Cornish Metals Provides South Crofty Project Update
08 November 2022 - 06:00PM
Cornish Metals Inc. (
TSX-V/AIM:
CUSN) (
“Cornish Metals” or the
“Company”) is a dual-listed company focused on
advancing the past producing South Crofty high-grade, underground
tin project through a parallel mine dewatering programme, delivery
of a Feasibility Study and exploring its additional mineral rights,
all located in Cornwall, South West England.
Following the £40.5 million financing completed
in May 2022, the Company is pleased to provide the following
operations update on the South Crofty tin project. Photographs of
some of the activities underway can be viewed here.
Richard Williams, CEO of Cornish Metals
Inc, commented: “It is wonderful to see the level of
activity underway at South Crofty, as we progress through the
construction of the Water Treatment Plant, and undertake a
metallurgical sample drill programme. We are now in an exciting
period for the Company and our stakeholders. It is inspiring to see
the pride and dedication that our team displays, knowing that they
are contributing to the success of a project that means a lot to
the local community and a restart of the Cornish tin industry.”
Water Treatment Plant Construction
(WTP)
- The WTP
construction is on track for planned commissioning in June
2023.
- Detailed
design of the WTP is now 75% complete.
- The
current cost estimate for the WTP is between £6.5 to £7.0
million.
- The
foundation slab for the WTP has been designed, the shuttering and
steel reinforcement complete and concrete pouring has
commenced.
- The
treated water discharge duct from the WTP to Middle Engine Shaft is
complete.
- All key
equipment suppliers have been engaged, contracts awarded and
delivery dates assigned.
- Six large
steel clarifier tanks are being fabricated locally with delivery
and installation expected to commence in December 2022.
- Ongoing
water treatment studies have further optimised the treatment
process, resulting in a reduction in reagent consumption, an
improvement to metal and suspended solids recovery, and an expected
reduction in operating costs.
Mine Dewatering
- The two
submersible pumps purchased in 2018 have been checked and tested,
both of which are in good working order.
- Pump
installation into New Cooks Kitchen (NCK) shaft is planned to
commence this month, with both pumps expected to be installed to
approximately 370 metres depth below surface by the end of February
2023.
- Sections
of the NCK shaft headframe have been removed to prepare for pump
installation into the shaft.
- Pump and
pipe handling infrastructure has been installed and tested.
- All steel
pipes required for pumping have been delivered to site and ready
for installation.
- A new
single drum winder has been ordered, for delivery in Q3 2023, to
enable the NCK shaft re-accessing.
Metallurgical Drilling
- Three
diamond drill rigs are currently in use at North Pool Zone
(drilling from surface into the eastern section of the South Crofty
Mineral Resource), No. 4 and No. 8 Lodes (drilling from surface
into the central section), and Roskear / Dolcoath areas (drilling
from underground in the western decline into the western
section).
- Drilling
to the North Pool Zone is nearing completion of the directional
drilling phase, and sample collection for metallurgical testwork is
expected this month.
- Multiple
wedged drillholes have successfully drilled into No. 4 and No. 8
Lodes, with intersects into No. 8 Lode being wider than
anticipated, meaning less drilling will be required for sample
collection from this mineralised structure. Visually, drillholes
into both structures display good cassiterite (tin) mineralisation.
At current rates, completion of the drilling into No. 4 and No. 8
Lodes is expected before year end.
- The
underground drill rig targeting the Roskear section of the Mineral
Resource has completed the directional phase of drilling and
samples are currently being collected for the metallurgical
studies. Encouraging visible tin mineralisation has been
encountered, in line with expectations for this area of the South
Crofty Mineral Resource.
Feasibility Study (FS)
- Initial
work on the FS is underway, including hydrogeology, geotechnical
studies, ventilation, shaft refurbishment, and initial groundwork
investigations for the process plant foundations.
- A
metallurgical testwork programme has been developed, including ore
sorting, process design confirmation and paste backfill.
Health and Safety
- Zero lost
time incidents to date.
- A new
Health and Safety Officer has been employed.
- A new
underground refuge chamber has been constructed and
commissioned.
- New
self-contained Self-Rescuers have been purchased and
commissioned.
- The Company is undertaking comprehensive internal and external
competency training programmes with all new and existing
staff.
- Two new
mine rescue teams have been recruited, with training starting this
month.
- New
ventilation ducting has been installed in the western decline in
support of the underground drill progamme.
- WiFi
connections have been installed underground to provide improved
communications with surface.
Community Engagement
- The most
recent Community Meeting was held on 8 September, 2022 at
Heartlands World Heritage Mining Site.
- The local
community continues to be very supportive of plans to progress
South Crofty towards production. The full video of the
meeting can be accessed here.
- The
Company continues to provide ongoing support and funding to local
charities, sports teams and also to minerals industry related
education by providing transport and entrance fees for local
primary school trips to the Geevor Tin Mine museum.
