TIDMCUSN
RNS Number : 2325B
Cornish Metals Inc.
09 June 2021
CORNISH METALS RELEASES UPDATED MINERAL RESOURCE ESTIMATE FOR
SOUTH CROFTY TIN MINE
Indicated Resource Increases 10.2% to 2.08 Mt Grading 1.59% Tin
for the Lower Mine
Inferred Resource Increases 129.8% to 1.94 Mt Grading 1.67% Tin
for the Lower Mine
June 9, 2021
Cornish Metals Inc. (TSX-V/AIM: CUSN) ("Cornish Metals" or the
"Company"), a mineral exploration and development company focused
on its projects in Cornwall, United Kingdom, is pleased to announce
the results of an updated Mineral Resource Estimate ("MRE") for
South Crofty in accordance with the JORC Code (2012). The Mineral
Resource is divided into the "Lower Mine" and "Upper Mine" areas
for reporting purposes. A summary of the updated MRE is tabulated
below:
South Crofty Summary Mineral Resource Estimate
Area Classification Mass (000' tonnes) Grade Contained Tin / Tin Increase in contained
Equivalent (000' tonnes) Tin / Tin equivalent
from 2016 MRE
---------------- ------------------- ----------- ------------------------- -------------------------
Lower Mine Indicated 2,084 1.59% Sn 33 10.2%
---------------- ------------------- ----------- ------------------------- -------------------------
Inferred 1,937 1.67% Sn 32 129.8%
----------------------------- ------------------- ----------- ------------------------- -------------------------
Upper Mine Indicated 277 1.01% SnEq 3 9.5%
---------------- ------------------- ----------- ------------------------- -------------------------
Inferred 493 0.93% SnEq 5 8.0%
----------------------------- ------------------- ----------- ------------------------- -------------------------
Richard Williams, CEO of Cornish Metals, stated, "We are very
pleased with the outcome of this new Mineral Resource Estimate,
which shows a material increase in both tonnage and contained tin
in the ground at South Crofty. Following on from our successful
surface drilling campaign in 2020, where we intersected high-grade
tin mineralisation below the historical workings, this new Mineral
Resource Estimate confirms our belief in the resource expansion
potential at South Crofty.
"Coming at a time when governments around the world are
increasingly focussed on reducing carbon emissions, enhancing
security of supply of critical minerals, investing in technology
and developing the green economy, this is a further demonstration
that Cornwall has the potential to become a significant tin
producer once again and make a valuable contribution to providing
the responsibly sourced technology metals that we need to meet our
climate change goals."
Overview
-- P&E Mining Consultants provided an initial MRE in 2016.
Since then, additional sampling information has been audited,
verified and added to the resource model leading to an updated MRE
for the "Lower Mine" and a re-stated MRE for the "Upper Mine" using
updated metal prices to calculate tin equivalent grades;
-- The "Lower Mine" MRE is reported using a 0.6% tin ("Sn")
cut-off grade and the "Upper Mine" is reported using a 0.6% tin
equivalent ("SnEq.") cut-off grade, the same cut-off grades as the
2016 MRE;
-- The MRE was prepared by Cornish Metals' in-house geology team
and independently reviewed and verified by Nicholas Szebor of AMC
Consultants (UK) Ltd ("AMC"), who takes responsibility for the
estimate;
-- The "Lower Mine" contains tin mineralisation within
quartz-tourmaline veins or "lode" structures, which are hosted
entirely within granitic rocks;
-- The "Upper Mine" contains tin, copper and zinc mineralisation
within quartz-chlorite veins, predominantly hosted within
meta-sedimentary units;
-- AMC will prepare and file an updated NI 43-101 Technical
Report within 45 days of this announcement; and
-- The major lode structures that comprise the Mineral Resource
remain open along strike and to depth.
The full classified MRE for the "Lower Mine" is shown in Table 1
and the full classified MRE for the "Upper Mine" is shown in Table
2 below.
