JORC compliant iron ore resource and AUD 1.8m loan
21 September 2011
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
1.57 million Tonne JORC compliant iron ore resource at Cobre Resource, New Mexico
And AUD 1.8 million loan
Highlights
· Cobre magnetite iron ore project, New Mexico
· JORC compliant total resource of an estimated 1.57 million metric tonnes of magnetite ore, at an average grade of 61.7 % Fe comprising an estimated:-
o Measured resource of 1.38 million tonnes
o Inferred resource of 0.19 million tonnes
· Loan agreements to meet payment of the 2nd milestone on the rail rehabilitation
· Production and transportation contractors tender and awards process underway
· First sale of material sold to internal USA customer from existing processed stockpile
· Agreement in principle for the outright purchase of Western Australian tenements
Strategic Minerals (AIM:SML), the iron ore developer and producer, today announces the results of an independent JORC assessment on its Cobre Magnetite Tailings Resource ("Cobre") in New Mexico. The asset was acquired via the acquisition of 100% of the issued share capital of Ebony Iron Pty Ltd announced on 5 September 2011.
The JORC resource assessment at Cobre was based on a blockmodelled resource estimation based on the 2004 and 2011 drilling campaigns, historic basement contours, historic dam wall construction plans and a 2011 topographic survey has been completed in order to facilitate production from the resource.
The table below shows the total estimated Mineral Resource classified as Inferred and Measured Resource in accordance with the 2004 JORC Code.
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US Short tons ('000,000) |
Metric Tonne Equivalent ('000,000) |
Fe% |
|
Materials >62% Fe |
Measured Resource |
0.77 |
0.70 |
64.3 |
|
|
Inferred Resource |
0.11 |
0.10 |
63.2 |
|
|
Grand Total |
0.88 |
0.80 |
64.2 |
|
|
|
|
|
|
|
Materials >55 and <62% Fe |
Measured Resource |
0.75 |
0.68 |
59 |
|
|
Inferred Resource |
0.1 |
0.09 |
60.1 |
|
|
Grand Total |
0.85 |
0.77 |
59.1 |
|
|
|
|
|
|
|
All materials >55% Fe |
Measured Resource |
1.52 |
1.38 |
61.7 |
|
|
Inferred Resource |
0.21 |
0.19 |
61.7 |
|
|
Grand Total |
1.73 |
1.57 |
61.7 |
Note: 1 Metric Tonne is 0.91 US Short Ton equivalent
The assessment has concluded that the Cobre Magnetite Tailings Resource is now reasonably well understood with the majority of the resource drill defined, lending confidence to the resource estimation and allowing the classification of the majority of the resource as a Measured Resource.
Operationally the Company completed its first sale of processed stockpile material to an internal United States customer, with transport vehicles loaded at site yesterday. A contracting tender process is currently underway to engage firms to excavate and transport magnetite iron ore for international shipment.
The Company can confirm that it has an agreement in principle with Quadrio Resources to procure the tenements in WA which improves the Company's prior position which was for the purchase of the iron ore rights for exploration only on the tenements. This agreement is subject to final contract negotiations, that are underway.
Steven Sanders, Group Chairman, commented; "We are very excited by the progress the Company is making towards production at our Cobre operations and in improving our position on key exploration targets".
Loan Agreement for US Rail Spur Rehabilitation/Working capital
In addition to the above, the Company announces that is has entered into loan agreements with Damon Capital Funds Pty Ltd (loan amount: AUD 1.6 million) and with another private investor (loan amount: AUD 200,000) (the "Loans"). The lenders are not considered to be related parties under the AIM Rules. The Loans attract interest at the rate of 10 per cent. per annum and are repayable on or before 31 December 2011.
The funds are to be used to make the second payment for the South Western Rail Road ("SWRR") rehabilitation project. The payment for the SWRR is approx. USD $1.65M, with the balance providing working capital for the Ebony Iron subsidiary in the short term. This major payment enables the SWRR to procure the materials (ballast, ties, track, etc.) to commence the rehabilitation works and commences the work necessary to remove the impediment in joining the main rail line.
Competent Person and JORC Code
This report was prepared in accordance with the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' ("JORC Code") by Tim Callaghan, who is a Member of The Australian Institute of Mining and Metallurgy ("AusIMM"), has a minimum of five years experience in the estimation and assessment and evaluation of Mineral Resources of this style and is the competent Person as defined in the JORC Code. This report accurately summarises and fairly reports his estimations and he has consented to the resource report in the form and context it appears.
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Company |
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Strategic Minerals plc |
+61 755 324 448 |
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Matthew Bonthrone |
+44 (0) 7730 402 783 |
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Nominated Adviser/Broker |
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Allenby Capital Limited |
+44 (0) 20 3328 5656 |
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Brian Stockbridge/James Reeve |
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Joint-Broker |
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Daniel Stewart & Company Plc |
+44 (0) 20 7776 6550 |
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Sean Lunn/Oliver Rigby
Financial Public Relations |
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Threadneedle Communications |
+44 (0) 20 7653 9850 |
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Laurence Read/Beth Harris |
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Retail Investor Relations |
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GTH Communications Limited |
+44 (0) 20 3103 3903 |
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Toby Hall/Christian Pickel |
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About Strategic Minerals plc
Strategic Minerals is an Australian based company which was incorporated in the UK on 16 November 2010, with exploration and an early production asset for iron ore, operating in Australia and the USA.
The processed stockpile located at the former Cobre mine in New Mexico provides a near term production asset for magnetite. The stockpile has been assessed to JORC standards and is estimated to contain over 1.5 million metric tonnes of magnetite at an average grade of 61.7% Fe grade of which an estimated 800,000 million metric tonnes at over 64% Fe grade.
The Company has exploration targets in Australia that include the Iron Glen Tenement located approximately 40 kilometres southwest of Townsville, Queensland, and agreements in principle for the purchase of tenements in the Northern Territory and Western Australia. The Company is currently finalising contract arrangements for the purchase of these tenements.
For more information about Strategic Minerals, please go to http://strategicminerals.co.uk.
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You can also follow the Company on Twitter @StrategicMinrls as well as Facebook and LinkedIn. |
This information is provided by RNS
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