Workforce
- The
Company has expanded its staff levels considerably since closing
the May financing, and now has over thirty full-time employees on
site, as well as numerous contractors.
- Senior
staff positions, including Project Manager, Senior Project
Engineer, and Feasibility Study Manager, have been filled.
Local and National Content
- The
Company is extremely pleased to find that many services and skills
required for the current work at South Crofty are available within
Cornwall and UK.
- A list of
local and national suppliers to the South Crofty project can be
found here.
ABOUT CORNISH METALS
The South Crofty project covers the former
producing South Crofty tin mine located beneath the towns of Pool
and Camborne, Cornwall. South Crofty mine closed in 1998 following
over 400 years of continuous production. Since acquiring the
project in 2016, Cornish Metals has completed and published maiden
NI 43-101 Mineral Resources for South Crofty using the vast archive
of historical production data and more recent drilling completed
between 2007 and 2013. Additionally, Cornish Metals has undertaken
extensive pilot-scale water treatment trials and successfully
applied for and received the necessary environmental permits to
abstract, treat and discharge mine water in order to dewater the
mine. Planning permissions for the operation of the mine and
re-development of the surface facilities have been secured and
construction of the water treatment plant foundations commenced.
The dewatering pumps, variable speed drives and new high-voltage
power supply have been delivered to site.
An updated Mineral Resource was completed in
June 2021 as summarised below:
South Crofty Summary (JORC 2012) Mineral Resource
Estimate |
Area |
Classification |
Mass (‘000 tonnes) |
Grade |
Contained Tin / Tin Equivalent (‘000 tonnes) |
Increase in contained Tin / Tin equivalent from 2016
MRE |
Lower Mine |
Indicated |
2,084 |
1.59% Sn |
33 |
10.2% |
Inferred |
1,937 |
1.67% Sn |
32 |
129.8% |
|
Upper Mine |
Indicated |
277 |
1.01% SnEq |
3 |
9.5% |
Inferred |
493 |
0.93% SnEq |
5 |
8.0% |
The Mineral Resource Estimate for South Crofty (see news release
dated June 9, 2021), is available in a report titled the “South
Crofty Tin Project Mineral Resource Update”, dated June 7, 2021,
authored by Mr. N. Szebor, CGeol (London), EuroGeol, FGS, of AMC
Consultants (UK) Ltd, can be accessed on the Company’s SEDAR
page.
The technical information in this news release
has been compiled by Mr. Owen Mihalop who has reviewed and takes
responsibility for the data and geological interpretation. Mr. Owen
Mihalop (MCSM, BSc (Hons), MSc, FGS, MIMMM, CEng) is Chief
Operating Officer for Cornish Metals Inc. and has sufficient
experience 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 under the
JORC Code (2012) and as a Qualified Person under NI 43-101. Mr.
Mihalop consents to the inclusion in this announcement of the
matters based on his information in the form and context in which
it appears.
Market Abuse Regulation
(MAR) Disclosure
The information contained within this
announcement is deemed by the Company to constitute inside
information pursuant to Article 7 of EU Regulation 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.
For additional information please contact:
In North America:
Irene Dorsman at (604) 200 6664 or by e-mail at
irene@cornishmetals.com
SP Angel Corporate Finance LLP (Nominated Adviser & Joint
Broker) |
Tel: |
+44 203 470 0470 |
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Richard Morrison |
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Charlie Bouverat |
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Grant Barker |
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Hannam & Partners(Joint
Broker) |
Tel: |
+44 207 907 8500 |
|
Matthew Hasson |
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Andrew Chubb |
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Ernest Bell |
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BlytheRay(Financial PR/IR-London) |
Tel: |
+44 207 138 3204 |
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Tim Blythe |
tim.blythe@blytheray.com |
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Megan Ray |
megan.ray@blytheray.com |
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ON BEHALF OF THE BOARD OF
DIRECTORS
“Richard D. Williams”Richard D. Williams
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Caution regarding forward looking
statements
This news release contains "forward-looking
statements". Forward-looking statements, while based on
management's best estimates and assumptions at the time such
statements are made, are subject to risks and uncertainties that
may cause actual results to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to: risks related to receipt of regulatory
approvals, risks related to general economic and market conditions;
risks related to the COVID-19 global pandemic and any variants of
COVID-19 which may arise; risks related to the availability of
financing; the timing and content of upcoming work programs
including completion and commissioning of the water treatment
plant; actual results of proposed exploration activities; possible
variations in Mineral Resources or grade; results of the
Feasibility Study, failure of plant, equipment or processes to
operate as anticipated; accidents, labour disputes, title disputes,
claims and limitations on insurance coverage and other risks of the
mining industry; changes in national and local government
regulation of mining operations, tax rules and regulations.
Although Cornish Metals has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Cornish Metals undertakes
no obligation or responsibility to update forward-looking
statements, except as required by law.
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