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.
3rd May 2019
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Sales Commence 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 that the Leigh Creek Copper Mine ("LCCM") operation has made its first sale of copper cement produced at the Mountain of Light processing facility.
Highlights:-
· Sale of the copper commenced with an initial shipment of 5 tonnes of copper cement (approximately 70% Cu).
· Production from the re-activated heap leach pads is continuing in line with management's expectations.
· Total production from the existing heap leach pads is forecast to be in the range of 150 tonnes to 180 tonnes of copper in cement.
· Offtake agreement in place with Adchem on attractive commercial terms for all expected production.
Commenting, John Peters, Managing Director, Strategic Minerals, said:
"This first sale of high grade copper concentrate, in the form of cement, firmly establishes LCCM as SML's second cash generating project. The initial sale, whilst relatively small, demonstrates the Board's commitment to test all aspects of the LCCM operation meticulously prior to launching a full scale re-start of operations.
"The current re-start activities have provided the management team with valuable insight into operational techniques at LCCM and will form the blueprint for the larger production activities at Paltridge North and Rosmann East. These are currently the focus of a feasibility study which is due for completion in the second half of 2019. Full operational production is scheduled for commencement late 2019 / early in 2020."
"The SML Board would like to thank PPM Global for its efforts in successfully re-starting operations at LCCM to schedule and also to acknowledge the support AdChem (Australia) has provided with the operational restart and the assistance it has provided in commencing the offtake agreement."
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 distribution rights to 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 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 12-hole 2018 drilling programme has now been completed and the resource update that resulted was announced in February 2019. In March 2019, the Company entered into arrangements to acquire the balance of the Redmoor Tin/Tungsten project in Cornwall, UK.
In March 2018, the Company completed the acquisition of the Leigh Creek Copper Mine situated in the copper rich belt of South Australia and brought the project into production in April 2019.
