Last checked at 11 Dec 2017 07:00
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
11 December 2017
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Improved High Grade Intersections from Redmoor Phase 2 Drilling
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a diversified mineral production and development company, announces the results from the Phase 2 drilling programme at its Redmoor Tin-Tungsten Project in Cornwall, UK, undertaken through its joint venture vehicle, Cornwall Resources Limited ("CRL"). The Phase 2 drilling programme involved 5 holes which are the last results to be announced from the 2017 drilling programme (20 holes in total).
Key Highlights
· Successful intersection of high-grade zones within the Sheeted Vein System ("SVS") in all 5 Phase 2 drill holes.
· Considerably higher-grade intercepts than previously reported.
· 9 significant intercepts from SVS high-grade zones in the 5 Phase 2 holes. These average 8.4 m @ 1.34% SnEq, including 2.4 m @ 2.78% SnEq and contain peak grades up to 12.38% SnEq.
· Depth of SVS high-grade zones significantly increased by 180 m in hole CRD019
· Commencement of work on the resource update, targeted for release in Q1 2018.
· Positive results encouraging CRL to prioritize plans to achieve production status.
The completion of Phase 2 of the 2017 drilling programme at Redmoor has resulted in 20 drill holes over the term of the programme. The 5 Phase 2 drill holes were particularly impressive with these results continuing to build on and confirm the previously reported results from SVS high-grade zones. Further, the results demonstrate considerably higher grades than the average of previously reported significant intercepts (0.91% SnEq over 24 intercepts). As a result of Phase 2 drilling, the average of all 33 significant intercepts from SVS high-grade zones drilled to date (historic and CRL holes) has increased to 15.0 m @ 1.0% SnEq.
The Phase 2 hole CRD019, drilled 180m down-dip of known mineralisation, returned the best results of the programme (7.00 m @ 2.63% SnEq from 507.05 m, including 1.00 m @ 12.38% SnEq from 510.05 m) and shows these high grade zones to remain open at depth.
Twinned hole CRD020, drilled between two existing intercepts (approx. 100 m apart), successfully intersected SVS high-grade mineralisation, further improving confidence in continuity of the SVS high-grade zones.
These new results have significantly added to the confidence in the potential of the project to such an extent that CRL's joint venture partners, NAE and SML, are now seriously considering methods of expediting the project to production.
A more detailed description of results can be found in Table 1, following, and on the Company website http://www.strategicminerals.net/investors/presentations.html, under "Redmoor Phase 2 Drill Results".
Non-Executive Director of Strategic Minerals, Mr Peter Wale, commented:
"We are delighted by the Phase 2 drilling results, with every hole intersecting high-grade zones within the SVS and returning considerably higher grades than previously reported.
The potential for the resource size and grade to improve at depth has opened a substantial opportunity for the project, extending the depth of known mineralisation at Redmoor.
These results have encouraged us to further prioritize taking the project to production and we look forward to updating the market on this after completing the resource update during Q1 2018."
1 Competent Person's Statement
The information in this report that relates to Exploration Results is based on information compiled and reviewed by Dr Mike Armitage, who is a Principal Geologist of SRK Consulting (UK) Ltd, a Member of the Institute of Materials, Minerals and Mining (MIMMM), a Fellow of the Geological Society of London (FGS), a Chartered Geologist of the Geological Society of London (CGeol) and a Chartered Engineer, UK (CEng). Dr Armitage has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr. Armitage is also a Competent Person "as defined in the Note for Mining and Oil & Gas Companies which forms part of the AIM Rules for Companies". Dr Armitage has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears.
2 Forward Looking Statements
This report contains "forward-looking information" that is based on the Company's expectations, estimates and forecasts as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company's business strategy, plans, objectives, performance, outlook, growth, cash flow, earnings per share and shareholder value, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses, property acquisitions, mine development, mine operations, drilling activity, sampling and other data, grade and recovery levels, future production, capital costs, expenditures for environmental matters, life of mine, completion dates, commodity prices and demand, and currency exchange rates. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as "outlook", "anticipate", "project", "target", "likely", "believe", "estimate", "expect", "intend", "may", "would", "could", "should", "scheduled", "will", "plan", "forecast" and similar expressions. The forward-looking information is not factual but rather represents only expectations, estimates and/or forecasts about the future and therefore need to be read bearing in mind the risks and uncertainties concerning future events generally.
Notes:
1. The thicknesses quoted above, and all other thicknesses in this report are, unless otherwise stated, apparent thicknesses. Estimated true thicknesses are shown in Table 1.
2. For convenience, significant intercepts are also expressed in terms of a calculated tin equivalent value (SnEq). Equivalent metal calculation notes; Sn(Eq)% = Sn%*1 + WO3%*1.43 + Cu%*0.40. Commodity price assumptions: WO3 US$ 33,000/t, Sn US$ 22,000/t, Cu US$ 7,000/t. Recovery assumptions: WO3 recovery 72%, Sn recovery 68% & Cu recovery 85% and payability assumptions of 81%, 90% and 90% respectively.
3. All average grades in this report are estimated true thickness weighted-average grades. A minimum estimated true thickness x SnEq threshold of >= 4.0 has been applied to the selection of significant intercepts, including to the selection of historic and CRL drilling significant intercepts previously reported on 7 September 2017 and 1 November 2017, for the purposes of calculation of average thicknesses and grades.
