Last checked at 18 Jun 2015 07:00
18 June 2014
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Maiden Tatu Project JORC Resource Estimate
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), the diversified mineral development and production company, is pleased to announce the results of a maiden JORC resource estimate at its Tatu Project in the North Island of New Zealand. The independent estimate conducted by Gordon Geotechniques Pty Ltd showed the following key findings:
· 6.72 Mt of measured and indicated thermal coal estimated at the Tatu Project
· High certainty of estimate with 75% of JORC resource classified as measured
· Resource accessible at surface with a 2 to 5 degree seam dip
· Coal quality demonstrates an average energy value of 24.36 MJ/kg (GAR)
· Coal seam thickness of at least two metres
Classification | Tonnes (Mt) |
Measured | 5.03 |
Indicated | 1.69 |
Total | * 6.72 |
* The Company currently has an interest of 51% in the resource through its 51% ownership of King Country Mining Ltd ("KCM") and anticipates acquiring the balance of KCM in the next quarter of this year.
The Tatu Project is a permitted mine situated in the North Island of New Zealand which is a net importer of thermal coal. A number of potential customers for the Tatu product have been identified on the North Island and the Company will be looking to complete a bulk sample from the mine in the next quarter of this year to confirm the quality of coal for these customers. In addition, the Company is progressing a detailed mine plan and feasibility study to support development of the mine.
Chairman of Strategic Minerals, Mr John Peters, commented: "The maiden JORC resource estimate of the Tatu Project indicates significant quantities of coal to support our feasibility study which is targeting production of at least 200,000 tonnes per annum. After applying typical bord and pillar recoveries of 60%, the Tatu Project would be expected to have 20 years run of mine life at the minimum targeted production. Particularly pleasing is that 75% of the resource is classified as measured under the JORC code which is the highest certainty category of a resource. The Tatu Project is progressing well and Strategic Minerals is still on track to meet its target of first thermal coal sales in the first half of 2016."
Qualified Person's Statement
Gordon Geotechniques Pty Ltd consultant, Mr Nick Gordon (Chartered Professional Member of The Australasian Institute of Mining and Metallurgy), has reviewed and verified the information contained in this announcement. He is qualified as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and a qualified person as defined in the AIM Note for Mining and Oil & Gas Companies dated June 2009.
For further information, please contact:
Strategic Minerals plc John Peters Managing Director
| +61 414 727 965 |
Allenby Capital Limited Nominated Adviser and Joint Broker Jeremy Porter James Reeve
| +44 (0)20 3328 5656 |
Cornhill Capital Limited Joint Broker James Sheehan Colin Rowbury
| +44 (0)20 3700 2516 |
Yellow Jersey PR Financial PR Dominic Barretto Kelsey Traynor | +44 (0)779 900 3220 |
Glossary of technical terms:
JORC | The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves |
MJ/kg (GAR) | Megajoules per kilogram on a gross as received basis |
Mt | Million tonnes |
Notes to Editors
Strategic Minerals plc is an AIM quoted, diversified mineral development and production company, with projects in the United States of America and New Zealand. The Company is focused on acquiring and developing cash generative, high quality projects which meet local market demand for commodities.
In September 2011, the Strategic Minerals purchased, its first cash generating asset, the Cobre magnetite tailings dam project in New Mexico, USA which it brought into production in 2014 and which continues to provide a revenue stream for the Company. The portfolio was expanded in March 2015 with the acquisition of the Tatu Coal Mine located in North Island, New Zealand. Strategic Minerals is now developing this project with the expectation it will make its first thermal coal sales by H1 2016.