Leigh Creek Copper Project Work Programme Set
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.
26 April 2018
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Leigh Creek Copper Project Work Programme Set
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, is pleased to inform the market that, after careful review, it has adopted an operational strategy to recommence operations at Leigh Creek Copper Mine ("LCCM"), in South Australia, with full production expected around mid-2019.
The key goals of the work programme will be to deliver the following:
· A low-risk processing option for the Mountain of Light and Lyndhurst projects
· An extension of the existing mine plan of approximately 5 years, including the following deposits1:
o Paltridge North
o Rosmann East
o Existing heap leach pads
o Mt Coffin
o Lynda
o Lorna Doone
· Refurbishment of the Mountain of Light processing plant
· Completion of the approvals for the Mountain of Light Project
As a result of this work at LCCM, the Company expects to:
· Increase the quoted JORC resource by reflecting current metal prices and improved processing recoveries
· Convert a proportion of the mineral inventory to a JORC Reserve
· Complete an exploration plan to increase global resources
· Select the most appropriate metallurgy process to increase recoveries
· Finalise permits and licencing
· Recommission the plant
· Start production from existing heaps in mid-2019
The work programme gives the Board greater confidence of the commencement of production in 2019. The Board also reiterates its belief that the recommissioning can be internally funded from existing Company cash balances.
Commenting, John Peters, Managing Director of Strategic Minerals, said:
"The Company is fully committed to the recommissioning of LCCM and this proposed work programme sets out a clear path to achieve this. Furthermore, we are pleased to report that the Company still expects to be able to fund the works required from its own resources.
"The Board believes the commencement of production from LCCM should prove truly transformational for the Company, providing a second profitable revenue stream to complement that currently being derived from our Cobre operation.
"We are particularly pleased with the team of Jon Reynolds and Jonathon Trewartha who have devised the work programme and who will oversee its implementation."
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For further information, please contact:
Strategic Minerals plc |
+61 (0) 414 727 965 |
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John Peters |
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Managing Director |
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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 |
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Financial PR |
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Charles Goodwin |
+44 (0)7747 788 221 |
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Joe Burgess |
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Henry Wilkinson |
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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 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 was completed in February 2017 and a drilling programme completed in 2017 resulted in a significant upgrade of the resource.
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
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