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.
13 June 2018
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Leigh Creek Copper Mine Work Programme Commenced
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, is pleased to inform the market that it has commenced the technical assessment of the Leigh Creek Copper Mine ("LCCM") with the formation of a highly experienced study team. The proposed work programme is expected to lead to the commencement of copper production around mid-2019.
Highlights
· Formation of highly experienced technical team with extensive experience in South Australian copper projects
· Drilling of existing heap leach pads due to commence in second half of June
· Drilling of Paltridge North, Lynda and Lorna Doone deposits for metallurgical samples due to commence in July
· Exploration drilling for potential resource extension between the Lynda and Lorna Doone deposits due to commence in July
Commenting, John Peters, Managing Director of Strategic Minerals, said:
"The SML Board is thrilled with the highly skilled and experienced technical team that has been assembled to progress this exciting copper project. The team has over 100 years' combined experience, much of which is in South Australian copper geology and processing. The quality of the team provides a superb foundation from which to review potential development and processing options and settle on a work programme that will minimise risk and maximise shareholder returns.
"The SML Management and Board are closely following the progress at LCCM and have established reporting arrangements and management policies to closely monitor developments and to ensure delivery of sustainable operations mid-2019.
"The work programme and the development of LCCM are both expected to be fully funded from the Company's existing cash flows, and we look forward to updating the market on the progress of the work programme during the September quarter."
LCCM Work Programme
As announced by SML on 26 April 2018, a work programme was committed to by the Company to assess low risk processing options for the Mountain of Light and Lyndhurst projects, which collectively form the LCCM project, as well as looking for opportunities to increase the existing resource base.
This work programme is aimed to commence sustainable production from existing heap leach pads in mid-2019.
Initial work activities include:
· Drill testing and assaying of the existing heap leach pads
· Volume determination of existing heap leach pads
· Diamond drilling of Paltridge North, Lynda and Lorna Doone deposits for subsequent metallurgical testwork to determine the most appropriate metallurgical process to increase recoveries
· Exploration drilling to test for possible copper oxide deposit extensions between the Lynda and Lorna Doone deposits
LCCM Project Team
The work programme at LCCM has commenced with the formation of a world class technical team in project management, geology and metallurgy which has a combined experience of over 100 years, with much of it in South Australian copper deposits.
Jonathon Trewartha, Project Manager
Jonathon is a highly experienced Mining Engineer and Project Manager with over 28 years' experience in South Australian copper and international base metal projects. This includes project management with Golder Associates, Terramin and on the Olympic Dam copper-gold project. Jonathon was the Managing Director of Resilience Mining Australia Ltd., the previous owners of the LCCM project, and has formed a strong foundation for the project to move forward into production.
Jonathon is also a guest lecturer at the University of Adelaide.
David Larsen, Geology Manager
David has over 35 years' experience as a geologist working in the mining and exploration industries throughout Australia, the Pacific and Mongolia. He has worked across a wide variety of commodities including gold, base metals and iron ore, and has done so in both open pit and underground operations. His areas of expertise include near-mine exploration, feasibility studies, JORC and NI43-101 compliant resource estimation and reporting, operations establishment, due diligence and quality improvement.
Arthur Hunt, Metallurgical Manager
Arthur is a metallurgist and operations manager with 34 years' experience in metallurgy, project and operations management. Arthur is well regarded in the industry having held key roles in South Australia including: Uranium One - Mine Manager; CuDeco Ltd - Technical Manager; OZ Minerals - Processing and Maintenance Manager - Prominent Hill and WMC Olympic Dam - General Manager Smelter.
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 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.
