Completion of Deep Digital Cornwall Project

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.

About Cornwall Resources Limited:                                                   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)	WO3 %	Sn %	Cu %	Sn Eq1 %	WO3 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 Resource	11.7	0.56	0.16	0.5	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

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		[phone]
John Peters
Managing Director
Website:	www.strategicminerals.net
Email:	[e-mail]
Follow Strategic Minerals on:
Vox Markets:	https://www.voxmarkets.co.uk/company/SML/
Twitter:	@SML_Minerals
LinkedIn:	https://www.linkedin.com/company/strategic-minerals-plc
SP Angel Corporate Finance LLP		[phone]
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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