TIDMSML
RNS Number : 1101Z
Strategic Minerals PLC
29 August 2018
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.
29 August 2018
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Leigh Creek Copper Mine - Government Approvals See Project Well
Underway
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing
mineral company actively developing projects prospective for
battery materials, is pleased to provide an update of the
activities at Leigh Creek Copper Mine ("LCCM") in South Australia.
These activities are focused on restarting copper production around
mid-2019 from the Mountain of Light processing operations.
Key Highlights
-- Approval received from South Australian Government following
two submissions in relation to a Program for Environment Protection
and Rehabilitation ("PEPR"), covering;
o Mountain of Light (processing facility located adjacent to
Paltridge North) PEPR, providing for the recommencement of copper
production from the existing heap leach pads and associated
processing facility; and
o Lynda PEPR, providing for the completion of the current
drilling programme.
-- Diamond drilling, to collect samples for metallurgical test
work, commenced at both the Paltridge North and Lynda deposits.
-- Positive conclusion that the ore is highly leachable using
standard leaching technology, following completion of desktop study
of previous metallurgical test work.
-- Creation of technical framework, including safety
requirements, to facilitate the recommencement of operations at
LCCM, expected mid-2019.
-- Several internationally recognised experts in heap leaching
and copper recovery have been retained to provide their expertise
to find the right "recipe" for efficient production.
Managing Director of Strategic Minerals, Mr John Peters,
commented:
"LCCM is entering an exciting phase as we begin to formulate the
optimal processing flowsheet for the project. This will be derived
from the current drilling programme and subsequent metallurgical
test work. I have been directly reviewing operations and I am
delighted with the progress the highly experienced LCCM team have
achieved to date. This has reinforced my confidence that we can,
during 2019, deliver a project that will provide a second income
stream for SML.
"The drilling we have commenced on the Paltridge North Deposit
is the first drilling within the Mountain of Light Mining Lease for
nearly 40 years and will provide SML with a key set of supporting
data. This data collection reflects the diligence of SML in how we
are undertaking this project. It will be an essential point of
differentiation from previous operations at the Leigh Creek site
and will be critical in decision making to determine the optimal
processing route to be employed in the recommencement of
operations."
Metallurgical Sample Drilling
An 18 hole (for approximately 785m) diamond drilling programme
commenced during the first week of August. This drill programme is
designed to collect large sized (PQ) diamond core samples from the
copper oxide ore of the Paltridge North and Lynda deposits. These
holes will be sampling mineralisation from the surface to a depth
of approximately 50m. The drilling is planned to complete in the
first week of September. Geological assay results will be released
to the market when they become available.
The drilling programme will provide core samples for
metallurgical test work to confirm the performance of the ores in
various copper extraction processes. Diamond drill core is
essential for performing metallurgical test work on the ore types
in the ore bodies. A series of metallurgical tests have been
designed to evaluate the properties of the ore. The objective of
the metallurgical test programme is to establish the copper
recovery for the ores under simulated operating conditions. The
data from the testing programme will also be used to assist in the
design and scale up for the proposed copper recovery operations.
The results of the test programme are expected to be available in
early 2019.
The extensive desktop review of historical LCCM data by SML, not
previously undertaken by prior owners, covered over ten years of
test work and operations and provided valuable insight. This data
has been used to tailor the design of the metallurgical test work
programme.
A number of internationally renowned experts in the area of heap
leaching and copper recovery have been retained by the Company to
provide their expertise in acquiring and interpreting the test
results.
It is SML's intention that the future operations at LCCM will be
well informed and designed based on high quality results from the
diamond drilling programme, desktop review and metallurgical test
work programme, which the Company believes will differentiate it
from previous operators of the mine.
Mountain of Light
The South Australian Department of Mines and Energy ('the
department') approved the Mountain of Light Program for Environment
Protection and Rehabilitation on 20 July 2018. This provides LCCM
with approval for recommencement of processing from the existing
heap leach pads and restarting the Mountain of Light processing
plant. The successful approval is the result of extensive
discussions with the department and reflects the excellent
relationship the previous owners and the current management have
with the department.
It is SML's intention to refurbish the existing processing plant
at LCCM. This work is planned to commence before the end of
2018.
Desktop Review
An extensive desktop review of previous operations and
metallurgical test work has been completed by Arthur Hunt, the
metallurgist focused on this project, who has over 30 years'
experience working in the mining and processing industries. This
review has concluded that the copper oxide ores that form the LCCM
project, which vary between deposits, are all highly leachable with
heap leaching likely to be the most attractive extraction method
for economic operations. Additionally, the desktop review has
identified key points of differentiation to previous operators of
the project, providing SML confidence that a successful operation
can be developed at LCCM.
Preparation of Operations Technical Framework
Since acquiring LCCM, SML has invested significant resources in
preparing the operations for the commencement of copper production
in 2019. This has initially focused on Occupational Health and
Safety policies and procedures for both the Mountain of Light and
Lyndhurst projects. Additionally, extensive safety improvements for
the existing sites have been completed with additional signage and
barricading of historic shafts.
For further information, please contact:
+61 (0) 414 727
Strategic Minerals plc 965
John Peters
Managing Director
www.strategicminerals.net
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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, 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. Phase 1 of
the 2018 drill programme is underway.
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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