TIDMSML
RNS Number : 2251B
Strategic Minerals PLC
19 September 2018
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.
19 September 2018
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Exceptional Assay Results Pave the Way to Redmoor 2019 PFS
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing
mineral company actively developing projects prospective for
battery materials, is excited to announce that the results from the
initial two holes from the 2018 Redmoor drilling programme yielded
the Company's best drill results at the project to date. Following
the positive drill results, both the Company, and its 50% joint
venture partner, New Age Exploration ("NAE"), are now considering
expanding the current drilling programme and will plan additional
phases to enable its 50% owned joint venture vehicle, Cornwall
Resources Limited ("CRL"), to be in a position to commence a
project pre-feasibility study ("PFS") in 2019.
HIGHLIGHTS
-- Increasing grade shown in these outstanding results with
almost all at higher grades than the current high-grade inferred
resource (1.0% SnEq).
-- Multiple high-grade zones successfully intercepted within the
Sheeted Vein System ("SVS") in both of the first 2 holes of the
Phase 1 programme:
CRD021: 14.21m @ 1.13% SnEq from 644.63m, including
1.59m @ 5.06% SnEq
CRD021: 7.65m @ 1.48% SnEq from 670.02m, including
1.09m @ 4.84% SnEq
CRD022: 9.75m @ 1.01% SnEq from 405.00m, including
1.50m @ 3.42% SnEq
CRD022: 14.10m @ 1.44% SnEq from 420.25m, including
2.00m @ 4.55% SnEq
CRD022: 10.88m @ 0.92% SnEq from 483.36m, including
4.20m @ 1.89% SnEq
-- The above intercepts provide strong evidence of down-dip
extensions of the high-grade zones within the SVS (up to 180m below
existing intercepts) and also potentially extend this deeper
mineralisation along-strike.
-- Drilling of 3 further holes (CRD023, CRD024 and CRD025) of
the Phase 1 programme have now been completed and these holes are
in the process of being sampled and analysed. Visually, all three
holes appear to have intersected multiple zones of tungsten and
copper mineralisation and are of a similar appearance to that in
CRD021 and CRD022.
-- Drilling of the final two Phase 1 holes (CRD026 and CRD027)
has commenced and is expected to be completed in early October.
-- Final results from the Phase 1 programme are expected to be
released in the December quarter.
-- The deposit remains open at depth and along strike to the west.
-- Based on the outstanding Phase 1 results to date, CRL's
shareholders, SML and NAE, are reviewing plans to undertake
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 2019.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"The initial results from the first two holes have exceeded our
expectations and they reinforce the team's considered opinion that
the resource grade increases at depth.
"Apart from the excitement generated by the extremely positive
assay results from the first two holes, the results pave the way
for CRL to commence an investment quality pre-feasibility study in
2019. While the Board and the Company's shareholders have
confidence in the value of its investment in CRL, it considers that
delivery of a PFS is critical to the market in determining the
value attributed to CRL by the Company.
"A report on CRL's additional drilling plans is expected within
a month and SML looks forward to updating the market at this
time."
Redmoor Geology Overview - Sheeted Vein System ("SVS")
The SVS is a body in which numerous closely-spaced sub-parallel
veins carry high-grade tin, tungsten and copper mineralisation. The
SVS strikes at approximately 070deg and dips at approximately 70deg
to the north. The SVS has previously been demonstrated to be
continuous along a strike length of over 650m with a thickness of
approximately 100m, and a variable known dip extent (250-450m). The
SVS presently remains open down-dip over much of its length. Within
this volume are a series of discrete high-grade zones, sub-parallel
to the overall SVS envelope. It is this high-grade material that is
being tested by the current drill programme, and which CRD021 and
CRD022 have successfully intersected. The 2018 resource contained
eight volumes in this high-grade material each ranging from
135,000t to 1,200,000t (at a density of 2.9g/cm(3)).
2018 Phase 1 Drilling Programme
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 within the SVS at its Redmoor Project,
which presently stands at an Inferred resource of 4.5Mt @ 1.0%
SnEq(1) . The seven-hole Phase 1 programme was funded by SML and
NAE each having contributed GBP332,000 for the programme.
Assay results for the first two holes, CRD021 and CRD022, have
now been received from the laboratory (ALS Loughrea) and are
reported herein.
Drilling of 3 further holes (CRD023, CRD024 and CRD025) of the
Phase 1 programme is now complete and these holes are in the
process of being sampled and analysed. All three holes have
intersected multiple zones of tungsten and copper mineralisation of
a similar appearance to that in CRD021 and CRD022.
The final two holes of Phase 1 are underway and drilling is
expected to complete in early October 2018. Due to encouraging
mineralisation, the majority of holes have been slightly extended
beyond planned depths, with the total drilled depth for the Phase 1
programme now forecast to be around 4,200m.
Phase 1 2018 Initial Drilling Results - Highlighting depth
extensions and increasing grade with depth
A summary of the significant intercepts in CRD021 and CRD0022
are provided below with details shown in Appendix 1(2) :
CRD021
CRD021: 14.21m @ 1.13% SnEq from 644.63m, including
1.59m @ 5.06% SnEq
CRD021: 7.65m @ 1.48% SnEq from 670.02m, including
1.09m @ 4.84% SnEq
Hole CRD021 was designed and drilled to test a deep extension of
the SVS well below the existing inferred resource. The hole was
successful in intersecting mineralisation more than 180m below that
seen in nearby previous holes. As with CRD019, which was the
deepest hole of the 2017 programme, this hole provides strong
evidence for the presence of down-dip extensions of the
mineralisation, with potentially increasing grade with depth.
