Strategic Minerals PLC Mt Weld & Hanns Camp Projects - Exploration Update (7762R)

TIDMSML

RNS Number : 7762R

Strategic Minerals PLC

19 June 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.

19 June 2018

Strategic Minerals plc

("Strategic Minerals", "SML" or the "Company")

Mt Weld and Hanns Camp Projects - Exploration Update

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a diversified mineral production and development company, is pleased to announce an update on the gold, nickel and Rare Earth Element ("REE") exploration at Central Australian Rare Earths' ("CARE") Mt Weld tenements, and the Hanns Camp JV Project in Western Australia, south-east of Laverton.

Key Highlights

-- A 65 hole 3,863m aircore drilling programme has been completed at the Hanns Camp and Mt Weld Projects during the quarter.

-- 25 holes totalling 1,290m were drilled at the Hanns Camp South Targets. Cumulate facies ultramafic lithologies were recognised in one area potentially identifying another komatiite lava channel-facies position prospective for nickel sulphide mineralisation.

-- 40 holes totalling 2,573m were drilled testing a series of gold, nickel and REE targets in the Mt Weld group of tenements.

-- Partial gold assays have been received. Preliminary results to date have highlighted some zones of broad low-level gold anomalism within the weathered profile. These will be fully assessed to understand their significance upon receipt of all final assays.

-- Ultramafic lithologies were intersected over a number of areas within the Mt Weld Project area. Dr Martin Gole will be engaged to assess their significance and prospectivity for potential nickel sulphide mineralisation.

Chairman of Strategic Minerals, Mr Alan Broome AM, commented:

"It is pleasing to see positive preliminary results from the recently completed aircore drilling programme. The CARE geological team has identified a number targets from this work, considered prospective for gold and nickel mineralisation within both the Hanns Camp and Mt Weld group of tenements from this early stage exploration."

"In light of these initial results, the Board feels justified in continuing the exploration effort at these projects over the course of 2018 and expects to be able to fully fund these activities internally."

CARE Tenements

In 2016, the Company funded a drilling programme at the highly prospective Hanns Camp located within CARE's Laverton Project. In doing so, it acquired 50% of the ownership of CARE from Rarus Limited. Subsequently, in May 2017, the Company acquired the balance of the ownership of CARE, which is now wholly owned by the Company.

CARE holds tenements in Western Australia and has access to mining rights for cobalt, nickel, rare earth elements and gold in these tenements.

The CARE tenement package is located in the 'Eastern Yilgarn Craton Province' in Western Australia, that is notable for hosting a range of significant mineral deposits including the high-grade Mt Weld REE operation, the historic Mount Windarra and South Windarra nickel sulphide deposits, and the multi-million ounce Sunrise Dam, Granny Smith and Wallaby gold deposits.

The Laverton Project is located in the 'Eastern Yilgarn Craton Nickel Sulphide Province' in Western Australia that is most notable for hosting the Mount Windarra and South Windarra nickel sulphide deposits located 12km west of the Laverton Project which together produced 8.1 million metric tonnes (Mt) at 1.51% nickel (Ni) between 1974 and 1992. Other more recent discoveries located distally north and south along strike of the Laverton Project include:

-- Duketon Mining's Rosie Deposit that has a mineral resource estimate of 1.74Mt at 1.7% Ni including a best intercept of 5.2 metres at 9.13% Ni, 1.09% copper (Cu) and 2.22grams/ tonne platinum (Pt) from 599.71 metres down hole

   --     Rox Resources' Fisher East Project (mineral resource 3.6Mt at 2.0% Ni) 

-- Impact Minerals' Mulga Tank Project which returned a best intercept of 0.25 metres at 3.8% Ni and 0.7% Cu from 212.6 metres down hole.

Hanns Camp Nickel Sulphide Exploration

As previously announced, SML has engaged Dr Martin Gole, an internationally recognised expert in ultramafic hosted nickel sulphides to review the exploration potential of the Hanns Camp Project. This initial review was completed in January 2018.

The review identified additional targets within the Hanns Camp Project that was considered to potentially host komatiite lava channel-facies rocks. These targets had nil to only minimal testing by historic exploration. It was planned to test the highest priority target, a magnetic feature under alluvial cover located approximately 7km to the south of Hanns Camp, with a first pass aircore drilling programme.

Subsequently 25 aircore holes totalling 1,290m were drilled at the Hanns Camp South Targets. A 700m x 200m zone of cumulate facies ultramafic lithologies were recognised from the drilling, potentially identifying another komatiite lava channel-facies position prospective for nickel sulphide mineralisation. Martin Gole will again be engaged to assess their significance and prospectivity for potential nickel sulphide mineralisation.

It is anticipated that if the target area is validated by Dr Gole then further electromagnetic geophysical surveys will be completed to identify conductors for drill testing.

Mt Weld Project Exploration

The Mt Weld tenements are positioned immediately north and east of the Mt Weld REE operation, and southwest of the historic Burtville and Mikado gold mining centres.

A review and technical assessment of all the CARE tenements by the geological team identified a number of early stage targets considered to have potential for gold and REE mineralisation within the Mt Weld Project.

A series of gold, nickel and REE targets were generated from geological and geophysical interpretation and assessment of historic exploration data. Drilling of the REE targets were planned to test the potential for carbonatite dykes peripheral to the Mt Weld carbonatite intrusion; drilling was planned to test the style, extent and grade of mineralisation of the gold targets; and to test the potential of interpreted ultramafic rock positions for nickel sulphide mineralisation.

A total of 40 holes totalling 2,573m were drilled testing the gold, nickel and REE targets in the Mt Weld group of tenements.

No carbonatite lithologies were intersected or significant REE assays received and no further work is planned in these target areas at this stage.

Partial gold assays have been received. Preliminary results to date have highlighted some zones of broad low-level gold anomalism within the weathered profile. These will be fully assessed to understand their significance upon receipt of all final assays.

Cumulate and spinifex textured ultramafic lithologies were also intersected over a number of areas within the Mt Weld Project area. Martin Gole will again be engaged to assess their significance and prospectivity for potential nickel sulphide mineralisation.

Competent Persons Statement

The exploration results in this announcement are based on information compiled by Mr. Graeme Purcell, who is a Member of the Australasian Institute of Geoscientists. Mr Purcell is the Principal of Petrichor Geological and is a consultant to the Company. He has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity 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 and a qualified person as defined in the AIM Note for Mining and Oil & Gas Companies dated June 2009. Mr Purcell has over 20 years' Australia and international experience in exploration for precious and base metals.

 
 
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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.

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