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.
31 October 2017
Strategic Minerals plc
("Strategic Minerals" or the "Company" or "SML")
High grade tin intersections continue at Redmoor
Joint Venture partners commit to further funding
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), the diversified mineral production and development company, is pleased to announce the results from holes 11-15 of the Phase 1 diamond drilling programme at the Redmoor Tin-Tungsten Project located in Cornwall, UK being undertaken through its joint venture vehicle, Cornwall Resources Limited ("CRL").
HIGHLIGHTS:
· Continued successful high-grade tin and tungsten assay results within the Sheeted Vein System ("SVS")
· Broad intercepts at improved grades compared to the previous positive results
· Improved confidence in the continuity of the high grade zones
CRD013: |
7.41 m @ 2.11 % SnEq from 298.74 m, including 1.15 m @ 7.45 % SnEq from 298.74 m |
CRD014: |
7.83 m @ 1.52 % SnEq from 156.15 m, including 2.07 m @ 3.05 % SnEq from 156.15 m |
CRD015: |
15.03 m @ 1.01 % SnEq from 311.99 m, including 3.01 m @1.51 % SnEq from 311.99 m, and 1.00 m @ 4.40 % SnEq from 322.02 m |
CRD015: |
6.63 m @ 1.44 % SnEq from 343.74 m, including 1.00m @ 5.56% SnEq from 343.74m |
· High grade mineralisation also intersected in Kelly Bray Lode:
CRD011: |
0.75 m @ 4.18% SnEq from 367.25 m; intercept down-dip of known workings |
· The Phase 2 drilling programme continues to target high-grade zones within the SVS
· Drilling is expected to be finished imminently by when a total of 20 holes will have been drilled during 2017
· CRL's joint venture partners SML and New Age Exploration ("NAE") have committed to jointly fund a further £180,000 (in addition to the further £150,000 announced via RNS 7 September 2017) to cover two additional Phase 2 holes (increasing Phase 2 to a total of five holes), completion of the resource update and project overhead costs for 2018
· The results from the five Phase 2 holes will be released after completion of logging, core cutting and laboratory analysis and are expected by the end of 2017
· A resource update is expected in Q1 2018
· Community support remains positive, with 14 community meetings held since November 2016
Commenting, Peter Wale, Director of Cornwall Resources Ltd, said:
"These latest five holes at Redmoor have continued to build our confidence in the calibre of the resource potential for this project. The results reinforce our expectations for Redmoor to reach production and become an integral part of the renaissance in Cornish Mining, where we believe there to be significant potential.
"We are extremely proud of the work that the local team at Redmoor has undertaken, lead by Brett Grist, our Exploration Manager in the region. I would also like to acknowledge Energold Drilling for their consummate work on what is a rare UK located drilling programme. Finally, I'd like to express my gratitude to the local community for their continued confidence and support in the project."
2017 Drilling Programme
On 21 March 2017, CRL began a 13-hole Phase 1 diamond drilling programme aimed at increasing the high grade tin-tungsten-copper resource at its Redmoor Project. The Phase 1 programme was funded by the farm-in payment made by SML in February 2017. As a result of this payment SML and NAE became equal 50% joint venture partners in CRL and therefore the Redmoor Project.
Results for the first 10 Phase 1 holes (CRD001 to CRD010 inclusive) were published in the release dated 7 September 2017.
This update provides results for the remaining five Phase 1 holes from CRD011 to CRD015 inclusive.
Based on continued encouraging results in high-grade zones within the SVS, CRL's joint venture partners SML and NAE have agreed to fund a further £180,000 to cover an additional two Phase 2 holes (increasing Phase 2 to a total of five holes), completion of the resource update and project overhead costs for 2018.
Currently 19 of the 20 holes of the combined Phase 1 and 2 2017 programme have been completed and drilling is expected to be finished imminently.
The results from the five Phase 2 holes will be released after completion of logging, core cutting and laboratory analysis. These results are expected by the end of 2017.
Drilling Results
Of the four holes reported within this release that were targeted at the SVS, three successfully intersected high-grade zones within the SVS. The results from these latest holes have been particularly encouraging and continue to build on and confirm the previously reported SVS high-grade zone results, with, as an example CRD015 intercepting 15.03 m @1.01% SnEq from 311.99 m.
