Last checked at 27 Nov 2018 07:00
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27th November 2018
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Redmoor Drill Results Including Bonanza Grade Intercepts
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, is pleased to announce continued strong assay results from the final three holes of the 2018 Phase 1 drilling programme at its Redmoor Tin-Tungsten Project, being undertaken through its 50% owned joint venture vehicle Cornwall Resources Limited ("CRL"). In addition, exceptional assays have been received for the first hole of the Phase 2 drilling programme.
Highlights:-
· Outstanding intercepts of up to 29.68%, 15.55% and 13.15% tin equivalent for hole CRD028.
· Current results are the highest-grade intercepts yet drilled. Reinforcing the calibre of the drilling campaign and the Redmoor Project overall.
· Further bonus hole planned - the efficiency of the CRL Team has allowed one supplementary hole (CRD032) to be added to the Phase 2 programme, funded from within the current budget. We expect this hole to further boost the potential for resource growth.
· Assay results from four further holes in the Redmoor 2018 drilling programme continue to show more evidence of high-grade zones within the Sheeted Vein System ("SVS"), highlights of which are: -
o CRD025: 11.00 m @ 1.10% SnEq from 277.15 m, including 2.10 m @ 3.00% SnEq
o CRD026: 10.31 m @ 1.17% SnEq from 518.60 m, including 1.62 m @ 3.25% SnEq
o CRD026: 5.00 m @ 2.95% SnEq from 537.00 m, including 2.00 m @ 4.75% SnEq
o CRD027: 9.10 m @ 1.15% SnEq from 442.02 m, including 1.00 m @ 4.17% SnEq
o CRD028: 6.56 m @ 3.30% SnEq from 459.41 m, including 1.22 m @ 15.55% SnEq
o CRD028: 12.01 m @ 1.84% SnEq from 493.16 m, including 0.75 m @ 13.15% SnEq
o CRD028: 7.99 m @ 3.45% SnEq from 543.61 m, including 0.70 m @ 29.68% SnEq
· Phase 2 drilling has progressed rapidly, with the planned four holes now complete (CRD028, CRD029, CRD030, and CRD031). Results for CRD028 have provided further confirmation of improving grades at depth.
· Drilling is expected to complete during December on the final bonus hole (CRD032). Following this, and the subsequent receipt of assay results, CRL plans to carry out an update to its Inferred mineral resource in Q1 2019.
· Full Results from Phase 2 are likely to be available early in Q1 2019.
In preparation for a future Pre-Feasibility Study, and to add to existing test work data, preliminary ore characterisation metallurgical test work on samples from Redmoor has commenced at consultant, Wardell Armstrong International's laboratory in Cornwall.
Commenting, Peter Wale, Executive Director, Strategic Minerals and Director, CRL, said:
"The sustained superb assay results from Redmoor which have surpassed our expectations continue to highlight exciting high-grade tin equivalent values.
We have great confidence for the potential to both increase the resource tonnage and grade at Redmoor and demonstrate the scope for it to become a notably attractive project when these results are converted into a resource estimate early in 2019.
Being able to incorporate a valuable further hole into the programme's timeline and budget clearly demonstrates the calibre of our CRL team, who have already shown success at extending known mineralisation beyond the existing resource model.
SML remains very active across all its projects, we look forward to updating shareholders on our continued progress both at Redmoor and elsewhere."
2018 DRILLING PROGRAMME
In June 2018, CRL began this year's Phase 1 drilling programme, aimed at further increasing the tonnage and grade of the high-grade tin-tungsten-copper resource within the SVS at its Redmoor Project, which presently stands at an Inferred Resource of 4.5 Mt @ 1.0% SnEq (RNS 20th March 2018 - Redmoor 2018 Mineral Resource Update.) The seven-hole Phase 1 programme was funded by SML and NAE having contributed £332,000 each.
Assay results for the first two holes, CRD021 and CRD022, were reported on 19th September. Results for the next two holes, CRD023 and CRD024, were reported on 3rd October.
The remaining holes (CRD025, CRD026 and CRD027) of the Phase 1 programme are reported herein, together with the first hole of the Phase 2 programme (CRD028).
