Redmoor project update.24 Aug 2020 13:15
24 August 2020
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Redmoor Project Update
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, provides an update on progress at its Redmoor Tin and Tungsten project held by the Company's wholly owned subsidiary Cornwall Resources Limited ("CRL").
SML has appointed London-based Natural Resources Global Capital Partners Limited ("NRG") to provide strategic and financial advice regarding advancing the Redmoor Tin and Tungsten project. NRG is an independent advisory firm and merchant bank focused on the global metals and energy industries.
NRG has undertaken an encouraging initial review of the project and is focusing on the inherent value and how best to demonstrate this to potential joint venture partners. Theoretical analysis has identified that a revised mining schedule, focussed on initially targeting the higher-grade material identified in the latest drilling programme, may offer the potential for a superior IRR, enhancing project economics and improving the attractiveness of the project to potential investors.
In order to confirm the results of the internal revisions, CRL has engaged mining consultants Wardell Armstrong International ("WAI"), who undertook the scoping level underground mining study described in the Company's announcement on 16 May 2019. WAI will carry out work to optimise the mining schedule and mine engineering model, as well as mining costs, with a new focus on the identified opportunity to access high grade ore early in the life of the planned mine.
This is expected to result in an updated financial model demonstrating a superior IRR. This work is expected to complete at the end of September, following which the Company will update the market accordingly.
Commenting, Peter Wale, Executive Director of Strategic Minerals and Director of CRL, said:
"We are privileged to be working with NRG and are heartened by their enthusiasm for the Redmoor project and their recognition of value in, what the Board considers, a significant company asset.
"As international emphasis continues to shift towards securing critical minerals supply, having a source of tin and tungsten in Cornwall is expected to prove of even greater strategic importance in the future. As a result, we continue to see interest in Redmoor from investors who understand the globally significant potential of the project. We look forward to informing the market of the results of the updated analysis upon completion of Wardell Armstrong's review."
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