necessary to highlight the importance of tungsten to the project,
but also to fairly represent the increased commodity prices.

A second batch of 65 diamond drillcore samples from two further re-logged
drillholes were dispatched to ALS Laboratories, Loughrea, Ireland, at the end
of June. Additional samples for a third batch have been identified and are
being prepared for dispatch and analysis.

 

Completion of Additional Mineral Rights Agreement

Following CRL's recent announcement of a major new Mineral Rights agreement
with the Duchy of Cornwall (RNS dated 20 March 2024), CRL is pleased to
announce the signing of an additional mineral rights agreement, effective
August 2024, with a third mineral rights owner to lease certain mineral rights
in east Cornwall, including 546 hectares (5.46 km²) of His Majesty's Land
Registry registered mineral rights in the historically mined and highly
prospective Tamar Valley Mining District, within and around CRL's existing
exploration footprint. The terms of the exploration licence and lease require
CRL to pay an annual rent to the mineral rights owner, and subject to
conversion to a Mining Lease a net smelter return royalty on production of any
minerals recovered from the leased area.

These rights further strengthen CRL's mineral rights position within the area
and, including registered mineral rights, increase CRL's total mineral rights
operating area to 91.67 km². This agreement is for an initial exploration
period with a term of 5 years, with an option to renew for a further 5 years
if required and includes an option to convert to a Mining Lease(s) at any time
within the licence period, subject to necessary project milestones and
permission being in place. CRL also gains the right to aid in the registration
of additional mineral rights in east Cornwall, owned by the mineral rights
owner, and to add these to CRL's operating area.

Exploration activities will initially focus on continuing a low-cost,
high-impact, regional exploration and targeting program being undertaken
across CRL's licence areas.

Tamar Valley Licence Area- Local Engagement and Reconnaissance Programme

Exploration and reconnaissance mapping is continuing within the Tamar Valley
Licence Area (TVL), with numerous outcrop samples having been collected and
currently analysed as part of a study to assess the prospectivity of the
licence with respects to its numerous historical deposits and previously
understudied targets. A limited number of grab samples collected from a
mineralised outcrop were sent to ALS Laboratories, with one sample returning
1.72% Sn and 0.26% WO(3) and a second sample returning a grade of 1.19% WO(3)
(Table 2).

Table 2: Highlights of outcrop rock chip sampling in the TVL Area.

 Sample       Sample Type  Cu %  Sn %  WO3 %
 CRL24042301  Rock Chip    0.09  1.72  0.26
 CRL24042302  Rock Chip    0.00  0.01  1.19

 

 

 

CRL's geologists continue to review and evaluate historical data, along with
incorporating newly acquired data into exploration models and future
exploration pans. CRL is continuing to digitise and model geological and
geochemical data from the 'Plantation Vein' target that was previously drilled
between the late 1960s and early 1980s, and partially exploited between the
late 1950s and early 1960s.

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). SML bought into CRL in
2016, and in 2019 completed the purchase of the project. CRL is focussed on
advancing the high-grade, underground Redmoor Tungsten-Tin-Copper Project,
through a current relogging and sampling campaign of CRL drillcore, and work
towards securing further funding to advance Redmoor, as well as exploring its
significant and highly prospective minerals rights licence areas in east
Cornwall, Southwest England.

CRL through mineral rights agreements, with Redmoor Minerals Limited, The
Duchy of Cornwall, and a third mineral rights owner, has exclusive access to a
mineral rights operating area of 91.67 km² in the highly prospective and
historically mined Tamar Valley Mining District. CRL is undertaking regional
and targeted exploration activities to develop critical minerals resources.

The Redmoor Project is situated within the historically significant Tamar
Valley Mining District, yet the sheeted vein system ("SVS") which forms the
basis of CRL's inferred resource is unmined. 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 drillholes 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% 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

Subject to receipt of necessary funding, CRL has in place all necessary
permissions for drill programs for further significant exploration of the
Redmoor Tungsten-Tin-Copper resource.

 

Competent Person Statement:

Information in this announcement pertaining to Reporting of Sampling
Techniques and Data and Exploration Results has been reviewed and approved by
Mr James McFarlane, BSc (Hons), MSc, MCSM, CGeol FGS, FNEIMME, CEng QMR FIMMM,
RPGeo MAIG, FIQ . Mr McFarlane holds a BSc with Honours from The University of
Wales, Aberystwyth in Environmental Earth Science and an MSc in Mining Geology
from Camborne School of Mines, University of Exeter, he is also a Master of
the Camborne School of Mines (MCSM). Mr McFarlane is a Fellow and Chartered
Geologist with the Geological Society of London (CGeol FGS), a Chartered
Engineer (CEng) and Fellow of the Institute of Materials, Minerals and Mining
(FIMMM) through which he is also Qualified for Minerals Reporting (QMR). Mr
McFarlane is a Member of the Australian Institute of Geoscientists (MAIG), and
through which is Registered Professional Geoscientist in the joint fields of
Mining and Mineral Exploration (RPGeo). Mr McFarlane is also a Fellow of the
Institute of Quarrying (FIQ). Mr McFarlane is General Manager for Europe,
Middle East and Africa for Mining Plus UK Limited and has been retained by the
Cornwall Resources Limited to provide independent technical support. Mr
McFarlane 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 by the 2012 Edition of
the Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (the JORC Code) and under the AIM Rules.

-       Note for Mining and Oil & Gas Companies, which outline
standards of disclosure for mineral projects. Mr McFarlane consents to the
inclusion in this announcement of the matters based on this information in the
form and context in which it appears. Mr McFarlane confirms that the Company
is not aware of any new information or data that materially affects the
information included in the relevant market announcements, and that the form
and context in which the information has been presented has not been
materially modified.

 

 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:
                              https://www.strategicminerals.net
(https://www.strategicminerals.net)

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 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.

 

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