Four holes (CRD028, CRD029, CRD030, and CRD031) have been drilled as Phase 2 of the 2018 drilling programme. Due to rapid progress made, a further hole, CRD032 has been added to the Phase 2 drilling programme, aimed at further extending the Redmoor high-grade resource in the open down-dip direction.
REDMOOR GEOLOGY OVERVIEW: Sheeted Vein System (SVS)
The SVS is a body in which numerous closely-spaced sub-parallel veins carry high-grade tin, tungsten and copper mineralisation. The SVS strikes at approximately 070° and dips at approximately 70° to the north. The SVS has a strike continuity of over 650 m with a thickness of approximately 100 m, and a variable known dip extent (250 - 450 m). The SVS is open down-dip over much of its length. Within this volume are a series of discrete high-grade zones, sub-parallel to the overall SVS envelope. The 2018 drilling was designed to test this high-grade material, and all the holes of the Phase 1 programme have successfully intersected it. The 2018 resource contained eight volumes in this high-grade material ranging from 135,000 t to 1,200,000 t (at a density of 2.9 g/cm3). Distribution of the various metals is not uniform within the structure. Tin is richer in the western parts, tungsten to the east and at depth, and copper is typically richer higher in the system. All metals overlap to some degree.
FURTHER HIGH-GRADE TIN, TUNGSTEN ASSAYS
A summary of the significant intercepts for holes CRD025, CRD026, CRD027, and CRD028, is provided below with details shown in Appendix 2. The tin equivalent calculation and basis for thicknesses is provided in the footnote [¹] below.
CRD025
A summary of the significant intercepts in CRD025 is provided below: -
· 11.00 m @ 1.10% SnEq from 277.15 m, including 2.10 m @ 3.00% SnEq
· 2.00 m @ 2.47% SnEq from 309.56 m
Hole CRD025 successfully tested the gap between the existing inferred resource and CRD019, the deepest high-grade hit of 2017. As expected by CRL's geologists, based on their developing understanding of metal zonation and distribution at Redmoor, CRD025 proved tungsten-rich and also had notable copper content.
CRD026
A summary of the significant intercepts in CRD026 is provided below: -
· 2.20 m @ 3.04% SnEq from 478.47 m
· 10.31 m @ 1.17% SnEq from 518.60 m, including 1.62 m @ 3.25% SnEq
· 5.00 m @ 2.95% SnEq from 537.00 m, including 2.00 m @ 4.75% SnEq
Hole CRD026 successfully intersected mineralisation down-dip of both the existing resource and CRD019. It intersected strong tungsten grades that add further evidence for the trend of increasing grade with depth, and for the presence of a tungsten-rich zone underlying the upper tin-rich zone.
CRD027
A summary of the significant intercepts in CRD027 is provided below: -
· 1.00 m @ 4.54% SnEq from 371.35 m
· 3.59 m @ 1.39% SnEq from 430.43 m
· 9.10 m @ 1.15% SnEq from 442.02 m, including 1.00 m @ 4.17% SnEq
Hole CRD027 successfully tested the western portion of the SVS. This adds a significant and tin-rich intercept to the western side of the deposit, as well as confirming mineralisation in a previous gap in the model, potentially improving continuity. The results are notably higher in tin than the majority of results seen so far in 2018; an outcome predicted by the existing metal distribution model for Redmoor. CRL's geologists interpret this metal distribution as being related to distance from the granite contact; locations closer to the granite are more tungsten rich, and more distal locations host more tin.
CRD028
A summary of the significant intercepts in CRD028 is provided below:
· 6.56 m @ 3.30% SnEq from 459.41 m, including 1.22 m @ 15.55% SnEq
· 12.01 m @ 1.84% SnEq from 493.16 m, including 0.75 m @ 13.15% SnEq and 1.00 m @ 7.10% SnEq
· 7.99 m @ 3.45% SnEq from 543.61 m, including 0.70 m @ 29.68% SnEq and 1.00 m @ 4.05% SnEq
Hole CRD028 yielded values of up to 20.62% WO₃ and of up to 1.98% Cu, observed in drillcore in the form of well-developed wolframite and chalcopyrite mineralisation in quartz veins at these intervals (545.78 m and 493.16 m respectively). Hole CRD028 successfully tested a portion of the target immediately below the central part of the March 2018 resource, and together with adjacent holes CRD022, CRD019, and CRD026, is considered to offer potential to further upgrade the resource.
