Redmoor - Deep Digital Cornwall Update

RNS Number : 3533Z

Strategic Minerals PLC

14 September 2022

 

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Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

14 September 2022

Strategic Minerals plc

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

Redmoor Update

Deep Digital Cornwall Datasets General Release

Soil samples indicate significant Tin-Tungsten mineralisation trends near surface

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable producing mineral company, is pleased to announce that its wholly owned subsidiary Cornwall Resources Limited ("CRL") has today released the first data from the 'Deep Digital Cornwall' project ("DDC"). DDC is led by the University of Exeter's Camborne School of Mines ("CSM"), in which CRL and Cornish Lithium Ltd are delivery partners. DDC is funded by the European Regional Development Fund ("ERDF"), through HM Department for Levelling Up, Housing and Communities ("DLUHC").

Highlights:

· New areas of mineral prospectivity for Tin and Tungsten, within the Company's license area to the west of Redmoor, identified in DDC soil sampling results being released to the public .

· Tin, including 1% Sn (10,000ppm), or 1.06% Sn(Eq) in soil sample DDC001275, found in mineralised trend A and includes potentially significant results for further follow-up.

· Likely presence of two subsurface granite upwellings identified in Reid Geophysics' 3D model interpretation of the granite body and accompanying reports.

· DDC project entering the second, and final phase.

· CRL's datasets for Phase 1 have been provided to CSM for storage and use by SMEs, researchers and for open access.

· Phase 1 saw a total of 1,702 soil samples collected alongside 910 gravity survey points .

· CRL continues work on Phase 2 to maximise the grant funding to develop high-quality datasets that will benefit CRL's operations.

· CRL is hosting local presentations this week, updating local community members and landowners on the DDC data collected within the area, and plans for Phase 2.

· Phase 2 of the DDC data collection will see the completion of soil sampling, targeting infill around soil and gravity anomalies and likely new aerial and drone surveys to complement existing datasets.

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

Through DDC grant funding, CRL has used the Redmoor exploration license area as a field laboratory for the collection of geochemical and geophysical data. The results to date improve CRL's understanding of the granite body below the license area and, when combined with the soil sampling results, highlight significant mineral prospectivity in the wider license area. Further DDC fieldwork is planned to test these results, helping CRL in identifying targets for future exploration.

Phase 1 Soil Sampling - Fieldwork and Results

Using the method trialled in the close-spaces auger sampling in Target Tip Valley ("TTV") (reported 28 September 2021), CRL conducted Phase 1 of the DDC soil sampling campaign. Samples were initially planned on 400m spaced lines, orientated perpendicular to the dominant mineralisation trends, with samples spaced every 10m. Lines were modified to avoid infrastructure and to best fit available land access. This survey is the highest detailed soil sampling campaign completed within the area to date and significantly adds to the understanding of the mineralisation present within CRL's license area.

CRL's field team collected 1,702 Phase 1 soil samples from August 2021 to January 2022 (see Appendix A, Figure 2: Location Map). Samples were shipped to ALS Minerals 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 May 2022.

Soil samples were expected to contain lower overall metals content compared to those around the Redmoor resource and TTV, due to the presence of unmineralized geology overlying a large section of the sampling area. However, following receipt and mapping of laboratory results, soil anomalies containing significant metal content above background levels were noted with noticeable trends across sample lines indicating the potential presence of mineralised structures (see Appendix B, Table 1which includes several highlights).

Following receipt of the soil sample results, a research project was undertaken over a three-month period from June - August 2022. This project included modelling and interpretation of the combined results of the gravity survey and the soil sample results, and included knowledge of geology, mineralisation styles of the area and combined data from previous studies, to produce Minerals Prospectivity Maps ("MPM") of the Redmoor License area (Figure 1).

Figure 1: Minerals Prospectivity Map of the Redmoor license area covered by DDC soil samples. (A) Elevated Sn-W-Cu anomalies, (B) Elevated SN-W anomalies and (C) Elevated SN-W-CU anomalies. A and B represent trends consistent with the lode and SVS mineralisation at Redmoor, and C represents higher values associated with two modelled granite upwellings ("MGU").

