Member Info for Cornishknocker

How many holes have Cornish Resources drilled that haven't hit their target? The answer is 0, thats because the structural geology of the area is well understood. If you know the structural geology and you know how to drill you can't miss.

Hi Troajan, I don't know how well you understand the cornish Lode structures (Hydrothermal vein systems).

Typically a lode down here is between 0.6m and 10m in width, which will dip from horizontal from between 40 to 70 degrees, in a locality they generally dip in the same direction and strike in the same direction. (That is as a result of way they were placed).

The lode strike can persist for several kilometres and they can extend from surface to in the region of 1200m down dip.

If you were to take a sheet of A4 paper (in portrait) and draw a line from the top left corner to the bottom right corner and call that the lode; then draw a line from the top right corner to anywhere on the bottom or left hand side of the paper (call that the drill hole) you will see it is impossible to not intercept the lode, no matter how fine your pencil line.

In reality the structure will always be there (unless some later geological fault has caused it to move), the question is the valuable mineral content of the intercept, which may be barren or may be exceptionally rich - it can vary enormously over a short distance.

The reason tge deposits formed like this is if you imagine they original rock (devonian sediments) which were in place some 250 million years ago were disturbed by the formation of the Cornubian granite batholith, wich was an igneous intrusion from below. In some areas that intrusion found a weakness that allowed the granite to push through to surface (Kit hill in this case), as it pushed through it caused tension cracks in the sediments (which were metamorphosed), radiating (in Camborne where a long ridge was formed, these cracks run parallel with the ridge) out from where the magma pushed through. Hydrothermal fluids containing the minerals then flowed into these tension cracks, as the fluid solidified, the lides were formed.

I expect a geologist would rip that description apart - the overall ore genesis in Cornwall is pretty complex, buy that is it simply.

No you aim to drill perpendicular to the lode, you're pretty much uaranteed to hit it

Troajan, thats pretty much it, it can increase or decrease the tonnage by a relatively small amount, basically depending on intercept widths. To significantly increase the tonnage, we would need to drill tge Western extension - there is little point though as we gave enough tonnes for over 8 years, any production beyond that time frame would have a negligible effect on NPV, unless we wanted to increase annual production, but tge suze of the mine would required would probably not support that.
You can't used an inferred resource for a DFS, so more drilling has to happen.

At present Covid is a non event in Central Nefoundland and Labrador, which is the area where the mine is located. In terms of area, it is about half the size of England and since the start of the pandemic they have had 35 cases with 1 at present.

No problem

NPV is calculated from tge initial decision to build a mine.

Exploration costs aren't included as every drill should add to the value

To go from inferred to indicated to measured ultimately means more drilling to close up the hole spacings, to increase the confidence.

Ah Wolf - that was an example of an Aussie miner who thought they knew best and failed to adequately understand the ore body.

Interestingly its in tge process of reopening at the moment, the mill is currently being reconfigured.

A few years ago the tungsten price was pushing $400, which would increase the tungsten value by 60% (Nearly $1 billion), giving a total value of $3.38 Billion or a Sn equivalent of 1.31%

The Sn Equivalent is a bit of an artificial construct, to get to that you take the value of all the metals and then convert that to the grade it would be if it was all tin.

To explain it, we have 11.7Mt of ores worth a total of $2.47 billion.

If that was all Tin, there would $2.47 Billion at $22,000/tonne, means that there is the equivalent of 112,273 tonnes of tin in the 11.7MT@0.96% Sn. The problem with an equivalent grade is it changes every day with the metal prices - as you can see applying tge 1.17% figure with todays prices (Copper and tin are higher and tungsten is lower) gives an overestimate of the ore body value.

The in ground valuation takes no account of
Cap Ex, Op Ex or recovery.

Just for comparison the in ground valuation at South Crofty at present is $980 Million. Cornish Metals market cap is significantly larger than SMLs

Sorry I used 11.3MT not 11.7, increase all the numbers by 3.5% for a total valuation of $2.47 Billion

An in ground valuation at todays prices: - Tungsten $240/MTU, Tin $22,000/tonne and Copper $8000/tonne.

11.3MT @ 0.56%WO3, 0.16%Sn and 0.5% Cu.

63280 Tonnes WO3 ($1.52 Billion)
18080 Tonnes Sn ($416 Million)
56500 Tonnes Cu ($452 Million)

Total value of metal in ground (to date) $2.39 Billion

Lme stocks are dropping fast with just over 90,000T left, on that basis the Copper price is going to have to make a massive move up in a the next few days - unless some serious stock arrives, its got to be Heading for $10,000/t ($4.50/lb), which is quite frankly a licence for Rambler to print money.

https://www.miningcapital.com/companies/amp/news/938856

This isn't on AIM.

I just got a quote to buy - 0.47!

No offence was taken, I was having a laugh back