TIDMSML
RNS Number : 0271V
Strategic Minerals PLC
31 October 2017
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.
31 October 2017
Strategic Minerals plc
("Strategic Minerals" or the "Company" or "SML")
High grade tin intersections continue at Redmoor
Joint Venture partners commit to further funding
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), the diversified
mineral production and development company, is pleased to announce
the results from holes 11-15 of the Phase 1 diamond drilling
programme at the Redmoor Tin-Tungsten Project located in Cornwall,
UK being undertaken through its joint venture vehicle, Cornwall
Resources Limited ("CRL").
HIGHLIGHTS:
-- Continued successful high-grade tin and tungsten assay
results within the Sheeted Vein System ("SVS")
-- Broad intercepts at improved grades compared to the previous
positive results
-- Improved confidence in the continuity of the high grade
zones
CRD013: 7.41 m @ 2.11 % SnEq from 298.74 m, including
1.15 m @ 7.45 % SnEq from 298.74 m
CRD014: 7.83 m @ 1.52 % SnEq from 156.15 m, including
2.07 m @ 3.05 % SnEq from 156.15 m
CRD015: 15.03 m @ 1.01 % SnEq from 311.99 m, including
3.01 m @1.51 % SnEq from 311.99 m, and
1.00 m @ 4.40 % SnEq from 322.02 m
CRD015: 6.63 m @ 1.44 % SnEq from 343.74 m, including
1.00m @ 5.56% SnEq from 343.74m
-- High grade mineralisation also intersected in Kelly Bray
Lode:
CRD011: 0.75 m @ 4.18% SnEq from 367.25 m; intercept
down-dip of known workings
-- The Phase 2 drilling programme continues to target high-grade
zones within the SVS
-- Drilling is expected to be finished imminently by when a
total of 20 holes will have been drilled during 2017
-- CRL's joint venture partners SML and New Age Exploration
("NAE") have committed to jointly fund a further GBP180,000 (in
addition to the further GBP150,000 announced via RNS 7 September
2017) to cover two additional Phase 2 holes (increasing Phase 2 to
a total of five holes), completion of the resource update and
project overhead costs for 2018
-- The results from the five Phase 2 holes will be released
after completion of logging, core cutting and laboratory analysis
and are expected by the end of 2017
-- A resource update is expected in Q1 2018
-- Community support remains positive, with 14 community
meetings held since November 2016
Commenting, Peter Wale, Director of Cornwall Resources Ltd,
said:
"These latest five holes at Redmoor have continued to build our
confidence in the calibre of the resource potential for this
project. The results reinforce our expectations for Redmoor to
reach production and become an integral part of the renaissance in
Cornish Mining, where we believe there to be significant
potential.
"We are extremely proud of the work that the local team at
Redmoor has undertaken, lead by Brett Grist, our Exploration
Manager in the region. I would also like to acknowledge Energold
Drilling for their consummate work on what is a rare UK located
drilling programme. Finally, I'd like to express my gratitude to
the local community for their continued confidence and support in
the project."
2017 Drilling Programme
On 21 March 2017, CRL began a 13-hole Phase 1 diamond drilling
programme aimed at increasing the high grade tin-tungsten-copper
resource at its Redmoor Project. The Phase 1 programme was funded
by the farm-in payment made by SML in February 2017. As a result of
this payment SML and NAE became equal 50% joint venture partners in
CRL and therefore the Redmoor Project.
Results for the first 10 Phase 1 holes (CRD001 to CRD010
inclusive) were published in the release dated 7 September
2017.
This update provides results for the remaining five Phase 1
holes from CRD011 to CRD015 inclusive.
Based on continued encouraging results in high-grade zones
within the SVS, CRL's joint venture partners SML and NAE have
agreed to fund a further GBP180,000 to cover an additional two
Phase 2 holes (increasing Phase 2 to a total of five holes),
completion of the resource update and project overhead costs for
2018.
Currently 19 of the 20 holes of the combined Phase 1 and 2 2017
programme have been completed and drilling is expected to be
finished imminently.
The results from the five Phase 2 holes will be released after
completion of logging, core cutting and laboratory analysis. These
results are expected by the end of 2017.
Drilling Results
Of the four holes reported within this release that were
targeted at the SVS, three successfully intersected high-grade
zones within the SVS. The results from these latest holes have been
particularly encouraging and continue to build on and confirm the
previously reported SVS high-grade zone results, with, as an
example CRD015 intercepting 15.03 m @1.01% SnEq from 311.99 m.
One of the five holes reported within this release, CRD011,
targeted the Kelly Bray lode; and successfully intersected a narrow
but exceptionally high-grade lode, grading 8.70% Cu over 0.75 m
from 367.25 m. This intersection was directly down dip of known
mine workings in an area that had previously been reported as an
Exploration Target and which continues to remain such.
