TIDMSML
RNS Number : 3533Z
Strategic Minerals PLC
14 September 2022
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.
14 September 2022
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Redmoor Update
Deep Digital Cornwall Datasets General Release
Soil samples indicate significant Tin-Tungsten mineralisation
trends near surface
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable
producing mineral company, is pleased to announce that its wholly
owned subsidiary Cornwall Resources Limited ("CRL") has today
released the first data from the 'Deep Digital Cornwall' project
("DDC"). DDC is led by the University of Exeter's Camborne School
of Mines ("CSM"), in which CRL and Cornish Lithium Ltd are delivery
partners. DDC is funded by the European Regional Development Fund
("ERDF"), through HM Department for Levelling Up, Housing and
Communities ("DLUHC").
Highlights:
-- New areas of mineral prospectivity for Tin and Tungsten,
within the Company's license area to the west of Redmoor,
identified in DDC soil sampling results being released to the
public .
-- Tin, including 1% Sn (10,000ppm), or 1.06% Sn(Eq) in soil
sample DDC001275, found in mineralised trend A and includes
potentially significant results for further follow-up.
-- Likely presence of two subsurface granite upwellings
identified in Reid Geophysics' 3D model interpretation of the
granite body and accompanying reports.
-- DDC project entering the second, and final phase.
-- CRL's datasets for Phase 1 have been provided to CSM for
storage and use by SMEs, researchers and for open access.
-- Phase 1 saw a total of 1,702 soil samples collected alongside 910 gravity survey points .
-- CRL continues work on Phase 2 to maximise the grant funding
to develop high-quality datasets that will benefit CRL's
operations.
-- CRL is hosting local presentations this week, updating local
community members and landowners on the DDC data collected within
the area, and plans for Phase 2.
-- Phase 2 of the DDC data collection will see the completion of
soil sampling, targeting infill around soil and gravity anomalies
and likely new aerial and drone surveys to complement existing
datasets.
A PDF of this release, including all maps and images referenced,
can be found on the Company website at
https://www.strategicminerals.net/investors/presentations.html
Through DDC grant funding, CRL has used the Redmoor exploration
license area as a field laboratory for the collection of
geochemical and geophysical data. The results to date improve CRL's
understanding of the granite body below the license area and, when
combined with the soil sampling results, highlight significant
mineral prospectivity in the wider license area. Further DDC
fieldwork is planned to test these results, helping CRL in
identifying targets for future exploration.
Phase 1 Soil Sampling - Fieldwork and Results
Using the method trialled in the close-spaces auger sampling in
Target Tip Valley ("TTV") (reported 28 September 2021), CRL
conducted Phase 1 of the DDC soil sampling campaign. Samples were
initially planned on 400m spaced lines, orientated perpendicular to
the dominant mineralisation trends, with samples spaced every 10m.
Lines were modified to avoid infrastructure and to best fit
available land access. This survey is the highest detailed soil
sampling campaign completed within the area to date and
significantly adds to the understanding of the mineralisation
present within CRL's license area.
CRL's field team collected 1,702 Phase 1 soil samples from
August 2021 to January 2022 (see Appendix A, Figure 2: Location
Map). Samples were shipped to ALS Minerals Loughrea and were
analysed using method ICP-MS ME-MS89L, with a Boron analysis
add-on. Final sample results were received from the laboratory in
May 2022.
Soil samples were expected to contain lower overall metals
content compared to those around the Redmoor resource and TTV, due
to the presence of unmineralized geology overlying a large section
of the sampling area. However, following receipt and mapping of
laboratory results, soil anomalies containing significant metal
content above background levels were noted with noticeable trends
across sample lines indicating the potential presence of
mineralised structures (see Appendix B, Table 1 which includes
several highlights).
Following receipt of the soil sample results, a research project
was undertaken over a three-month period from June - August 2022.
This project included modelling and interpretation of the combined
results of the gravity survey and the soil sample results, and
included knowledge of geology, mineralisation styles of the area
and combined data from previous studies, to produce Minerals
Prospectivity Maps ("MPM") of the Redmoor License area (Figure
1).
