(Alliance News) - Cornish Metals Inc shares rose on Tuesday as it announced that work is "well advanced" on an important assessment for its South Crofty project.
Cornish Metals shares rose 11% to 8.14 pence each in London on Tuesday afternoon.
Cornish Metals said that the preliminary economic assessment for the South Crofty tin mine is on track to be completed in the second quarter of 2024, alongside tin prices increasing for the first time in more than a year.
The Vancouver-based mineral exploration company is primarily focused on the South Crofty project in Cornwall, England, a historical tin mine that was in use for over 400 years before its closure in 1998.
Cornish Metals said it hopes to construct new processing facilities as well as obtain an environmental permit to be able to dewater the mine, and access its store of the fourth-highest grade tin mineral resource globally.
Its refurbishment of the 'new cook's kitchen' shaft in the mine is underway, with two winders and cages now installed and certified to allow the safe transportation of equipment and workers.
Dewatering efforts are maintaining the water levels of the 'new cook's kitchen' shaft approximately 280 metres below surface, discharging the treated water to the Red River in line with guidance from the Environment Agency.
The company reported that tin price has risen above UDS30,000 per tonne for the first time in over a year, by over 25% in the year-to-date and is outperforming other base metals. This is "mainly reflecting ongoing supply disruptions amid an expected improving demand outlook", Cornish Metals added.
Cornish Metals Interim Chief Executive Officer Ken Armstrong said: "Work is well advanced on the South Crofty preliminary economic assessment, which remains scheduled for delivery this quarter. The project team continues to advance mine dewatering and 'new cook's kitchen' shaft refurbishment, ventilation shaft and process plant design work, and stakeholder engagement and outreach in support of a future feasibility study and potential construction decision.
"The timing of this important work coincides with a strengthening tin price, which reached over USD30,000 per tonne this past week, and an emerging recognition of tin as a critical metal by the United Kingdom and other national governments.
"Combined with the fact that there is presently no primary tin production in Europe or North America, these factors strongly support our thesis to fast-track work to, if feasible, responsibly bring the South Crofty tin mine back into production to the benefit of Cornwall, the United Kingdom and other stakeholders."
By Emily Parsons, Alliance News reporter
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Cornish Metals. (CUSN)