Sheeted Vein System (SVS) High Grade Zones
CRL's 2017 drilling targeted at high-grade zones within the SVS
has continued to be successful. Holes CRD012, CRD013, CRD014, and
CRD015 reported within this release were all directed at this
target. Three of these holes have yielded more high-grade
intersections, with best widths per hole ranging from 7.4 m to 15.0
m (see Appendix 1, Table (a) - Significant Intercepts). Highlights
are provided below:
-- CRD013: 7.41 m @ 2.11 % SnEq from 298.74 m, including 1.15 m @ 7.45 % SnEq from 298.74 m
-- CRD014: 7.83 m @ 1.52 % SnEq from 156.15 m, including 2.07 m @ 3.05 % SnEq from 156.15 m
-- CRD015: 15.03 m @ 1.01 % SnEq from 311.99 m, including 3.01 m
@1.51 % SnEq from 311.99 m, and 1.00 m @ 4.40 % SnEq from 322.02
m
-- CRD015: 6.63 m @ 1.44 % SnEq from 343.74 m, including 1.00m @ 5.56% SnEq from 343.74 m
Hole CRD012 also targeted the eastern edge of the
mineralisation, close to surface. Anomalous but non-significant
mineralisation was intersected in CRD012 including 0.53 m @ 1.68%
SnEq from 50.11 m and 2.00 m @ 0.96% SnEq from 122.07 m, locating
the eastern extreme of the SVS mineralisation, where mineralisation
is less well developed.
The thicknesses quoted above, and all other thicknesses in this
report are, unless otherwise stated, apparent thicknesses.
Estimated true thicknesses are shown in Appendix 1. For
convenience, significant intercepts are also expressed in terms of
a calculated tin equivalent value(1) (SnEq).
These results have continued to identify multiple high-grade
zones within the SVS, which are interpreted to plunge to the west
at around 25˚.
1 Equivalent metal calculation notes; Sn(Eq)% = Sn%*1 +
WO3%*1.43 + Cu%*0.40. Commodity price assumptions: WO3 US$
33,000/t, Sn US$ 22,000/t, Cu US$ 7,000/t. Recovery assumptions:
total WO3 recovery 72%, total Sn recovery 68% & total Cu
recovery 85% and payability assumptions of 81%, 90% and 90%
respectively.
SVS High-Grade Zone Exploration Potential
The SVS high-grade zone significant intercepts continue to
represent potentially attractive underground mining targets. The
SML and NAE Directors continue to believe that the delineation of
the SVS high-grade zones has the potential to significantly
increase the grade of the SVS Resource previously stated in the 15
December 2015 Resource Update announcement, albeit within a reduced
tonnage, and may support a larger tonnage of high grade material
than the high-grade lode resource reported in the 15 December 2015
resource update.
The Phase 2 drilling programme has remained focused on
continuing to define, and increase confidence in, the continuity of
these high-grade zones within the SVS.
High-Grade Lodes
Kelly Bray Lode
Hole CRD011 was drilled to target the Kelly Bray Lode, which is
located in the northern part of the area, and dips to the south.
This hole was targeted beneath known workings on the Kelly Bray
Lode in an area where an Exploration Target had previously been
delineated and was successful in identifying narrow but high grade
mineralisation that had not been mined. Results are as detailed in
Appendix 1, Table (b), with highlights summarised below:
-- CRD011: 0.75 m @ 4.18% SnEq from 367.25 m; intercept down-dip of known workings
Community
CRL continues to prioritise maintaining a close working
relationship with the local community and local and County
Councils. No complaints have been received to date regarding the
drilling and associated activities. Where possible during the
programme, local employment has been created. Following the most
recent batch of results, a community display was held over two days
to provide an opportunity for community members to hear about
progress from the drilling programme.
CRL is continuing collaboration arrangements with local and
regional universities including Camborne School of Mines, the
University of Plymouth, and the University of Portsmouth.
Future Work Programme
The five-hole Phase 2 drilling programme is continuing to target
high-grade zones within the SVS with the objective of defining a
high-grade resource of sufficient size to potentially support an
underground mining operation.
Currently 19 of the 20 holes of the combined Phase 1 and 2 2017
programme have been completed and drilling is expected to be
finished imminently.
The results from the five Phase 2 holes will be released after
completion of logging, core cutting and laboratory analysis and are
expected by the end of 2017.
Resource Update
Following the receipt of results from the five Phase 2 holes, a
resource update will be undertaken, results for which are expected
in Q1 2018. The outcome of this will then be used to inform further
potential work.
COMPETENT PERSON'S STATEMENT
The information in this report that relates to Exploration
Results is based on information compiled and reviewed by Dr Mike
Armitage, who is a Principal Geologist of SRK Consulting (UK) Ltd,
a Member of the Institute of Materials, Minerals and Mining
(MIMMM), a Fellow of the Geological Society of London (FGS), a
Chartered Geologist of the Geological Society of London (CGeol) and
a Chartered Engineer, UK (CEng). Dr Armitage has sufficient
experience which is 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 in the 2012
Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Dr. Armitage is also
a Competent Person "as defined in the Note for Mining and Oil &
Gas Companies which form part of the AIM Rules for Companies". This
will further tailor the statement towards the AIM market. Dr
Armitage has consented to the inclusion in the report of the
matters based on his information in the form and context in which
it appears.