Figure 1: Minerals Prospectivity Map of the Redmoor license area
covered by DDC soil samples. (A) Elevated Sn-W-Cu anomalies, (B)
Elevated SN-W anomalies and (C) Elevated SN-W-CU anomalies. A and B
represent trends consistent with the lode and SVS mineralisation at
Redmoor, and C represents higher values associated with two
modelled granite upwellings ("MGU").
The MPM map shows areas of higher and lower prospectivity for
mineralisation (red are higher / blue are lower). Increased
potential mineralisation has been noted around the modelled granite
upwellings and along two near East-West trending zones, consistent
with soil anomalies. These zones follow a similar alignment to the
lodes and sheeted vein systems ("SVS") found at and around Redmoor.
Zones A, B and C contain elevated Tin, Tungsten and Copper
anomalies in the soil samples collected.
Ground Gravity Survey - Fieldwork and Results
A ground-based gravity survey of the Redmoor area was completed
by CRL field staff over the period of August - December 2021. Reid
Geophysics Ltd supervised the collection of data and completed
Quality Assurance/Quality Control checks, and all modelling and
interpretation of the results. Following completion of the survey,
Astute Geosciences, working with Reid Geophysics, completed a 2D
reinterpretation of the geology of the survey area, reinterpreting
several faults and indicating the likely presence of two subsurface
granite upwellings. In addition to interpretation and modelling the
gravity data, Reid Geophysics recently completed a 3D model
interpretation of the granite body below Redmoor and accompanying
reports.
This new model is a significant improvement on the knowledge of
the potential size, shape, and nature of the granite body. The
modelled presence of two subsurface granite upwellings, when
combined with the DDC soil sampling results, highlights the
potential for new mineralised systems to the west of Redmoor
(Figure 2) providing a favourable locale for mineralisation similar
to those known elsewhere in Cornwall. These will be investigated
through further exploration work programs.
Figure 2: shows the location of the soil samples in relation to
the Redmoor JORC (2012) compliant Resource (11.7mt @ 1.17% Sn (Eq))
and other examples of historical mining. The newly modelled granite
upwellings between Redmoor and the soil samples suggest further
potential for mineralising systems to the west with the soil
sampling results and MPM highlighting this potential. This data
will be available as a DDC data output
The granite model and associated reports are now available via
the DDC Hub for further research and use by SMEs. This model
provides the DDC Hub with a significant 3D model, with which to
highlight the Hub's use as a geological repository for the
Southwest, an area highlighted by the UK Government's Critical
Minerals Strategy (published in July 2022) as a key location for
Critical Minerals and associated knowledge.
Following completion of Phase 1 of the research project in
September 2022, datasets and reports are now being made available
via the DDC Hub, based on the Penryn Campus at CSM. These will be
available to SMEs, researchers and for general access in line with
the DDC data policy.
CRL is hosting local presentations, this week updating local
community members and landowners on the DDC data collected within
the area, and plans for Phase 2 of the DDC project work.
Ongoing DDC Work Plan
CRL continues to progress the DDC fieldwork. Phase 2 of soil
samples began in June 2022, alongside the research project. The DDC
budget allows for a total of 2,500 soil samples to be taken and
analysed, therefore Phase 2 will consist of 798 soil samples. These
samples will target soil anomalies and trends of high minerals
prospectivity highlighted above (Figure 2). Sampling is expected to
be complete shortly, with samples shipped to ALS Minerals Loughrea
and analysed before the end of the 2022. Results from Phase 2 will
be used to update the MPM model and to target future
investigations.
CRL intends to complete drone-based surveys of a section of the
license area in Q1 and Q2 of 2023, and participate in a DDC-funded
aerial survey, covering DDC Partner areas of interest.
