Last checked at 5 Jan 2022 11:33
5 January 2022
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Leigh Creek Copper Mine
Revised PEPR Submitted
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable producing mineral company, is pleased to advise the market that its wholly owned subsidiary Leigh Creek Copper Mine ("LCCM" or the "Project") has today re-lodged the Project's Program for Environmental Protection and Rehabilitation ("PEPR") to the Department of Energy and Mining ("DEM") of South Australia addressing the conditional elements of the DEM's July 2021 approval.
The long lead time, in responding to the conditional PEPR approval, reflected the need to collect samples of cover for the waste rock dumps and the subsequent testing and analysis of this material in an erosion model to evaluate cover designs. This work was accelerated, as much as possible, by calling on existing networks and working closely with the consultants undertaking the work.
The other major component of the work was the evaluation of the Potential Acid Forming ("PAF") nature of the ore and waste rock. This required selecting and then collecting samples from the 2019 drilling program and undertaking Acid Rock Drainage and kinetic testing. In a boost for the Project, this work identified that the waste rock at Paltridge North has a low capacity to produce acid, and this low capacity PAF material can be co-disposed with run of mine waste, which has adequate neutralising capability.
This, version 9 of the PEPR, reflects the agreement arrived at early with DEM to submit this PEPR as a "oxide only" PEPR, with highlighted statements to easily adjust for the transitional ore case. The Company expects to receive DEM's approval for the oxide only case, which should cover the first 12+ months of production and then follow up with revision 10 of the PEPR, which will address only the additional mining of the transitional ore. The Company considers that this process will not impact the expected timing or economics for the Project, as previously disclosed to the market.
Commenting, Alan Broome AM, Non-Executive Chairman of Strategic Minerals, said:
"The Company has worked closely with the DEM and feels confident that its review of the submitted PEPR revision will be assessed in less than the maximum statuary requirement of three months.
"Whilst no guarantees can be provided, the Company is hopeful that, after this revision has been assessed by the DEM and subject to receipt of Project funding, it will be in a position to commence operations at LCCM."
For further information, please contact: | ||||
| ||||
Strategic Minerals plc | +61 (0) 414 727 965 | |||
John Peters | ||||
Managing Director | ||||
Website: | www.strategicminerals.net | |||
Email: | info@strategicminerals.net | |||
| ||||
Follow Strategic Minerals on: | ||||
Vox Markets: | https://www.voxmarkets.co.uk/company/SML/ | |||
Twitter: | @SML_Minerals | |||
LinkedIn: | https://www.linkedin.com/company/strategic-minerals-plc | |||
| ||||
SP Angel Corporate Finance LLP | +44 (0) 20 3470 0470 | |||
Nominated Adviser and Broker |
| |||
Matthew Johnson |
| |||
Ewan Leggat |
| |||
|
| |||
Notes to Editors
Strategic Minerals plc is an AIM-quoted, profitable operating minerals company actively developing projects tailored to materials expected to benefit from strong demand in the future. It has an operation in the United States of America along with development projects in the UK and Australia. The Company is focused on utilising its operating cash flows, along with capital raisings, to develop high quality projects aimed at supplying the metals and minerals likely to be highly demanded in the future.
In September 2011, Strategic Minerals acquired the distribution rights to the Cobre magnetite tailings dam project in New Mexico, USA, a cash-generating asset, which it brought into production in 2012 and which continues to provide a revenue stream for the Company. This operating revenue stream is utilised to cover company overheads and invest in development projects aimed at supplying the metals and minerals likely to be highly demanded in the future.
In May 2016, the Company entered into an agreement with New Age Exploration Limited and, in February 2017, acquired 50% of the Redmoor Tin/Tungsten project in Cornwall, UK. The bulk of the funds from the Company's investment were utilised to complete a drilling programme that year. The drilling programme resulted in a significant upgrade of the resource. This was followed in 2018 with a 12-hole drilling programme and the resource update that resulted was announced in February 2019. In March 2019, the Company entered into arrangements to acquire the balance of the Redmoor Tin/Tungsten project which was settled on 24 July 2019 by way of a vendor loan which was fully repaid on 26 June 2020.
In March 2018, the Company completed the acquisition of the Leigh Creek Copper Mine situated in the copper rich belt of South Australia and brought the project temporarily into production in April 2019. The project has been granted a conditional approval by the South Australian Government for a Program for Environmental Protection and Rehabilitation (PEPR) in relation to mining of its Paltridge North deposit and processing at the Mountain of Light installation.