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.
For further information, please contact:
+61 (0) 414
Strategic Minerals plc 727 965
John Peters
Managing Director
www.strategicminerals.net
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Notes to Editors
Strategic Minerals Plc is an AIM-quoted, diversified mineral
development and production company with projects in the United
States of America, the UK and Australia. The Company is focused on
acquiring and developing cash generative, high quality projects
which meet local market demand for commodities and utilising this
cash flow to undertake value added exploration.
In September 2011, Strategic Minerals purchased its first cash
generating asset; the Cobre magnetite tailings dam project in New
Mexico, USA which it brought into production in 2012 and which
continues to provide a revenue stream for the Company. The
portfolio was expanded in January 2016 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 earths. 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 has now
been completed and drilling at the project has commenced.
APPIX 1
CRL 2017 Drilling significant intercepts for Holes
CRD011-CRD015
(a) Sheeted Vein System High-Grade Zone Intercepts
Drillhole From To Intersection Est. Sn Eq Sn W03 Cu Intercept
Thickness True
Thickness
(m) (m) (m) (m) (%) (%) (%) (%)
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- ---------
CRD013 298.74 306.15 7.41 4.75 2.11 1.15 0.43 0.88 HG SVS
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- ---------
including 298.74 299.89 1.15 0.70 7.45 2.92 2.33 2.99 HG SVS
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- ---------
CRD014 144.46 147.78 3.32 2.70 1.31 0.19 0.67 0.40 HG SVS
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- ---------
CRD014 156.15 163.98 7.83 7.20 1.52 0.06 0.93 0.32 HG SVS
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- ---------
including 156.15 158.22 2.07 1.70 3.05 0.05 2.09 0.06 HG SVS
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- ---------
CRD015 210.84 217.84 7.00 5.47 0.71 0.67 0.01 0.07 HG SVS
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- ---------
CRD015 296.00 305.23 9.23 6.89 0.81 0.51 0.12 0.30 HG SVS
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- ---------
including 296.00 297.00 1.00 0.86 2.71 2.54 0.11 0.03 HG SVS
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- ---------
CRD015 311.99 327.02 15.03 11.34 1.01 0.41 0.36 0.19 HG SVS
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- ---------
including 311.99 315.00 3.01 2.51 1.51 0.17 0.84 0.33 HG SVS
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- ---------
including 322.02 323.02 1.00 0.75 4.40 4.18 0.11 0.14 HG SVS
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- ---------
including 326.01 327.02 1.01 0.75 3.48 0.27 2.22 0.10 HG SVS
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- ---------
CRD015 343.74 350.37 6.63 4.72 1.44 0.44 0.57 0.48 HG SVS
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- ---------
including 343.74 344.74 1.00 0.81 5.56 0.27 3.63 0.29 HG SVS
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- ---------
including 345.74 346.75 1.01 0.82 1.50 1.00 0.01 1.20 HG SVS
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- ---------
(b) High-Grade Lode Intercepts
Drillhole From To Intersection Est. Sn Sn W03 Cu Lode
Thickness True Eq
Thickness
(m) (m) (m) (m) (%) (%) (%) (%)
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- -----
Kelly
Bray
CRD011 367.25 368.00 0.75 0.61 4.18 0.69 0.01 8.70 Lode
---------- ------ ------ ------------ ---------- ----- ----- ----- ----- -----
APPIX 2
Table of drillhole collar co-ordinates
Hole RL/ Length/
No. Easting Northing m Azimuth Dip m Diameter
-------- -------- --------- ---- -------- ---- -------- -----------------
0-296m HQ3, 296m
CRD011 236067 71204 192 320 -63 399.10 to EoH NQ3
-------- -------- --------- ---- -------- ---- -------- -----------------
CRD012 236309 71177 212 168 -50 181.55 0-EoH HQ3
-------- -------- --------- ---- -------- ---- -------- -----------------
0-184m HQ3, 184m
CRD013 235733 71178 172 138 -50 427.06 to EoH NTW
-------- -------- --------- ---- -------- ---- -------- -----------------
CRD014 236076 71179 192 195 -50 280.35 0-280m HQ3
-------- -------- --------- ---- -------- ---- -------- -----------------
0-181m HQ3, 270m
CRD015 235635 71126 168 128 -57 411.60 to EoH NTW
-------- -------- --------- ---- -------- ---- -------- -----------------
Notes:
All collar co-ordinates are in British National
Grid format. Azimuths are relative to grid north.
All hole collar positions
surveyed by DGPS
Abbreviation EoH:
End of Hole
Core diameters: HQ3: 61mm,
NTW 56mm, BTW 42mm, NQ3 45mm
This information is provided by RNS
The company news service from the London Stock Exchange
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