TIDMSML
RNS Number : 0937S
Strategic Minerals PLC
07 March 2019
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.
7(th) March 2019
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Leigh Creek Copper Mine Update
Heap Leach Operations to Recommence at Mountain of Light
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing
mineral company actively developing projects prospective for
battery materials, is pleased to announce that copper production is
scheduled to recommence at the Leigh Creek Copper Mine's ("LCCM")
Mountain of Light ("MoL") processing facility in April 2019,
starting with the refurbishment and the trial reactivation of the
existing processing plant and heap leach pads.
Highlights
-- Engaged experienced operator PPM Global, who has previously
worked at the MoL processing plant, to refurbish the existing MoL
processing plant and to manage the trial restart of operations. PPM
Global has mobilised and is currently on site.
-- Assay results from 250-hole shallow air core programme
confirms the presence of residual copper in the existing heap leach
pads
-- Reactivation of the existing heap leach pads fully covered under existing permits.
-- Feasibility study, for the commencement of full scale
production from the Paltridge North and Rosmann East deposits, is
well advanced with expected completion of resource estimation and
economic evaluation scheduled for late second / early third quarter
of 2019.
Commenting, John Peters, Managing Director, Strategic Minerals,
said:
"The trial re-activation of the heap leach operations and the
extraction of copper through the soon to be refurbished processing
plant provides a significant step to full scale production which is
scheduled for late 2019 / early 2020.
"While the restart of operations is expected to commence in
April, shipment of our first copper is not expected for three
months after commencement of operations. The engagement of PPM
Global, an exceptionally experienced company who has previously
operated the Mountain of Light plant, provides the Company
confidence in planned operations."
Refurbishment of the Mountain of Light Processing Plant and
Reactivation of the Heap Leach Pads
The Mountain of Light processing facility is a copper heap leach
and cementation plant that was last operated in 2012. This was
acquired by SML in March 2018 as part of the LCCM acquisition. The
MoL plant includes three historic heap leach pads, pregnant liquor
ponds, two Kennecott cones and a filter press, as well as a
complete supporting infrastructure (power, water, communications,
access) and is designed to produce a high-grade copper concentrate
(70% Cu) known as a copper cement. Copper is extracted from the
leach solution as a copper cement by reaction with scrap iron
within the Kennecott cones.
LCCM has engaged PPM Global to refurbish and recommission the
MoL processing plant and re-activate the existing copper heap leach
pads as a trial for later full-scale production. The irrigation of
the heap leach pads is planned to commence in early April 2019 and
copper cement production to be ready for sale within three months
of commencement. The trial re-activation of the heap leach pads,
including the commissioning of the processing plant, provides the
basis for production from unmined resources, including Paltridge
North and Rosmann East which are currently undergoing a resource
estimate update, metallurgical analysis and associated feasibility
studies.
Meetings with regulators have commenced and a framework has been
agreed for a collaborative process with regard to the lodgement and
approval of the planned permits for the full re-start of
operations.
PPM Global Consultants
PPM Global (PPM) are Perth based engineers that specialise in
mineral process engineering, plant design and hands-on engineering
consultation services. PPM's experience encompasses a wide range of
minerals processing plant commissioning and operations experience.
PPM has been involved with almost all technologies associated with
mineral processing, from complex hydrometallurgical process plants
like zinc /copper SX-EW to the easy Carbon in Leach (CIL) Gold
processes.
Particularly attractive for the LCCM project, PPM has experience
in running a copper cementation operation and have previously been
directly involved in the functioning of the MoL processing
plant.
Permitting
The reactivation of the MoL heap leach pads as a trial, prior to
full scale production, has been approved by the Department of
Energy and Mining with the granting of the Program for
Environmental Protection and Rehabilitation (PEPR) No.
2016/028.
Development Plans to Full Scale Project
Since the acquisition of LCCM in March 2018, SML has been
systematically de-risking the full production restart. This has
focussed on diamond drilling of the known deposits near to the MoL
processing facility, Paltridge North and Rosmann East. The results
from the drilling at Paltridge North have been previously released
(see RNS 18 February 2019). Results from the Rosmann East drilling
are scheduled to be completed in the second quarter of 2019.
Scoping studies completed by LCCM in 2018 for both deposits have
provided SML confidence in reactivating full scale production at
the MoL processing plant. A feasibility study for Paltridge North
and Rosmann East deposits commenced in the first quarter of 2019
and is expected to be completed in late second quarter/early third
quarter 2019. Key aspects of the feasibility study include;
-- Drilling and collection of metallurgical samples for testwork
and process flowsheet development, with the metallurgical testwork
currently well advanced and flowsheet is currently being
finalised
-- Resource modelling for both Paltridge North and Rosmann East
to be updated in Q2 2019 upon completion of final assays
-- Mine optimisation for both deposits
-- Capital and operating cost estimation
-- Economic assessment
Work completed to-date in advancing planned production from the
Paltridge North and Rosmann East deposits has significantly
de-risked the MoL project and has provided confidence that a
successful full restart of operations can be completed in late
2019/early 2020. The Board and Management believe this de-risking
has significantly added to the value of this project to the
Company.
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) 414 727
Strategic Minerals plc 965
John Peters
Managing Director
www.strategicminerals.net
Follow Strategic Minerals on:
Vox Markets: https://www.voxmarkets.co.uk/company/SML/
Twitter: @SML_Minerals
LinkedIn: https://www.linkedin.com/company/strategic-minerals-plc
Facebook: https://www.facebook.com/Strategic-Minerals-PLC-296612634111414/
+44 (0) 20 3470
SP Angel Corporate Finance LLP 0470
Nominated Adviser and Broker
Ewan Leggat
Laura Harrison
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. The 12-hole 2018 drilling
programme has now been completed and the resource update that
resulted was announced in February 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
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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