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Strategic Minerals - Leigh Creek Copper Mine Drilling Update

Thu, 6th Dec 2018 07:45

RNS Number : 6508J
Strategic Minerals PLC
06 December 2018
 

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.

 

6 December 2018

 

 Strategic Minerals plc

("Strategic Minerals", "SML" or the "Company")

LCCM drilling confirms new copper mineralisation extending at depth below Rosmann East Pit

Refurbishment programme commences at Mountain of Light processing plant

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, is pleased to announce results from recent drilling at the Company's wholly owned Leigh Creek Copper Mine Pty Ltd ("LCCM") project in South Australia and the commencement of the refurbishment programme to restart the Mountain of Light processing plant.

Highlights: -

·    Significant copper mineralisation intersected at Rosmann East below the existing open pit

RERC18-02: 13-67m (end-of-hole), 54m at 1.41% Cu

§ Including: 27-49, 22m at 2.58% Cu

RERC18-01: 12-62, 50m at 0.43% Cu

Depth of mineralisation not closed off by drilling, with the RERC18-02 end of hole assay of 1m @ 1.1% Cu

Follow up diamond drilling commenced

·    Commencement of the processing plant refurbishment programme which will allow restarting of operations in 2019.

·    250-hole shallow air core programme completed for all existing heap leach pads with LCCM awaiting assay results.

·    Completion of the 10 hole, 500m reverse circulation drilling programme to test for copper oxide potential between the Lynda and Lorna Doone deposits with only minor mineralisation returned in the assays.

 

Commenting, John Peters, Managing Director, Strategic Minerals said:

"The SML Board is exceptionally pleased with the recent progress LCCM has made towards the recommencement of copper production, with the start of the refurbishment programme. The prospect of the plant being ready ahead of schedule provides an opportunity to start copper production potentially earlier in the first half of 2019.

This progress is further enhanced by the excellent results from drilling below the historically mined Rosmann East pit.  The drilling opens the potential not only to add significant resources but also provides the opportunity for the Rosmann East deposit to be a material additional feed into the Mountain of Light plant. To explore this possibility further, the Company has allocated funds for additional diamond drilling and metallurgical testwork, with the results expected to be available in Q1 2019."

 

Rosmann East Drilling

The Rosmann East deposit is located adjacent to the Mountain of Light processing facility and was previously mined for copper oxide mineralisation to the water table level.  LCCM has recently completed two Reverse Circulation (RC) holes (for a total of 155m) to test for potential copper oxide and sulphide extensions below the current pit floor.   Both holes successfully intersected significant copper oxide and / or sulphide (chalcocite) mineralisation. The following table details the significant intervals from the two completed holes. 

 

Hole ID

From

(Metres)

To

(Metres)

Interval

(Metres)

Copper Grade

(% Cu)

RERC18-01

12

62

50

0.43%

RERC18-02

Including

13

27

67

49

54

22

1.41%

2.58%

 

Both holes confirm that copper mineralisation has a significant depth extension below the current pit floor with RERC18-02 ending in mineralisation. While RERC18-01 did not end in mineralisation, it is considered the angle of the drilling was responsible for the final reading rather than continuation of the potential resource at depth.  

With the success of the RC drilling below the Rosmann East pit, LCCM has engaged Budd Drilling to commence a 7-hole diamond drilling programme to provide support for a Resource estimate in Q1 2019.   The diamond core will be further utilised to complete a metallurgical testwork programme as Rosmann East could potentially provide an early feed into the Mountain of Light processing plant.  

 

Lynda and Lorna Doone Drilling

The Lyndhurst project consists of two unmined copper oxide deposits, Lynda and Lorna Doone, which are approximately 500m apart.  The future infrastructure and processing plant is located between the two deposits. The location identified required sterilisation drilling as recent mapping and data interrogation of the area between the deposits has identified several old costeans and pits with traces of malachite present as well as a number of the historical Cyprus Mines and AWF holes which have intersected significant widths of anomalous copper, nearing 0.1% Cu.

LCCM has completed a 10 hole, 500m reverse circulation programme to test for copper oxide potential between the Lynda and Lorna Doone deposits.  No visible copper mineralisation was intersected in this drilling, however, one hole returned 16m @ 0.16% Cu.  Additionally, the drilling has resulted in a greater understanding on the diapir location and hence the controls of copper mineralisation for the Lynda and Lorna Doone deposits was a significant benefit of the drilling. 

 

Metallurgical Testwork

The metallurgical testwork programme for the Paltridge North deposit has progressed to the stage where preparation of a sample for the initial 'sighter' column leach test will occur in early December, with the full 'sighter' test to commence later in December.  This will then lead into the main column leach test programme in January 2019.

 

Copper Process Plant Restart Programme

A programme to restart the existing Mountain of Light processing facility has commenced, with the wet commissioning scheduled to be completed in Q1 2019.  This refurbishment programme will provide a meaningful step towards recommencement of copper production, with the initial feedstock planned to be sourced from existing heap leach pads.      

 

COMPETENT PERSON'S STATEMENT

The exploration results in this announcement have been reviewed by and are based on information compiled by Mr. David Larsen, who is a Member of the Australian Institute of Geoscientists.  Mr Larsen is the Principal of D&J Larsen Consulting Pty Ltd and is a consultant to the Company. He has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity 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 and a qualified person as defined in the AIM Note for Mining and Oil & Gas Companies dated June 2009.  Mr Larsen has over 35 years' Australia and international experience in exploration, mining geology and resource estimation for gold, base metals and iron ore deposits.

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.

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 its development projects.

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 that are prospective for cobalt, 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 sold certain CARE tenements that had 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 2018 drill programme is almost complete and has provided the best assay results to date.

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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
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