Table 1: South Crofty Lower Mine Mineral Resource Estimate at 0.6% Sn Cut-Off Grade ((1-12)
)
Lode/Zone Mass Grade Contained Tin
------------- ------------- ------------------------------
(kt) % Sn (t)
------------- ------------- ------------------------------
No. 2 248 1.40 3,476
------------- ------------- ------------------------------
No. 4 505 1.82 9,197
------------- ------------- ------------------------------
No. 8 115 2.07 2,381
------------- ------------- ------------------------------
No. 9 - - -
------------- ------------- ------------------------------
Dolcoath 422 1.55 6,542
------------- ------------- ------------------------------
North Pool Zone 319 1.49 4,738
------------- ------------- ------------------------------
Providence - - -
------------- ------------- ------------------------------
Pryces/Tincroft 334 1.26 4,198
------------- ------------- ------------------------------
Roskear 141 1.82 2,566
------------- ------------- ------------------------------
Total Indicated 2,084 1.59 33,098
------------- ------------- ------------------------------
No. 2 55 1.26 691
------------- ------------- ------------------------------
No. 4 274 1.54 4,208
------------- ------------- ------------------------------
No. 8 151 2.36 3,566
------------- ------------- ------------------------------
No. 9 196 1.57 3,086
------------- ------------- ------------------------------
Dolcoath 287 1.42 4,075
------------- ------------- ------------------------------
North Pool Zone 209 1.44 3,004
------------- ------------- ------------------------------
Providence 71 1.83 1,299
------------- ------------- ------------------------------
Pryces/Tincroft 167 1.48 2,472
------------- ------------- ------------------------------
Roskear 527 1.90 9,995
------------- ------------- ------------------------------
Total Inferred 1,937 1.67 32,396
------------- ------------- ------------------------------
Notes to Table 1:
(1) The Mineral Resource Estimate is reported in accordance with
the requirements of the Joint Ore Reserves Committee of the Australian
Institute of Mining and Metallurgy, the JORC Code (2012).
(2) The Qualified Person for this Mineral Resource Estimate is:
Mr Nicholas Szebor, MCSM, MSc, BSc, CGeol, EurGeol, FGS, of AMC
Consultants (UK) Ltd.
(3) Mineral Resources for the "Lower Mine" are estimated by
conventional block modelling based on wireframing at 0.4% Sn
cut-off grade whilst honouring lode continuity and by ordinary
kriging or inverse distance to the power of 3 grade interpolation.
(4) For the purpose of this Mineral Resource Estimate, assays
were capped by lode for the "Lower Mine" between 4% Sn and 20%
Sn.
(5) Bulk densities of 2.77t/m(3) have been applied for volume
to tonnes conversion for the Lower Mine.
(6) Mineral Resources for the Lower Mine have had a minimum mining
width of 1.20m applied using 0.0% Sn dilution.
(7) Mineral Resources are estimated from a depth of approximately
350m to a depth of approximately 870m.
(8) Mineral Resources are classified as Indicated and Inferred
based on drill hole and channel sample distribution and density,
interpreted geological continuity and quality of data.
(9) The Mineral Resources have been depleted for past mining,
however, they contain portions that may not be recoverable pending
further engineering studies.
(10) Mineral Resources which are not Mineral Reserves do not
have demonstrated economic viability. The estimate of Mineral
Resources may be materially affected by environmental, permitting,
legal, title, taxation, socio-political, marketing, or other
relevant issues.
(11) Effective date June 7, 2021.
(12) Totals presented in the table are reported from the resource
model are subject to rounding and may not sum exactly.
Table 2: South Crofty Upper Mine Mineral Resource Estimate at 0.6% SnEq. Cut-Off Grade ((1-12)
)
Lode/Zone Mass Grade Contained Tin Equivalent
------ ------------------------------ ---------------------------
(kt) % Sn % Cu % Zn % SnEq. (t)
------ ------ ----- ----- -------- ---------------------------
Dolcoath Middle 95 0.70 0.86 0.17 1.03 970
------ ------ ----- ----- -------- ---------------------------
Dolcoath Middle Branch 41 0.84 0.37 0.02 0.97 402
------ ------ ----- ----- -------- ---------------------------
Dolcoath Upper Main - - - - - -
------ ------ ----- ----- -------- ---------------------------
Dolcoath Upper South South Branch - - - - - -
------ ------ ----- ----- -------- ---------------------------
Dolcoath NVC - - - - - -
------ ------ ----- ----- -------- ---------------------------
Dolcoath Little NW 13 0.68 0.16 0.89 0.82 105
------ ------ ----- ----- -------- ---------------------------
Dolcoath Little NW FW - - - - - -
------ ------ ----- ----- -------- ---------------------------
Dolcoath Little NE - - - - - -
------ ------ ----- ----- -------- ---------------------------
Dolcoath South Entral 128 0.60 0.91 1.02 0.96 1,309
------ ------ ----- ----- -------- ---------------------------
Total Indicated 277 0.67 0.78 0.57 1.01 2,785
------ ------ ----- ----- -------- ---------------------------
Dolcoath Middle 22 0.75 0.05 0.01 0.77 172
------ ------ ----- ----- -------- ---------------------------
Dolcoath Middle Branch - - - - - -
------ ------ ----- ----- -------- ---------------------------
Dolcoath Upper Main 285 0.60 0.60 0.23 0.83 2,376
------ ------ ----- ----- -------- ---------------------------
Dolcoath Upper South South Branch 91 0.49 0.72 1.78 0.92 836
------ ------ ----- ----- -------- ---------------------------
Dolcoath NVC 45 0.64 1.09 0.24 1.05 469
------ ------ ----- ----- -------- ---------------------------
Dolcoath Little NW - - - - - -
------ ------ ----- ----- -------- ---------------------------
Dolcoath Little NW FW 1 0.81 0.03 0.25 0.84 8
------ ------ ----- ----- -------- ---------------------------
Dolcoath Little NE 48 1.13 0.55 1.43 1.46 700
------ ------ ----- ----- -------- ---------------------------
Dolcoath South Entral - - - - - -
------ ------ ----- ----- -------- ---------------------------
Total Inferred 493 0.64 0.63 0.63 0.93 4,561
------ ------ ----- ----- -------- ---------------------------
Notes to Table 2:
(1) The Mineral Resource Estimate is reported in accordance with
the requirements of the Joint Ore Reserves Committee of the Australian
Institute of Mining and Metallurgy, the JORC Code (2012).
