Lodgement of additional PEPR at Leigh Creek

RNS Number : 0731L

Strategic Minerals PLC

29 December 2022

 

29 December 2022

Strategic Minerals plc

("Strategic Minerals" or the "Company")

Lodgement of PEPR for treating transitional ore at Leigh Creek Copper Mine

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable producing mineral company , is pleased to announce that its wholly owned subsidiary, Leigh Creek Copper Mine Pty Ltd ("LCCM"), has today lodged, with South Australia's Department of Energy and Mining ("DEM"), an application for a new Program for Environmental Protection and Rehabilitation ("PEPR") relating to planned mining at Paltridge North.  This is being sought as part of LCCM's expected 2023 re-opening of operations at Mountain of Light at Leigh Creek, subject to funding.

The new PEPR encompasses much of the information in the previous PEPR plus additional information DEM required in relation to the treatment of transitional ore expected to be mined as the planned pit reaches greater depth.  Accordingly, it is not expected that approval of this PEPR will be as protracted as was the case with the previous, now approved, PEPR.

Negotiations on planned funding of the restart of production are at an advanced stage with a party who has extensively accessed the Company's data room and visited the LCCM site. However, it is stressed that, at this time, no binding arrangements have been entered into and there can be no certainty that such arrangements will be entered into.

Commenting, John Peters, Managing Director of Strategic Minerals, said:

"Lodgement of the PEPR for treatment of transitional ores at Paltridge North represents the next step in the expected re-opening of operations at Mountain of Light in 2023, subject to funding. It is expected that this PEPR's approval will be achieved in a time frame that is within the planned mining critical path.

"While no binding arrangements have been entered into yet, our dealings with a party during the December quarter are very encouraging and the Company hopes to be able to convert this into a binding arrangement early in 2023.

"Although the time taken to get to this point has been frustrating, the Board now considers it highly likely, subject to finance, that operations will recommence in 2023 and we are encouraged by the rebound in the copper price to around US$4lb."

For further information, please contact:
Strategic Minerals plc		[phone]
John Peters
Managing Director
Website:	www.strategicminerals.net
Email:	[e-mail]
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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 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 September 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 September 2022, an updated PEPR, addressing the conditions associated with the July 2021 approval, was approved.

 

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