LONDON (Alliance News) - Strategic Minerals PLC said Friday it is to undertake further drilling at its Redmoor project in Cornwall, UK, at a cost of GBP332,000.
The tin, tungsten, copper project recently had an upgraded JORC inferred mineral resource estimate of 4.5 million tonnes at 1.0% tin equivalent. The drilling is expected to commence in June.
The "encouraging results" mean Strategic Minerals, and its joint venture partner New Age Exploration Ltd, have committed to a phased drilling programme of between 5,000 metres and 10,000 metres in total - with, an already funded, Phase 1 reaching depths 4,000 metres.
The drilling programme will focus on "confirming and expanding" the existing high grade mineral resource through drilling of the 4 to 6 million tonne exploration target. The drilling and assaying is expected to be completed in 2018.
Managing Director John Peters said: "While undertaken at a high level, the independently conducted mining, processing and infrastructure studies have provided both the company and New Age Exploration with the confidence that a base mining proposal exists at Redmoor and that, subject to the identification of additional resources, investment grade returns can be achieved."
"The company is very encouraged by the results of the latter holes drilled in the 2017 drilling programme, most notably the increased grade at depth, and strongly believes that Redmoor will prove an attractive investment. Accordingly, the company has provided a firm commitment to fund up to GBP664,000 to the project this calendar year."
Shares in Strategic Minerals were down 2.3% to 1.49 pence each Friday.
Strategic Minerals (SML)