Exceptional Redmoor Assay Results
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:
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◦ CRD021: 14.21m @ 1.13% SnEq from 644.63m, including 1.59m @ 5.06% SnEq |
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◦ CRD021: 7.65m @ 1.48% SnEq from 670.02m, including 1.09m @ 4.84% SnEq |
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◦ CRD022: 9.75m @ 1.01% SnEq from 405.00m, including 1.50m @ 3.42% SnEq |
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◦ CRD022: 14.10m @ 1.44% SnEq from 420.25m, including 2.00m @ 4.55% SnEq |
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◦ 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 070° and dips at approximately 70° 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/cm³).
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% SnEq1. The seven-hole Phase 1 programme was funded by SML and NAE each having contributed £332,000 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 12:
CRD021
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◦ CRD021: 14.21m @ 1.13% SnEq from 644.63m, including 1.59m @ 5.06% SnEq |
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◦ 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
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◦ CRD022: 9.75m @ 1.01% SnEq from 405.00m, including 1.50m @ 3.42% SnEq |
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◦ CRD022: 14.10m @ 1.44% SnEq from 420.25m, including 2.00m @ 4.55% SnEq |
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◦ 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.
APPENDIX 1 - CRL 2018 Drilling significant intercepts for holes CRD021 - CRD022
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Drillhole |
From |
To |
Intersection Thickness |
Est. True Thickness |
Cu |
Sn |
W03 |
SnEq |
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CRD021 |
312.88 |
314.18 |
1.30 |
1.08 |
3.94 |
0.10 |
3.29 |
6.38 |
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CRD021 |
533.32 |
535.56 |
2.24 |
1.75 |
0.02 |
0.01 |
6.24 |
8.94 |
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CRD021 |
644.63 |
658.84 |
14.21 |
8.57 |
0.09 |
0.01 |
0.76 |
1.13 |
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including |
644.63 |
646.22 |
1.59 |
0.96 |
0.02 |
0.01 |
3.53 |
5.06 |
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including |
647.04 |
649.13 |
2.09 |
1.26 |
0.26 |
0.01 |
1.70 |
2.54 |
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including |
657.82 |
658.84 |
1.02 |
0.62 |
0.39 |
0.01 |
1.34 |
2.07 |
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CRD021 |
670.02 |
677.67 |
7.65 |
4.98 |
0.06 |
0.01 |
1.01 |
1.48 |
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including |
670.02 |
671.11 |
1.09 |
0.71 |
0.22 |
0.01 |
3.32 |
4.84 |
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including |
673.60 |
674.60 |
0.99 |
0.64 |
0.07 |
0.01 |
2.33 |
3.37 |
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including |
676.61 |
677.67 |
1.06 |
0.69 |
0.02 |
0.01 |
1.40 |
2.01 |
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CRD022 |
405.00 |
414.75 |
9.75 |
6.05 |
0.43 |
0.07 |
0.54 |
1.01 |
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including |
405.00 |
406.00 |
1.00 |
0.62 |
1.11 |
0.25 |
0.55 |
1.49 |
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including |
409.50 |
411.00 |
1.50 |
0.93 |
1.20 |
0.01 |
2.06 |
3.42 |
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CRD022 |
420.25 |
434.35 |
14.10 |
8.74 |
0.74 |
0.17 |
0.68 |
1.44 |
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including |
423.25 |
424.25 |
1.00 |
0.62 |
2.38 |
2.12 |
2.19 |
6.21 |
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including |
432.35 |
434.35 |
2.00 |
1.24 |
1.19 |
0.03 |
2.83 |
4.55 |
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CRD022 |
483.36 |
494.24 |
10.88 |
7.41 |
1.18 |
0.05 |
0.28 |
0.92 |
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including |
490.04 |
494.24 |
4.20 |
2.86 |
2.30 |
0.09 |
0.61 |
1.89 |
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Minimum criteria for selection of significant results: minimum grade x width of 4.0m% SnEq, for example 5m @ 0.8% SnEq
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For further information, please contact: |
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Strategic Minerals plc |
+61 (0) 414 727 965 |
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John Peters |
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Managing Director |
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Follow Strategic Minerals on: |
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Vox Markets: |
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Twitter: |
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LinkedIn: |
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Facebook: |
https://www.facebook.com/search/top/?q=strategic%20minerals%20plc |
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SP Angel Corporate Finance LLP |
+44 (0)20 3470 0470 |
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Nominated Adviser and Broker |
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Ewan Leggat |
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Laura Harrison |
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Yellow Jersey PR |
+44 (0)20 3735 8825 |
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Financial PR |
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Charles Goodwin |
+44 (0)7747 788 221 |
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Joe Burgess |
+44 (0)7769 325 254 |
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Henry Wilkinson |
+44 (0)7951 402 336 |
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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.
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