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.
12 October 2018
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Commencement of Exploration Drilling at Leigh Creek Copper Mine
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, is pleased to announce the commencement of the next phase of drilling focussed on exploration for additional copper resources at the Leigh Creek Copper project (LCCM). This is being completed at the same time as the metallurgical testwork on the diamond drill core recently obtained from the three key deposits, Paltridge North, Lynda and Lorna Doone.
HIGHLIGHTS
· Commencement of 10 hole drilling programme for 500m, reverse circulation (RC) exploration, drilling for potential repeat copper oxide deposits between Lynda and Lorna Doone at the Lyndhurst Project
· 2 RC holes testing for potential copper oxide and sulphide mineralisation below the Rosmann East pit adjacent to the Mountain of Light copper processing facility
· 250 air core holes drilled on a 10 x 10m grid pattern to test for remnant mineralisation within the existing heap leach pads at Mountain of Light
· Ongoing progress on the metallurgical testwork to determine the optimal processing flowsheet for the LCCM mineralisation
· Integral part of Board's vision to make LCCM a major long term copper play
This drill programme forms part of the Board's overall strategy for the restarting of operations at Leigh Creek. To date, a highly experienced team has been formed, drilling for metallurgical samples has been completed and metallurgical testwork has commenced. While previous work has focussed on the appropriate approach to treating the material on restart, the 10 hole drilling programme concerns expansion on the known resource within the mining leases.
The defining of additional resources is part of the Board's vision for the Leigh Creek Copper Project. It is the Board's view that it can successfully restart the operations mid-2019 and that, on the existing JORC resource of 24,900 tonnes, a four to five year project can be undertaken. However, accessing additional copper oxide resources on existing mining leases and in smaller nearby holdings has the potential to double the expected project life.
Further investigation is also being undertaken in an attempt to identify a separate copper sulphide deposit which, if found, would significantly and positively redefine the project.
An updated presentation on Leigh Creek can be found in the Presentations tab of the Company's website (http://www.strategicminerals.net/investors/presentations.html).
Commenting, John Peters, Managing Director of Strategic Minerals, said:
"The commencement of the first exploration drilling on the LCCM Mining Licences for over 40 years is a new and potentially exciting phase for the LCCM. This comes on the heals of the completion of the diamond drilling for the metallurgical testwork. Exploring for a new deposit at the Lyndhurst Project and for potential copper sulphides below an existing oxide deposit both have the potential, if successful, to create new development options for LCCM.
The Chairman, Alan Broome, and I recently completed a review workshop of the LCCM project with the full LCCM project team and we are both encouraged that the metallurgical testwork and preliminary open pit evaluation is progressing successfully. The results of the testwork will be released to the market when they become available."
Lyndhurst Exploration - Copper Oxides
The Lyndhurst project consists of two unmined copper oxide deposits, Lynda and Lorna Doone, which are approximately 500m apart. 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 commenced a 10 hole, 500m reverse circulation programme to test for copper oxide potential between the Lynda and Lorna Doone deposits. This is the first known exploration drilling at this project for approximately 40 years and will significantly increase our geological understanding of the region.
The drilling is being completed by McLeod Drilling which is based in north-central South Australia which further supports LCCM's and the Company's commitment to utilise local skills and resources wherever possible.
The Lyndhurst project is located approximately 70km north of the Mountain of Light processing facility.
Rosmann East Exploration - Copper Sulphides
The Rosmann East deposit is located adjacent to the Mountain of Light processing facility and was mined to the water table level. There is significant copper oxide mineralisation mapped on the western wall and known mineralisation in the pit floor. Previous drilling below the current pit floor indicate the extension of copper mineralisation and a number of the historical holes end in >1.5% copper grades. Consequently, LCCM has planned 2 x 100m RC holes to test for potential copper oxide and sulphide extensions below the current pit floor.
Mountain of Light - Heap Leach Pad, Copper Oxides
The Mountain of Light processing facility consists of three heap leach pads containing approximately 87,000m3 of leached material. Visual inspection and historical metallurgical metal balances indicate that copper metal remains in the heap leach pads which have the potential for retreatment to recover the metal through the existing processing facility at a low cost of production. LCCM will complete a shallow 250-hole air core programme on a 10 x 10m grid pattern for all existing heap leach pads. In total, 770m is planned to be drilled.
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.
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 ("NAE") and, in February 2017, acquired 50% of Cornwall Resources Limited ("CRL"), the joint venture vehicle which owns the Redmoor Tin/Tungsten project in Cornwall, UK. In June 2018, CRL began its 2018 Phase 1 drilling programme aimed at further increasing the tonnage and grade of the high-grade tin-tungsten-copper resource, which presently stands at an Inferred resource of 4.5Mt @ 1.0% SnEq (as reported in the announcement "Redmoor 2018 Resource Update" dated 20 March 2018). Based on the encouraging Phase 1 results to date, SML and NAE, have approved additional drilling to further expand the size of the resource and upgrade a portion of it to an indicated, as opposed to inferred, status. These are prerequisites to commencing an investment quality pre-feasibility study in mid-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 mid-2019.