One of the five holes reported within this release, CRD011, targeted the Kelly Bray lode; and successfully intersected a narrow but exceptionally high-grade lode, grading 8.70% Cu over 0.75 m from 367.25 m. This intersection was directly down dip of known mine workings in an area that had previously been reported as an Exploration Target and which continues to remain such.
Sheeted Vein System (SVS) High Grade Zones
CRL's 2017 drilling targeted at high-grade zones within the SVS has continued to be successful. Holes CRD012, CRD013, CRD014, and CRD015 reported within this release were all directed at this target. Three of these holes have yielded more high-grade intersections, with best widths per hole ranging from 7.4 m to 15.0 m (see Appendix 1, Table (a) - Significant Intercepts). Highlights are provided below:
· CRD013: 7.41 m @ 2.11 % SnEq from 298.74 m, including 1.15 m @ 7.45 % SnEq from 298.74 m
· CRD014: 7.83 m @ 1.52 % SnEq from 156.15 m, including 2.07 m @ 3.05 % SnEq from 156.15 m
· CRD015: 15.03 m @ 1.01 % SnEq from 311.99 m, including 3.01 m @1.51 % SnEq from 311.99 m, and 1.00 m @ 4.40 % SnEq from 322.02 m
· CRD015: 6.63 m @ 1.44 % SnEq from 343.74 m, including 1.00m @ 5.56% SnEq from 343.74 m
Hole CRD012 also targeted the eastern edge of the mineralisation, close to surface. Anomalous but non-significant mineralisation was intersected in CRD012 including 0.53 m @ 1.68% SnEq from 50.11 m and 2.00 m @ 0.96% SnEq from 122.07 m, locating the eastern extreme of the SVS mineralisation, where mineralisation is less well developed.
The thicknesses quoted above, 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 value1 (SnEq).
These results have continued to identify multiple high-grade zones within the SVS, which are interpreted to plunge to the west at around 25˚.
1 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: total WO3 recovery 72%, total Sn recovery 68% & total Cu recovery 85% and payability assumptions of 81%, 90% and 90% respectively.
SVS High-Grade Zone Exploration Potential
The SVS high-grade zone significant intercepts continue to represent potentially attractive underground mining targets. The SML and NAE Directors continue to believe that the delineation of the SVS high-grade zones has the potential to significantly increase the grade of the SVS Resource previously stated in the 15 December 2015 Resource Update announcement, albeit within a reduced tonnage, and may support a larger tonnage of high grade material than the high-grade lode resource reported in the 15 December 2015 resource update.
The Phase 2 drilling programme has remained focused on continuing to define, and increase confidence in, the continuity of these high-grade zones within the SVS.
High-Grade Lodes
Kelly Bray Lode
Hole CRD011 was drilled to target the Kelly Bray Lode, which is located in the northern part of the area, and dips to the south. This hole was targeted beneath known workings on the Kelly Bray Lode in an area where an Exploration Target had previously been delineated and was successful in identifying narrow but high grade mineralisation that had not been mined. Results are as detailed in Appendix 1, Table (b), with highlights summarised below:
· CRD011: 0.75 m @ 4.18% SnEq from 367.25 m; intercept down-dip of known workings
Community
CRL continues to prioritise maintaining a close working relationship with the local community and local and County Councils. No complaints have been received to date regarding the drilling and associated activities. Where possible during the programme, local employment has been created. Following the most recent batch of results, a community display was held over two days to provide an opportunity for community members to hear about progress from the drilling programme.
CRL is continuing collaboration arrangements with local and regional universities including Camborne School of Mines, the University of Plymouth, and the University of Portsmouth.
Future Work Programme
The five-hole Phase 2 drilling programme is continuing to target high-grade zones within the SVS with the objective of defining a high-grade resource of sufficient size to potentially support an underground mining operation.
Currently 19 of the 20 holes of the combined Phase 1 and 2 2017 programme have been completed and drilling is expected to be finished imminently.
The results from the five Phase 2 holes will be released after completion of logging, core cutting and laboratory analysis and are expected by the end of 2017.
Resource Update
Following the receipt of results from the five Phase 2 holes, a resource update will be undertaken, results for which are expected in Q1 2018. The outcome of this will then be used to inform further potential work.
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 form part of the AIM Rules for Companies". This will further tailor the statement towards the AIM market. 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.
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.