Planned Drilling
CRL continues preparation for a drill program, in the TTV, to
test at depth previously reported high-grade auger and trenching
results (as reported 17 November 2021). A General Permitted
Development Order application, for necessary consents, was approved
by Cornwall Council. Drilling has been delayed into 2023 due to a
shortage of available drill rigs. Drilling is expected to consist
of four drillholes, to test both the reported tin target and the
potential westward continuation of the Redmoor Sheeted Vein System
orebody.
Commenting, Peter Wale, Executive Director of Strategic Minerals
and Director of CRL, said :
"These DDC datasets provide welcome confirmation that
mineralisation likely continues to the west of Redmoor and the
Target Tip Valley (TTV). Historically, this area has been
under-explored and unmined and provides likely targets for further
future investigation and exploration.
"CRL's experience at Redmoor has indicated that grades often
increase significantly at depth, as the source granite is
approached. A new granite model, developed from the DDC gravity
survey, showing that the granite likely rises closer to surface to
the west of TTV is therefore encouraging and provides the potential
to expand on the existing resource for what the UK Government now
defines as Critical Minerals, such as Tin & Tungsten at
Redmoor.
"CRL intends to continue to maximise its DDC grant funding to
produce high-quality datasets that will increase confidence at
Redmoor and that will be available for others to research via the
DDC Hub. We believe this data is a good example of what can be
achieved, through low-cost Government initiatives, to de-risk
exploration for Critical Minerals in the UK.
"The 2023 expected drill program will utilise the data produced
in the DDC datasets to pursue exploration of depth extensions of
the TTV target and the potential for a westward continuation of the
existing Redmoor orebody."
Competent Person's Statement
The information in this announcement 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 reviewed and consented to the inclusion in the
announcement of the matters based on his information in the form
and context in which it appears.
About Deep Digital Cornwall
In 2019, CRL, along with other industry delivery partners,
joined the 'Deep Digital Cornwall' funding application, led by CSM,
for funding from the European Structural & Investment Fund of
the European Regional Development Fund. The application was made in
response to a call aiming to promote research and innovation in
Cornwall and the Isles of Scilly (Funding call: OC05R18P 0782).
The GBP4.1m Deep Digital Cornwall project, includes GBP3.3m of
grant funding. CRL is now in the second and final year of project
work. From the grant funding, CRL will, as a Delivery Partner,
receive funding of up to GBP446,063, to facilitate the use of its
Redmoor exploration licence area as a field laboratory. As part of
the funding, CRL have in place a match fund of 20% (GBP111,516).
Total DDC project expenditure at Redmoor is GBP555,579.
DDC aims to create a world-leading cluster of research-active,
highly innovative businesses in Cornwall and the Isles of Scilly,
applying digital solutions to a wide range of below ground and
related business opportunities including mining and geothermal. DDC
Project Partners will provide high quality datasets to the DDC Hub,
at the Penryn Campus of Camborne School of Mines. DDC datasets will
be available for SME, Researcher and Public Access as part of the
data sharing agreement
For further information, please contact:
+61 (0) 414 727
Strategic Minerals plc 965
John Peters
Managing Director
Website: www.strategicminerals.net
Email: info@strategicminerals.net
Follow Strategic Minerals on:
Vox Markets: https://www.voxmarkets.co.uk/company/SML/
Twitter: @SML_Minerals
LinkedIn: https://www.linkedin.com/company/strategic-minerals-plc
+44 (0) 20 3470
SP Angel Corporate Finance LLP 0470
Nominated Adviser and Broker
Matthew Johnson
Ewan Leggat
Charlie Bouverat
Notes to Editors
Strategic Minerals plc:
Strategic Minerals plc is an AIM-quoted, profitable operating
minerals company actively developing projects tailored to materials
expected to benefit from strong demand in the future. It has an
operation in the United States of America along with 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 likely to be highly demanded in the future.
In September 2011, Strategic Minerals acquired the distribution
rights to 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 aimed at supplying the
metals and minerals likely to be highly demanded in the future.
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. This was followed in 2018 with
a 12-hole 2018 drilling programme has now been completed and the
resource update that resulted was announced in February 2019. In
March 2019, the Company entered into arrangements to acquire the
balance of the Redmoor Tin/Tungsten project which was settled on 24
July 2019 by way of a vendor loan which was fully repaid on 26 June
2020.