CRD022
CRD022: 9.75m @ 1.01% SnEq from 405.00m, including
1.50m @ 3.42% SnEq
CRD022: 14.10m @ 1.44% SnEq from 420.25m, including
2.00m @ 4.55% SnEq
CRD022: 10.88m @ 0.92% SnEq from 483.36m, including
4.20m @ 1.89% SnEq
Hole CRD022 was drilled to intersect mineralisation to the west
of CRD019, the deepest and highest-grade hole drilled prior to the
current drilling programme, and to provide continuity in order to
connect this well mineralised hole, that is not yet part of the
inferred resource, into the resource model. CRD022 was highly
successful, producing grades and widths that compare favourably
with those of CRD019 and which may offer evidence of strike
continuity of the mineralised system over the approximate 75m
separation between the two holes.
CRD024, CRD024 and CRD025 - Results Pending
Drilling of 3 further holes (CRD023, CRD024 and CRD025) of the
Phase 1 programme is now complete and these holes are in the
process of being sampled and analysed. During logging, the
mineralisation in these three holes was visually distinctive -
presenting as clusters of quartz veins with large wolframite
crystals and locally abundant chalcopyrite. All three of these
holes (CRD023, CRD024, and CRD025) have intersected multiple zones
of mineralisation of a similar appearance to that in CRD021 and
CRD022, as targeted, and assays are now pending:
-- CRD023 was planned to test the western down-dip extension of
the 2018 inferred resource. It successfully hit the wider SVS from
600 to 700m, and a zone of wolframite-rich veins was identified
during logging within this zone.
-- CRD024 targeted the eastern down-dip extension of the 2018
model. 530-640m clusters of veins were intersected in the wider
SVS, carrying coarse wolframite.
-- CRD025 successfully tested the eastern areas between the
resource model and CRD019, which intersected good mineralisation in
the 2017 drill programme, but which was excluded from the 2018
inferred resource due to wide drill spacing. CRD025 appears to have
intersected extensive wolframite and chalcopyrite carrying veins at
the anticipated depth. These upper parts of the system are
considered by CRL to be high copper tenor, and CRD025 appears to
confirm this.
Future Work Programme
Following the outstanding results to date from the Phase 1
drilling programme and considering the comparable strong appearance
of as yet un-assayed mineralisation in more recent drill core,
CRL's shareholders, SML and NAE, have recommended additional
drilling, designed to continue on directly after the Phase 1
programme, aimed at further expanding the resource and migrating a
portion of the resource from inferred to indicated in order to
support the commencement of a PFS in 2019.
Once the drilling proposals are assessed and, provided it is
supported by both SML and NAE, the market will be updated.
[1] SML Announcement, 20 March 2018 - Redmoor 2018 Resource
Update
[2] The thicknesses quoted below, 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 (SnEq). 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: WO3 recovery 72%, Sn recovery
68% & Cu recovery 85% and payability assumptions of 81%, 90%
and 90% respectively
COMPETENT PERSON'S STATEMENT
The information in this report that relates to Exploration
Results is based on information compiled and/or reviewed by Paul
Gribble C.Eng., a Fellow of the Institute of Materials, Minerals
and Mining (FIMMM), and who is Principal Geologist of Geologica UK
(Geologica). Paul Gribble 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'. Paul Gribble 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". Paul
Gribble 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.
APPIX 1 - CRL 2018 Drilling significant intercepts for holes
CRD021 - CRD022
Drillhole From To Intersection Est. Cu Sn W03 SnEq
Thickness True
Thickness
(m) (m) (m) (m) (%) (%) (%) (%)
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
CRD021 312.88 314.18 1.30 1.08 3.94 0.10 3.29 6.38
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
CRD021 533.32 535.56 2.24 1.75 0.02 0.01 6.24 8.94
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
CRD021 644.63 658.84 14.21 8.57 0.09 0.01 0.76 1.13
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
including 644.63 646.22 1.59 0.96 0.02 0.01 3.53 5.06
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
including 647.04 649.13 2.09 1.26 0.26 0.01 1.70 2.54
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
including 657.82 658.84 1.02 0.62 0.39 0.01 1.34 2.07
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
CRD021 670.02 677.67 7.65 4.98 0.06 0.01 1.01 1.48
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
including 670.02 671.11 1.09 0.71 0.22 0.01 3.32 4.84
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
including 673.60 674.60 0.99 0.64 0.07 0.01 2.33 3.37
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
including 676.61 677.67 1.06 0.69 0.02 0.01 1.40 2.01
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
CRD022 405.00 414.75 9.75 6.05 0.43 0.07 0.54 1.01
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
including 405.00 406.00 1.00 0.62 1.11 0.25 0.55 1.49
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
including 409.50 411.00 1.50 0.93 1.20 0.01 2.06 3.42
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
CRD022 420.25 434.35 14.10 8.74 0.74 0.17 0.68 1.44
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
including 423.25 424.25 1.00 0.62 2.38 2.12 2.19 6.21
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
including 432.35 434.35 2.00 1.24 1.19 0.03 2.83 4.55
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
CRD022 483.36 494.24 10.88 7.41 1.18 0.05 0.28 0.92
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
including 490.04 494.24 4.20 2.86 2.30 0.09 0.61 1.89
---------- ------ ------ ------------ ---------- -------- ----- ----- -----
Minimum criteria for selection of significant results: minimum
grade x width of 4.0m% SnEq, for example 5m @ 0.8% SnEq
For further information, please contact:
+61 (0) 414 727
Strategic Minerals plc 965
John Peters
Managing Director
www.strategicminerals.net
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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 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. Phase 1 of the 2018 drill
programme is underway and augurs well for additional drilling to be
undertaken.
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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