For further information, please contact:
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 earths. 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.
APPENDIX 1
CRL 2017 Drilling significant intercepts for Holes CRD011-CRD015
(a) Sheeted Vein System High-Grade Zone Intercepts
Drillhole |
From
(m) |
To
(m) |
Intersection Thickness
(m) |
Est. True Thickness
(m) |
Sn Eq
(%) |
Sn
(%) |
W03
(%) |
Cu
(%) |
Intercept |
CRD013 |
298.74 |
306.15 |
7.41 |
4.75 |
2.11 |
1.15 |
0.43 |
0.88 |
HG SVS |
including |
298.74 |
299.89 |
1.15 |
0.70 |
7.45 |
2.92 |
2.33 |
2.99 |
HG SVS |
CRD014 |
144.46 |
147.78 |
3.32 |
2.70 |
1.31 |
0.19 |
0.67 |
0.40 |
HG SVS |
CRD014 |
156.15 |
163.98 |
7.83 |
7.20 |
1.52 |
0.06 |
0.93 |
0.32 |
HG SVS |
including |
156.15 |
158.22 |
2.07 |
1.70 |
3.05 |
0.05 |
2.09 |
0.06 |
HG SVS |
CRD015 |
210.84 |
217.84 |
7.00 |
5.47 |
0.71 |
0.67 |
0.01 |
0.07 |
HG SVS |
CRD015 |
296.00 |
305.23 |
9.23 |
6.89 |
0.81 |
0.51 |
0.12 |
0.30 |
HG SVS |
including |
296.00 |
297.00 |
1.00 |
0.86 |
2.71 |
2.54 |
0.11 |
0.03 |
HG SVS |
CRD015 |
311.99 |
327.02 |
15.03 |
11.34 |
1.01 |
0.41 |
0.36 |
0.19 |
HG SVS |
including |
311.99 |
315.00 |
3.01 |
2.51 |
1.51 |
0.17 |
0.84 |
0.33 |
HG SVS |
including |
322.02 |
323.02 |
1.00 |
0.75 |
4.40 |
4.18 |
0.11 |
0.14 |
HG SVS |
including |
326.01 |
327.02 |
1.01 |
0.75 |
3.48 |
0.27 |
2.22 |
0.10 |
HG SVS |
CRD015 |
343.74 |
350.37 |
6.63 |
4.72 |
1.44 |
0.44 |
0.57 |
0.48 |
HG SVS |
including |
343.74 |
344.74 |
1.00 |
0.81 |
5.56 |
0.27 |
3.63 |
0.29 |
HG SVS |
including |
345.74 |
346.75 |
1.01 |
0.82 |
1.50 |
1.00 |
0.01 |
1.20 |
HG SVS |
(b) High-Grade Lode Intercepts
Drillhole |
From
(m) |
To
(m) |
Intersection Thickness
(m) |
Est. True Thickness
(m) |
Sn Eq
(%) |
Sn
(%) |
W03
(%) |
Cu
(%) |
Lode |
CRD011 |
367.25 |
368.00 |
0.75 |
0.61 |
4.18 |
0.69 |
0.01 |
8.70 |
Kelly Bray Lode |
APPENDIX 2
Table of drillhole collar co-ordinates
Hole No. |
Easting |
Northing |
RL/ m |
Azimuth |
Dip |
Length/ m |
Diameter |
CRD011 |
236067 |
71204 |
192 |
320 |
-63 |
399.10 |
0-296m HQ3, 296m to EoH NQ3 |
CRD012 |
236309 |
71177 |
212 |
168 |
-50 |
181.55 |
0-EoH HQ3 |
CRD013 |
235733 |
71178 |
172 |
138 |
-50 |
427.06 |
0-184m HQ3, 184m to EoH NTW |
CRD014 |
236076 |
71179 |
192 |
195 |
-50 |
280.35 |
0-280m HQ3 |
CRD015 |
235635 |
71126 |
168 |
128 |
-57 |
411.60 |
0-181m HQ3, 270m to EoH NTW |
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Notes: |
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All collar co-ordinates are in British National Grid format. Azimuths are relative to grid north. |
All hole collar positions surveyed by DGPS |
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Abbreviation EoH: End of Hole |
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Core diameters: HQ3: 61mm, NTW 56mm, BTW 42mm, NQ3 45mm |
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