In March 2018, the Company completed the acquisition of the
Leigh Creek Copper Mine situated in the copper rich belt of South
Australia and brought the project temporarily into production in
April 2019. In July 2021, the project was granted a conditional
approval by the South Australian Government for a Program for
Environmental Protection and Rehabilitation (PEPR) in relation to
mining of its Paltridge North deposit and processing at the
Mountain of Light installation. In late June 2022, an updated PEPR,
addressing the conditions associated with the July 2021 approval,
was approved.
The European Regional Development Fund (ERDF):
The Deep Digital Cornwall project is receiving up to
GBP3,313,761 of funding from the England European Regional
Development Fund ("ERDF") as part of the European Structural and
Investment Funds Growth Programme 2014-2020. The Department for
Levelling Up, Housing and Communities ("DHULC") is the Managing
Authority for the ERDF grant. Established by the European Union,
the European Regional Development Fund helps local areas stimulate
their economic development by investing in projects which will
support innovation, businesses, create jobs and local community
regenerations. For more information visit
https://www.gov.uk/european-growth-funding .
Appendix A - Soil sample and gravity survey station location
maps
Figure 1: Ground gravity survey station locations. Samples were
collected at 100m centres in the main area of the license, and 200m
centres on the periphery. Samples were also taken within the public
access area of Kit Hill.
Figure 2: Soil auger sample locations. Samples taken on
pre-planned lines, at 10m spacing. Purple highlighted sections have
been completed and form Phase 1 of the campaign.
Appendix B - selected soil sample laboratory results
Soil Sample Easting Northing Sn Cu W
no. % % %
DDC001275 231500.6 71376.08 1.00 0.01 0.04
--------- --------- ----- ----- -----
DDC000738 234197.7 72394.58 0.38 0.01 0.13
--------- --------- ----- ----- -----
DDC001270 231490.5 71431.39 0.27 0.01 0.02
--------- --------- ----- ----- -----
DDC001376 232740.4 69942.36 0.26 0.01 0.01
--------- --------- ----- ----- -----
DDC001374 232743.9 69922.66 0.18 0.01 0.02
--------- --------- ----- ----- -----
DDC001375 232742.1 69932.61 0.16 0.01 0.01
--------- --------- ----- ----- -----
DDC000739 234199.5 72384.78 0.16 0.01 0.06
--------- --------- ----- ----- -----
DDC001372 232746.9 69902.48 0.14 0.01 0.01
--------- --------- ----- ----- -----
DDC001271 231492.6 71421.56 0.14 0.01 0.01
--------- --------- ----- ----- -----
DDC001274 231498.6 71388.37 0.12 0.01 0.01
--------- --------- ----- ----- -----
DDC001373 232745 69915.28 0.10 0.01 0.01
--------- --------- ----- ----- -----
DDC001371 232748.9 69892.95 0.10 0.01 0.01
--------- --------- ----- ----- -----
DDC000115 234186.6 72106.3 0.08 0.01 0.02
--------- --------- ----- ----- -----
DDC000740 234201.2 72374.91 0.07 0.01 0.03
--------- --------- ----- ----- -----
DDC001370 232759.9 69884.63 0.07 0.01 0.01
--------- --------- ----- ----- -----
Table 1: Selected soil sample results. DDC001275 includes 1% Tin
within the soil sample for a 1.06% Sn(Eq).
Equivalent metal calculation notes; Sn(Eq)% = Sn%*1 + WO3%*1.43
+ Cu%*0.40. WO3(Eq)%= Sn%*0.7+WO3%+Cu%*0.28. Commodity price
assumptions: WO3 US$ 33,000/t, Sn US$ 22,000/t, Cu US$ 7,000/t.
Recovery assumptions: total WO3 recovery 72%, total Sn recovery 68%
& total Cu recovery 85% and payability assumptions of 81%, 90%
and 90% respectively.
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