(2) The Qualified Person for this Mineral Resource Estimate is:
Mr Nicholas Szebor, MCSM, MSc, BSc, CGeol, EurGeol, FGS, of AMC
Consultants (UK) Ltd.
(3) Mineral Resources for the "Upper Mine" are estimated by conventional
3D block modelling based on wireframing at 0.5% SnEq. cut-off
grade and a minimum width of 1.2m and estimated by inverse distance
to the power of 3 grade interpolation.
(4) SnEq. is calculated using the formula: SnEq% = Sn% + (Cu%
x 0.360) + (Zn% x 0.092). Cornish Metals has used metal prices
of US$24,000/Tonne Sn, US$9,000/Tonne Cu, and US$2,800/Tonne
Zn. Assumptions for process recovery are 88.5% for Sn, 85% for
Cu and 70% for Zn.
(5) For the purpose of this Mineral Resource Estimate, assays
were capped by lode for the "Upper Mine" at 6% for Sn, 4% for
Cu and 20% for Zn.
(6) Bulk densities of 3.00t/m(3) have been applied for volume
to tonnes conversion for the Upper Mine.
(7) Mineral Resources are estimated from near surface to a depth
of approximately 350 m.
(8) Mineral Resources are classified as Indicated and Inferred
based on drill hole and channel sample distribution and density,
interpreted geological continuity and quality of data.
(9) The Mineral Resources have been depleted for past mining,
however, they contain portions that may not be recoverable pending
further engineering studies.
(10) Mineral Resources which are not Mineral Reserves do not
have demonstrated economic viability. The estimate of Mineral
Resources may be materially affected by environmental, permitting,
legal, title, taxation, socio-political, marketing, or other
relevant issues.
(11) Effective date June 7, 2021.
(12) Totals presented in the table are reported from the resource
model are subject to rounding and may not sum exactly.
Independent Qualified Person
This Mineral Resource Estimate was prepared by Mr. Nicholas
Szebor (MCSM, BSc, MSc, CGeol, EurGeol, FGS), Acting General
Manager and Principal Geologist of AMC, a Qualified Person under NI
43-101 and a Competent Person as defined under the JORC Code
(2012). A Technical Report disclosing the Mineral Resource Estimate
in accordance with the requirements of National Instrument 43-101
will be prepared by AMC on behalf of Cornish Metals and filed on
SEDAR within 45 days of this news release. Mr. Szebor consents to
the inclusion in this announcement of the matters based on his
information in the form and context in which it appears .
Technical Information
The technical information in this news release has been compiled
by Mr. Owen Mihalop. Mr. Mihalop has reviewed and takes
responsibility for the technical information provided. Mr. Owen
Mihalop (MCSM, BSc (Hons), MSc, FGS, MIMMM, CEng) is Chief
Operating Officer for Cornish Metals Inc. and has sufficient
experience 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 under the
JORC Code (2012) and as a Qualified Person under NI 43-101. Mr.
Mihalop consents to the inclusion in this announcement of the
matters based on his information in the form and context in which
it appears .
Use of Foreign Reporting Code
Mineral Resources are classified in accordance with the JORC
Code (2012). The confidence categories assigned under the JORC Code
were reconciled to the confidence categories in the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM) Definition
Standards - for Mineral Resources and Mineral Reserves May 2014
(the CIM Definition Standards). Mineral Resource classifications of
"Indicated" and "Inferred" have been used in this press
release.
The South Crofty data has been reviewed and verified in relation
to CIM best operating practices for reporting and for scope and
content of JORC and NI 43-101 reporting through a due diligence
conducted by Mr. Nicholas Szebor (MCSM, BSc, MSc, CGeol, EurGeol,
FGS), Acting General Manager and Principal Geologist of AMC, an
independent qualified person on behalf of the Company. The
technical report in respect of the updated Mineral Resource, when
filed, will contain more detailed information concerning individual
responsibilities, associated quality assurance and quality control,
and other data verification matters, and the key assumptions,
parameters and methods used by the Company.
