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.
27 March 2018
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Hanns Camp Cobalt / Nickel Project - Exploration Update
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects for battery materials, is pleased to provide an exploration update for the Hanns Camp tenements, Western Australia, east of Laverton held by its wholly owned subsidiary Central Australian Rare Earths' ("CARE").
Highlights
· A recently completed Electromagnetic ("EM") survey identified a significant conductor. Further field work of the area around this conductor will be completed to assess if drilling is warranted
· Following the geological review in conjunction with Dr. Martin Gole, an additional target within the Hanns Camp Project has been identified as potentially hosting komatiite lava channel-facies rocks, which is one of the key requirements for the potential accumulation of nickel sulphides
· The Company plans to test this target with a first pass aircore drilling programme, which, subject to Department of Mines, Industry Regulation and Safety ("DMIRS") approval, will commence in April
Chairman of Strategic Minerals, Mr. Alan Broome AM, commented:
"We are delighted that the recent electromagnetic survey has, as the Board had hoped, suggested that further field work of the Hanns Camp Project area is indeed warranted. The recent work conducted by Dr. Gole and our geological team has given us great confidence as the Company progresses with the next phase of exploration.
"In light of growing demand for battery minerals for use in the electric vehicle market, the Board feels further exploration for nickel and cobalt targets at the Hanns Camp prospect looks to be warranted. Further, we would expect to be able to fund these activities using existing cash flow from within the business.
"We look forward to updating the market in due course."
CARE Tenements
In 2016, the Company funded a drilling programme at the highly prospective Hanns Camp located within CARE's Laverton Project. In doing so, it acquired 50% of the ownership of CARE from Rarus Limited. Subsequently, in May 2017, the Company acquired the balance of the ownership of CARE, which is now wholly owned by the Company.
CARE holds tenements and has access to mining rights for cobalt, nickel, rare earth elements and gold in these tenements in Western Australia.
The Laverton Project is located in the 'Eastern Yilgarn Craton Nickel Sulphide Province' in Western Australia, that is most notable for hosting the Mount Windarra and South Windarra nickel sulphide deposits, located 12km west of the Laverton Project, which together produced 8.1 million metric tonnes (Mt) at 1.51% nickel (Ni) between 1974 and 1992. Other more recent discoveries located distally north and south along strike of the Laverton Project include;
· Duketon Mining's Rosie Deposit that has a Mineral Resource estimate of 1.74Mt at 1.7% Ni including a best intercept of 5.2 metres at 9.13% Ni, 1.09% copper (Cu) and 2.22grams/ tonne platinum (Pt) from 599.71 metres down hole
· Rox Resources' Fisher East Project (Mineral Resource 3.6Mt at 2.0% Ni)
· Impact Minerals' Mulga Tank Project which returned a best intercept of 0.25 metres at 3.8% Ni and 0.7% Cu from 212.6 metres down hole
Hanns Camp Nickel Sulphide Exploration
As previously announced, SML has engaged Dr. Martin Gole, an internationally recognised expert in ultramafic hosted nickel sulphides to review the exploration potential of the Hanns Camp Project. This initial review was completed in January 2018.
In an exciting new development for the Project, Dr. Gole has identified the existence of komatiite lava channel-facies rocks within the Hanns Camp ultramafic which is one of the key requirements for the potential accumulation of nickel sulphides.
Following this review a Fixed Loop Electromagnetic Survey ("FLEM") was completed over the interpreted positon of the channel in an attempt to better resolve moderate EM anomalies recognised from historic surveys.
The results of the FLEM survey did not identify any significant bedrock conductors within the channel facies position of the Hanns Camp ultramafic that warrant drill testing. However, a significant conductor marginal to the channel position was identified. Due to this position the conductor is not an immediate drill target, and further detailed field mapping of the area around this conductor will be completed to improve the geological understanding and asses if drill testing is warranted.
Subsequent to the geological review of the Project completed in conjunction with Dr. Gole, additional targets within the Hanns Camp Project have been identified as potentially hosting komatiite lava channel-facies rocks. These targets have had nil to only minimal historic testing by historic exploration.
It is planned to test the highest priority target, a magnetic feature under alluvial cover located approximately 7km to the south of Hanns Camp, with a first pass aircore drilling programme. Subject to DMIRS permitting, drilling can commence as soon as April. Results of this work will be available approximately 6-8 weeks upon completion of field activities.
Competent Persons Statement
The Exploration results in this announcement are based on information compiled by Mr. Graeme Purcell, who is a Member of the Australasian Institute of Geoscientists. Mr. Purcell is the Principal of Petrichor Geological 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. Purcell has over 20 years' Australia and international experience in exploration for precious and base metals.
For further information, please contact:
Notes to Editors
Strategic Minerals Plc is an AIM-quoted, operating minerals company actively developing projects 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 electronic vehicle 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 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 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 was completed in February 2017 and a drilling programme completed in 2017 resulted in a significant upgrade of the resource.
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.