The MPM map shows areas of higher and lower prospectivity for mineralisation (red are higher / blue are lower). Increased potential mineralisation has been noted around the modelled granite upwellings and along two near East-West trending zones, consistent with soil anomalies. These zones follow a similar alignment to the lodes and sheeted vein systems ("SVS") found at and around Redmoor. Zones A, B and C contain elevated Tin, Tungsten and Copper anomalies in the soil samples collected.

Ground Gravity Survey - Fieldwork and Results

A ground-based gravity survey of the Redmoor area was completed by CRL field staff over the period of August - December 2021. Reid Geophysics Ltd supervised the collection of data and completed Quality Assurance/Quality Control checks, and all modelling and interpretation of the results. Following completion of the survey, Astute Geosciences, working with Reid Geophysics, completed a 2D reinterpretation of the geology of the survey area, reinterpreting several faults and indicating the likely presence of two subsurface granite upwellings. In addition to interpretation and modelling the gravity data, Reid Geophysics recently completed a 3D model interpretation of the granite body below Redmoor and accompanying reports.

This new model is a significant improvement on the knowledge of the potential size, shape, and nature of the granite body. The modelled presence of two subsurface granite upwellings, when combined with the DDC soil sampling results, highlights the potential for new mineralised systems to the west of Redmoor (Figure 2) providing a favourable locale for mineralisation similar to those known elsewhere in Cornwall. These will be investigated through further exploration work programs.

Figure 2: shows the location of the soil samples in relation to the Redmoor JORC (2012) compliant Resource (11.7mt @ 1.17% Sn (Eq)) and other examples of historical mining. The newly modelled granite upwellings between Redmoor and the soil samples suggest further potential for mineralising systems to the west with the soil sampling results and MPM highlighting this potential. This data will be available as a DDC data output

The granite model and associated reports are now available via the DDC Hub for further research and use by SMEs. This model provides the DDC Hub with a significant 3D model, with which to highlight the Hub's use as a geological repository for the Southwest, an area highlighted by the UK Government's Critical Minerals Strategy (published in July 2022) as a key location for Critical Minerals and associated knowledge.

Following completion of Phase 1 of the research project in September 2022, datasets and reports are now being made available via the DDC Hub, based on the Penryn Campus at CSM. These will be available to SMEs, researchers and for general access in line with the DDC data policy.

CRL is hosting local presentations, this week updating local community members and landowners on the DDC data collected within the area, and plans for Phase 2 of the DDC project work.

Ongoing DDC Work Plan

CRL continues to progress the DDC fieldwork. Phase 2 of soil samples began in June 2022, alongside the research project. The DDC budget allows for a total of 2,500 soil samples to be taken and analysed, therefore Phase 2 will consist of 798 soil samples. These samples will target soil anomalies and trends of high minerals prospectivity highlighted above (Figure 2). Sampling is expected to be complete shortly, with samples shipped to ALS Minerals Loughrea and analysed before the end of the 2022. Results from Phase 2 will be used to update the MPM model and to target future investigations.

CRL intends to complete drone-based surveys of a section of the license area in Q1 and Q2 of 2023, and participate in a DDC-funded aerial survey, covering DDC Partner areas of interest.

Planned Drilling

CRL continues preparation for a drill program, in the TTV, to test at depth previously reported high-grade auger and trenching results (as reported 17 November 2021). A General Permitted Development Order application, for necessary consents, was approved by Cornwall Council. Drilling has been delayed into 2023 due to a shortage of available drill rigs. Drilling is expected to consist of four drillholes, to test both the reported tin target and the potential westward continuation of the Redmoor Sheeted Vein System orebody.

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

"These DDC datasets provide welcome confirmation that mineralisation likely continues to the west of Redmoor and the Target Tip Valley (TTV). Historically, this area has been under-explored and unmined and provides likely targets for further future investigation and exploration.