Table 1 CRL 2017 Drilling significant intercepts for Phase 2 Drill Holes (CRD016 - CRD020)
Drillhole | From(m) | To (m) | Intersection Thickness(m) | Est. True Thickness(m) | SnEq(%) | Sn(%) | W03(%) | Cu(%) | Intercept |
CRD016 | 292.35 | 305.51 | 13.16 | 10.21 | 0.99 | 0.02 | 0.58 | 0.35 | HG SVS |
Incl | |||||||||
CRD016 | 292.35 | 299.22 | 6.87 | 5.59 | 0.87 | 0.02 | 0.47 | 0.47 | HG SVS |
Incl | |||||||||
CRD016 | 292.35 | 293.88 | 1.53 | 1.23 | 2.77 | 0.03 | 1.59 | 1.18 | HG SVS |
And | |||||||||
CRD016 | 304.50 | 305.51 | 1.01 | 0.77 | 6.07 | 0.01 | 4.21 | 0.09 | HG SVS |
CRD017 | 182.61 | 194.95 | 12.34 | 8.85 | 0.93 | 0.19 | 0.35 | 0.62 | HG SVS |
Incl | |||||||||
CRD017 | 182.61 | 189.45 | 6.84 | 5.15 | 1.23 | 0.30 | 0.42 | 0.82 | HG SVS |
CRD018 | 357.17 | 370.17 | 13.00 | 8.41 | 1.19 | 0.08 | 0.43 | 1.24 | HG SVS |
Incl | |||||||||
CRD018 | 358.17 | 359.17 | 1.00 | 0.77 | 9.39 | 0.20 | 3.42 | 10.73 | HG SVS |
And | |||||||||
CRD018 | 365.17 | 367.17 | 2.00 | 1.33 | 1.37 | 0.07 | 0.81 | 0.35 | HG SVS |
CRD019 | 457.10 | 471.10 | 14.00 | 12.61 | 1.14 | 0.04 | 0.67 | 0.33 | HG SVS |
incl. | |||||||||
CRD019 | 457.10 | 458.10 | 1.00 | 0.94 | 2.09 | 0.07 | 1.23 | 0.67 | HG SVS |
And | |||||||||
CRD019 | 465.10 | 471.10 | 6.00 | 5.32 | 1.98 | 0.03 | 1.29 | 0.28 | HG SVS |
CRD019 | 507.05 | 514.05 | 7.00 | 4.82 | 2.63 | 0.01 | 1.79 | 0.17 | HG SVS |
incl. | |||||||||
CRD019 | 510.05 | 511.05 | 1.00 | 0.71 | 12.38 | 0.01 | 8.58 | 0.26 | HG SVS |
CRD020 | 298.13 | 301.13 | 3.00 | 2.83 | 2.62 | 1.55 | 0.06 | 2.45 | HG SVS |
CRD020 | 320.12 | 328.62 | 8.50 | 7.83 | 0.55 | 0.09 | 0.23 | 0.32 | HG SVS |
CRD020 | 354.76 | 358.76 | 4.00 | 3.72 | 1.09 | 0.57 | 0.15 | 0.75 | HG SVS |
Incl. | |||||||||
CRD020 | 354.76 | 355.76 | 1.00 | 0.93 | 3.18 | 2.15 | 0.09 | 2.27 | HG SVS |
CRD020 | 365.57 | 366.57 | 1.00 | 0.96 | 9.88 | 0.02 | 6.79 | 0.37 | HG SVS |
For further information, please contact:
Strategic Minerals plc | +61 (0) 414 727 965 | |
John Peters | ||
Managing Director | ||
www.strategicminerals.net | ||
Follow Strategic Minerals on: | ||
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SP Angel Corporate Finance LLP | +44 (0)20 3470 0470 | |
Nominated Adviser and Broker | ||
Ewan Leggat
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Yellow Jersey | ||
Charles Goodwin | +44 (0)7747 788 221 | |
Julia Kalcheva | +44 (0)7880 318 276 | |
Joe Burgess | +44 (0)7769 325 254 | |
Henry Wilkinson | +44 (0)7951 402 336 | |
Notes to Editors
Strategic Minerals Plc is an AIM-quoted, diversified mineral development and production company with projects in the United States of America, the UK and Australia. The Company is focused on acquiring and developing cash generative, high quality projects which meet local market demand for commodities and utilising this cash flow to undertake value added exploration.
In September 2011, Strategic Minerals purchased its first cash-generating asset; the Cobre magnetite tailings dam project in New Mexico, USA which it brought into production in 2012 and which continues to provide a revenue stream for the Company. The portfolio was expanded in January 2016 with the acquisition of shares in Central Australian Rare Earths Pty Ltd, which holds tenements in Western Australia and the Northern Territory that are prospective for cobalt, gold, nickel sulphides and rare earth elements. The Company has since acquired all shares in Central Australian Rare Earths Pty Ltd. In May 2016, an additional exploration asset was acquired when the Company entered into an agreement with New Age Exploration Limited to acquire up to 50% of the Redmoor Tin/Tungsten project in Cornwall, UK. This 50% acquisition has now been completed and drilling at the project has commenced. The Company is also currently in due diligence in relation to the acquisition of the Leigh Creek Copper Mine situated in the copper rich belt of South Australia.