ABOUT CORNISH METALS
Cornish Metals completed the acquisition of the South Crofty tin
and United Downs copper / tin projects, plus additional mineral
rights located in Cornwall, UK, in July 2016 (see Company news
release dated July 12, 2016 ). The additional mineral rights cover
an area of approximately 15,000 hectares and are distributed
throughout Cornwall. Some of these mineral rights cover old mines
that were historically worked for copper, tin, zinc, and
tungsten.
The South Crofty project covers the former producing South
Crofty tin mine located beneath the towns of Pool and Camborne,
Cornwall. South Crofty mine closed in 1998 following over 400 years
of continuous production. Since acquiring the project in 2016,
Cornish Metals has completed and published maiden NI 43-101 mineral
resources for South Crofty using the vast archive of historical
production data and more recent drilling completed between 2007 and
2013. In 2017, Cornish Metals completed a Preliminary Economic
Assessment that demonstrated the economic viability of re-opening
the mine. Additionally, Cornish Metals has undertaken extensive
pilot-scale water treatment trials and successfully applied for and
received the necessary environmental permits to abstract, treat and
discharge mine water in order to dewater the mine. Planning
permissions for the operation of the mine and re-development of the
surface facilities have been secured and construction of the water
treatment plant foundations commenced. The dewatering pumps,
variable speed drives and new high-voltage power supply have been
delivered to site.
For additional information please contact:
In North America:
Irene Dorsman at (604) 200 6664 or by e-mail at
irene@cornishmetals.com
SP Angel Corporate
Finance LLP
(Nominated Adviser
& Joint Broker) Tel: +44 203 470 0470
Richard Morrison
Charlie Bouverat
Grant Barker
Hannam & Partners
(Joint Broker) Tel: +44 207 907 8500
Matthew Hasson
Andrew Chubb
Ernest Bell
Blytheweigh
(Financial PR/IR-London) Tel: +44 207 138 3204
Tim Blythe tim.blythe@blytheweigh.com
Megan Ray megan.ray@blytheweigh.com
ON BEHALF OF THE BOARD OF DIRECTORS
"Richard D. Williams"
Richard D. Williams, P.Geo
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release .
Caution regarding forward looking statements
This news release contains "forward-looking statements".
Forward-looking statements, while based on management's best
estimates and assumptions at the time such statements are made, are
subject to risks and uncertainties that may cause actual results to
be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks
related to receipt of regulatory approvals, risks related to
general economic and market conditions; risks related to the
COVID-19 global pandemic and any variants of COVID-19 which may
arise; risks related to the availability of financing; the timing
and content of upcoming work programs; actual results of proposed
exploration activities; possible variations in Mineral Resources or
grade; failure of plant, equipment or processes to operate as
anticipated; accidents, labour disputes, title disputes, claims and
limitations on insurance coverage and other risks of the mining
industry; changes in national and local government regulation of
mining operations, tax rules and regulations.
Although Cornish Metals has attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. Cornish Metals undertakes no obligation or
responsibility to update forward-looking statements, except as
required by law.
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
Appendix
"Cu" means Copper
"grade(s)" means the quantity of ore or metal in a specified
quantity of rock
"Indicated Mineral Resource" is that part of a Mineral Resource
for which quantity, grade or quality, densities, shape and physical
characteristics are estimated with sufficient confidence to allow
the application of mining, processing, metallurgical,
infrastructure, economic, marketing, legal, environmental, social
and governmental factors to support mine planning and evaluation of
the economic viability of the deposit. Geological evidence is
derived from adequately detailed and reliable exploration, sampling
and testing and is sufficient to assume geological and grade or
quality continuity between points of observation. An Indicated
Mineral Resource has a lower level of confidence than that applying
to a Measured Mineral Resource and may only be converted to a
probable mineral reserve.
"Inferred Mineral Resource" is that part of a Mineral Resource
for which quantity and grade or quality are estimated on the basis
of limited geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity. An Inferred Mineral Resource has a lower level of
confidence than that applying to an Indicated Mineral Resource and
must not be converted to a mineral reserve. It is reasonably
expected that the majority of Inferred Mineral Resources could be
upgraded to Indicated Mineral Resources with continued exploration.
An Inferred Mineral Resource is based on limited information and
sampling gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes.
"JORC Code" means the 2012 edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves prepared by the Joint Ore Reserves Committee of the
Australasian Institute of Mining and Metallurgy, Australian
Institute of Geoscientists and Minerals Council of Australia. The
JORC Code is an acceptable foreign code for purposes of NI
43-101.
"kt" means thousand tonnes
"Lodes" means a vein of metal ore in the earth
"MRE" means Mineral Resource Estimate
"Mt" means million tonnes
"Sn" means Tin
"Sn Eq" means Tin Equivalent
"Zn" means Zinc
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