PHASE 2 DRILLING AND FIFTH HOLE
CRL announced on 3rd October that it planned to initiate Phase 2 of the drilling programme, consisting of a minimum of four holes. These holes; CRD028, CRD029, CRD030, and CRD031 have been successfully completed ahead of schedule. An additional, fifth hole, CRD032 is presently underway, and is expected to complete by mid-December. CRD032 aims to further extend the known orebody extent down-dip, potentially adding tonnage and demonstrating the full extent of the orebody. The remaining results of the Phase 2 drilling programme are expected to be available early in Q1 2019.
METALLURGICAL TESTWORK
CRL has dispatched two composite samples to consultants Wardell Armstrong International for preliminary metallurgical test work. This aims to characterise the Redmoor ore types, provide updated theoretical grade-recovery relationships, and to refine the process design originally proposed following testing in the 1980s by South West Minerals Limited.
[¹] The thicknesses quoted below, and all other thicknesses in this report are, unless otherwise stated, apparent thicknesses. Estimated true thicknesses are shown in Appendix 1. 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
COMPETENT PERSON'S STATEMENT
The information in this report that relates to Exploration Results is based on information compiled and/or reviewed by Paul Gribble C.Eng., a Fellow of the Institute of Materials, Minerals and Mining (FIMMM), and who is Principal Geologist of Geologica UK (Geologica). Paul Gribble 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'. Paul Gribble is also a Competent Person "as defined in the Note for Mining and Oil & Gas Companies which form part of the AIM Rules for Companies". Paul Gribble has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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.
APPENDIX 1 - Redmoor 2018 Drillhole Collar Co-Ordinates
Hole No. | Site | Easting* | Northing* | RL/ m* | Azimuth | Dip | Length/ m | Diameter |
Drilled / in progress - Phase 1 & Phase 2 | ||||||||
CRD021 | B | 235652 | 71250 | 178 | 104 | -72 | 728.70 | HQ: 0-138, NQ: 138-728.7 |
CRD022 | A | 235732 | 71289 | 181 | 126 | -55 | 521.90 | HQ: 0-521.9 |
CRD023 | B | 235652 | 71253 | 179 | 148 | -78 | 728.25 | HQ: 0-215.9, NQ: 215.9-728.25 |
CRD024 | A | 235733 | 71290 | 181 | 113 | -64 | 658.30 | HQ: 0-400.8, NQ: 400.8-658.3 |
CRD025 | C | 236067 | 71201 | 192 | 162 | -81 | 444.70 | HQ: 0-444.7 |
CRD026 | A | 235732 | 71289 | 181 | 107 | -56 | 627.80 | HQ: 0-272.7, NQ: 272.7-627.8 |
CRD027 | D | 235615 | 71092 | 165 | 228 | -79 | 501.15 | HQ: 0-EOH |
CRD028 | A | 235732 | 71289 | 181 | 119 | -58 | 567.72 | HQ: 0-368.93, NQ: 368.93-567.72 |
CRD029 | E | 235409 | 71089 | 163 | 113 | -79 | 578.60 | HQ: 0-182.4, NQ:182.4-578.6 |
CRD030 | A | 235734 | 71292 | 181 | 160 | -71 | 640.45 | HQ: 0-389.8, NQ: 389.8-640.45 |
CRD031 | F | 235735 | 71177 | 172 | 116 | -71 | 569.50 | HQ: 0-569.5 |
CRD032* | A | 235732 | 71289 | 181 | 101 | -69 | 750# | In progress |
*Final drilled positions may vary slightly due to site considerations and will be picked up by surface survey on completion of each site
# Planned length
APPENDIX 2 - CRL 2018 Drilling significant intercepts for holes CRD025 - CRD028
