REG - Strategic Minerals - Redmoor Update

Strategic MineralsAnnouncement

17/11/2021 07:05

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20211117:nRSQ6041Sa&default-theme=true

RNS Number : 6041S  Strategic Minerals PLC  17 November 2021

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 as imported into the laws of England and Wales by virtue of
the European Union (Withdrawal) Act 2018 (as amended) and certain other
enacting measures ("UK MAR"). With the publication of this announcement via a
Regulatory Information Service ("RIS"), this inside information is now
considered to be in the public domain.

17 November 2021

Strategic Minerals plc

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

 

Redmoor Update

More High-Grade Tin Results in Redmoor West Pit Sampling

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable producing
mineral company, is pleased to announce that its 100% owned subsidiary
Cornwall Resources Limited ("CRL") has identified further significant
high-grade tin in four pit samples taken to the west of its main Redmoor
deposit ("Redmoor" or the "Project") as a follow up of positive close-spaced
auger sampling reported on 28 September 2021.

Highlights:

·    Significant, at or near surface, tin result in pit CRT04, peaking at
0.68% tin.

·    All four pit samples taken showed confirmed in-situ mineralisation.

·    Reinforces previous trenching and auger results identifying
attractive exploration targets.

·    Updated internally estimated Project economics now show a large
uplift in NPV8 to US$163m with a 33.1% IRR.

A PDF of this release, including all maps and images referenced, can be found
on the Company website at
https://www.strategicminerals.net/investors/presentations.html
(https://www.strategicminerals.net/investors/presentations.html)

Exploration and Results

Following previous close-spaced auger sampling results (reported 28 September
2021), CRL conducted a short program of hand-excavated pits on identified
'Target B' to verify the geology ahead of potential future drilling.

Two pits were excavated, and both were channel sampled. Hand pitting was
utilised due to steep terrain. Four samples were taken which were analysed by
ALS Laboratories Loughrea using method ME-MS89L*.

 Pit    Sample no.  From (m)  To (m)  Interval (m)  Sn %  Cu %  W %
 CRT04  CRL003618   0.00      1.00    1.00          0.68  0.03  0.05
 CRT04  CRL003619   1.00      2.00    1.00          0.27  0.06  0.03
 CRT04  CRL003620   2.00      2.60    0.60          0.43  0.04  0.04
 CRT05  CRL003621   0.00      1.00    1.00          0.17  0.04  0.01

 

The pits contain decomposed shale, with blocky vein-style quartz fragments
containing clasts of wall-rock, in the pit base. The results above confirm the
presence of in-situ mineralisation, which is considered by CRL to constitute a
strong tin exploration target. The CRT04 result with a 2.6m interval averaging
0.46% tin, 0.04% copper and 0.04% tungsten, is a clear example of
mineralisation near-surface.

Future Exploration Targets

CRL is currently evaluating a potential 2022 exploration program to test this
highly prospective target's depth. Exploration of this tin target and adjacent
areas, is intended to verify the projected westward continuation of the
Redmoor Sheeted Vein System (SVS) orebody. If confirmed, this has the
potential to increase the proportion of tin, and total tonnage of a future
resource. The proximity of the exploration area to surface is likely to
enhance project economics. The present status of the deposit is as a Mining
Scoping Study based on Inferred Resources. Higher category resources are yet
to be defined.

The Company is currently in discussions with parties about asset level funding
of future exploration and this is the preferred approach. Interest in the
Project has been increasing recently as metal prices for tin, copper and
tungsten remain strong.

Project Economics Update

Current resource prices are close to, or significantly exceed, the levels
previously employed in the Company's 16 May 2019 and 6 October 2020 RNS
announcements on internally estimated Project economics. The following table
highlights the resource price assumptions employed in the Company's
announcements and current prices along with the expected impact on key
financial measures. Shareholders should note that these assumptions have not
been independently verified:

                                     RNS 16 May 2019  RNS 6 October 2020  Current Pricing
 Tin (Sn) Price Assumption /t        US $22,000       US $22,000          US $37,660
 Tungsten (W) Price Assumption /mtu  US $330          US $330             US $313
 Copper (Cu) Price Assumption /t     US $7,000        US $7,000           US $9,748
 Project IRR                         19.4%            28.6%               33.1%
 Project After Tax NPV at 8%pa       US $91m          US $128m            US $163m

 

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

"These pit samples provide an important in-situ confirmation of the
mineralisation identified earlier in the year at Redmoor West. This bodes well
for further exploration as CRL's experience to date at Redmoor suggests that
grades often significantly increase at depth and when approaching the granite
source.

 

"Accordingly, to find tin grades of this tenor close to surface is very
encouraging both for Project economics and for the resource tin/tungsten mix.

 

"CRL is currently formalising its next exploration plans to explore the depth
extensions of this target and of the potential for a westward continuation of
the main Redmoor (SVS) orebody."

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.

* ALS Laboratories ME-MS89L Super Trace method combines a sodium peroxide
fusion with ICP-MS instrumentation utilising collision/reaction cell
technologies to provide the lowest detection limits available.

 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:

Strategic Minerals plc is an AIM-quoted, profitable operating minerals
company. It has operations in the United States of America and Australia along
with a development project in the UK.  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 the Board considers likely
to benefit from future supply and demand factors.

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 progressing the Company's development
projects.

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

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 into production in April 2019.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DRLDKABBKBDBBDD