Redmoor Update

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

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		[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. 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.

 

END

 

 

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