"CRL's experience at Redmoor has indicated that grades often increase significantly at depth, as the source granite is approached. A new granite model, developed from the DDC gravity survey, showing that the granite likely rises closer to surface to the west of TTV is therefore encouraging and provides the potential to expand on the existing resource for what the UK Government now defines as Critical Minerals, such as Tin & Tungsten at Redmoor.

"CRL intends to continue to maximise its DDC grant funding to produce high-quality datasets that will increase confidence at Redmoor and that will be available for others to research via the DDC Hub. We believe this data is a good example of what can be achieved, through low-cost Government initiatives, to de-risk exploration for Critical Minerals in the UK.

"The 2023 expected drill program will utilise the data produced in the DDC datasets to pursue exploration of depth extensions of the TTV target and the potential for a westward continuation of the existing Redmoor 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.

About Deep Digital Cornwall

In 2019, CRL, along with other industry delivery partners, joined the 'Deep Digital Cornwall' funding application, led by CSM, for funding from the European Structural & Investment Fund of the European Regional Development Fund. The application was made in response to a call aiming to promote research and innovation in Cornwall and the Isles of Scilly (Funding call: OC05R18P 0782).

The £4.1m Deep Digital Cornwall project, includes £3.3m of grant funding. CRL is now in the second and final year of project work. From the grant funding, CRL will, as a Delivery Partner, receive funding of up to £446,063, to facilitate the use of its Redmoor exploration licence area as a field laboratory. As part of the funding, CRL have in place a match fund of 20% (£111,516). Total DDC project expenditure at Redmoor is £555,579.

DDC aims to create a world-leading cluster of research-active, highly innovative businesses in Cornwall and the Isles of Scilly, applying digital solutions to a wide range of below ground and related business opportunities including mining and geothermal. DDC Project Partners will provide high quality datasets to the DDC Hub, at the Penryn Campus of Camborne School of Mines. DDC datasets will be available for SME, Researcher and Public Access as part of the data sharing agreement

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

Notes to Editors

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.

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 .

Appendix A - Soil sample and gravity survey station location maps

Figure 1: Ground gravity survey station locations. Samples were collected at 100m centres in the main area of the license, and 200m centres on the periphery. Samples were also taken within the public access area of Kit Hill.

Figure 2: Soil auger sample locations. Samples taken on pre-planned lines, at 10m spacing. Purple highlighted sections have been completed and form Phase 1 of the campaign.

Appendix B - selected soil sample laboratory results

Soil Sample no.	Easting	Northing	Sn %	Cu %	W %
DDC001275	231500.6	71376.08	1.00	0.01	0.04
DDC000738	234197.7	72394.58	0.38	0.01	0.13
DDC001270	231490.5	71431.39	0.27	0.01	0.02
DDC001376	232740.4	69942.36	0.26	0.01	0.01
DDC001374	232743.9	69922.66	0.18	0.01	0.02
DDC001375	232742.1	69932.61	0.16	0.01	0.01
DDC000739	234199.5	72384.78	0.16	0.01	0.06
DDC001372	232746.9	69902.48	0.14	0.01	0.01
DDC001271	231492.6	71421.56	0.14	0.01	0.01
DDC001274	231498.6	71388.37	0.12	0.01	0.01
DDC001373	232745	69915.28	0.10	0.01	0.01
DDC001371	232748.9	69892.95	0.10	0.01	0.01
DDC000115	234186.6	72106.3	0.08	0.01	0.02
DDC000740	234201.2	72374.91	0.07	0.01	0.03
DDC001370	232759.9	69884.63	0.07	0.01	0.01

Table 1: Selected soil sample results. DDC001275 includes 1% Tin within the soil sample for a 1.06% Sn(Eq).

Equivalent metal calculation notes; Sn(Eq)% = Sn%*1 + WO3%*1.43 + Cu%*0.40. WO3(Eq)%= Sn%*0.7+WO3%+Cu%*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.

 

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