Drillhole | From(m) | To (m) | Intersection Thickness(m) | Est. True Thickness(m) | Cu(%) | Sn(%) | W03(%) | Sn Eq(%) |
CRD025 | 277.15 | 288.15 | 11.00 | 5.45 | 1.01 | 0.03 | 0.47 | 1.10 |
including | 285.05 | 287.15 | 2.10 | 1.04 | 2.25 | 0.02 | 1.45 | 3.00 |
CRD025 | 309.56 | 311.56 | 2.00 | 1.17 | 0.52 | 0.05 | 1.55 | 2.47 |
CRD026 | 478.47 | 480.67 | 2.20 | 1.44 | 0.93 | 0.01 | 1.86 | 3.04 |
CRD026 | 518.60 | 528.91 | 10.31 | 6.4 | 0.33 | 0.01 | 0.72 | 1.17 |
including | 522.79 | 524.41 | 1.62 | 1.01 | 0.06 | 0.01 | 2.25 | 3.25 |
CRD026 | 537.00 | 542.00 | 5.00 | 3.4 | 0.13 | 0.06 | 1.99 | 2.95 |
including | 539.00 | 541.00 | 2.00 | 1.36 | 0.10 | 0.01 | 3.29 | 4.75 |
and including | 540.00 | 541.00 | 1.00 | 0.68 | 3.60 | 0.01 | 2.86 | 5.18 |
CRD027 | 371.35 | 372.35 | 1.00 | 0.62 | 0.09 | 2.56 | 1.36 | 4.54 |
CRD027 | 430.43 | 434.02 | 3.59 | 2.25 | 1.05 | 0.73 | 0.17 | 1.39 |
CRD027 | 442.02 | 451.12 | 9.10 | 5.7 | 0.65 | 0.64 | 0.18 | 1.15 |
including | 444.02 | 445.02 | 1.00 | 0.63 | 3.71 | 2.65 | 0.03 | 4.17 |
and including | 449.02 | 450.02 | 1.00 | 0.63 | 0.99 | 1.37 | 0.49 | 2.47 |
CRD028 | 459.41 | 465.97 | 6.56 | 5.1 | 0.55 | 0.03 | 2.14 | 3.30 |
including | 459.41 | 460.63 | 1.22 | 0.95 | 1.43 | 0.06 | 10.43 | 15.55 |
CRD028 | 493.16 | 505.17 | 12.01 | 8.75 | 0.52 | 0.03 | 1.12 | 1.84 |
including | 493.16 | 493.91 | 0.75 | 0.55 | 1.98 | 0.10 | 8.58 | 13.15 |
and including | 504.17 | 505.17 | 1.00 | 0.73 | 0.20 | 0.02 | 4.90 | 7.10 |
CRD028 | 543.61 | 551.60 | 7.99 | 5.3 | 0.07 | 0.01 | 2.39 | 3.45 |
including | 545.78 | 546.48 | 0.70 | 0.46 | 0.45 | 0.02 | 20.62 | 29.68 |
and including | 550.60 | 551.60 | 1.00 | 0.66 | 0.02 | 0.01 | 2.82 | 4.05 |
Minimum criteria for selection of broader significant results: minimum grade x width of 4.0m% SnEq, e.g. 5m @ 0.8% SnEq
For further information, please contact: | ||
Strategic Minerals plc | +61 (0) 414 727 965 | |
John Peters | ||
Managing Director | ||
www.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 | |
Facebook: | https://www.facebook.com/search/top/?q=strategic%20minerals%20plc | |
SP Angel Corporate Finance LLP | +44 (0)20 3470 0470 | |
Nominated Adviser and Broker | ||
Ewan Leggat | ||
Laura Harrison | ||
Notes to Editors
Strategic Minerals Plc is an AIM-quoted, operating minerals company actively developing projects prospective for battery materials. It has an operation in the United States of America and 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 being sought in the burgeoning electric vehicle/battery market.
In September 2011, Strategic Minerals acquired 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 orientated to supplying the burgeoning electric vehicle/battery market.
In January 2016, the portfolio was expanded 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 September 2018, the Company entered contracts for the sale of certain CARE tenements that have been identified as gold targets.
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. The final hole of the 12-hole 2018 drilling programme is presently underway; final assays are expected early in Q1 2019.
In March 2018, the Company completed the acquisition of the Leigh Creek Copper Mine situated in the copper rich belt of South Australia and is currently working to bring this into operation in 2019.