LONDON (Alliance News) - Miner Strategic Minerals PLC said on Wednesday its joint venture partner New Age Exploration Ltd has funded 50% of the development costs of phase one of the Redmoor tin tungsten project in Cornwall, UK.
As a result, phase one of the 2018 drilling programme has started and is aimed at extending the Redmoor High Grade Inferred Resource within the broader sheeted vein system.
Two holes have been completed in the seven-hole programme, with two further holes underway. Both holes drilled have shown encouraging tungsten mineralisation.
Phase one drilling is expected to be completed in early October, slightly ahead of schedule, and results from the full programme are expected to be available in November.
Also, in September Strategic Minerals' joint venture partners are expected to come to a decision on drilling phase two of the programme for eight holes, which is aimed at extending the Redmoor high-grade resource.
"I am extremely pleased with the steady progress being made at Redmoor. The preliminary results from the first two holes, the funding from our JV partner and the receipt of research and development tax relief all bode well for the future of the project,"said Managing Director John Peters.
"The 2018 drilling programme is designed with the expectation of delineating a sufficient resource to justify proceeding to a prefeasibility study in 2019. While the board and management consider that the Redmoor project represents significant value, it believes that the provision of the prefeasibility study will provide the necessary basis for the market to appropriately value this asset," Peters added.
Shares in Strategic Minerals were up 5.6% at 1.42 pence on Wednesday.
Strategic Minerals (SML)