Strategic Minerals PLC Redmoor Drilling Update (7505C)

TIDMSML

RNS Number : 7505C

Strategic Minerals PLC

03 October 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.

3 October 2018

Strategic Minerals plc

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

Joint Venture Partners Commit to Redmoor Phase 2 Drilling Programme

Following Further High Grade Exploration Results

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, is pleased to announce that, following the latest successful drilling results from the 2018 Phase 1 drilling programme at its Redmoor Tin-Tungsten Project, the joint venture partners have committed a further GBP121,250 each to undertake additional Phase 2 drilling.

HIGHLIGHTS

-- Continued successful interceptions have encouraged Cornwall Resources Limited's ("CRL's") shareholders, SML and New Age Exploration Limited ("NAE"), to commit to a minimum four-hole Phase 2 drilling programme which will begin directly after completion of the Phase 1 drilling programme.

-- Assay results from two further holes from the Phase 1 drilling programme continue to show interception of high-grade zones within the Sheeted Vein System ("SVS") highlights of which are:

o CRD023: 22.49 m @ 1.00% SnEq from 667.10 m, including 2.00 m @ 4.25% SnEq

o CRD024: 6.21 m @ 1.46% SnEq from 499.42 m, including 1.00 m @ 4.11% SnEq

o CRD024: 5.62 m @ 1.83% SnEq from 567.94 m, including 1.00 m @ 7.74% SnEq

o CRD024: 6.00 m @ 2.61% SnEq from 583.95 m, including 3.00 m@ 4.45% SnEq

-- These holes include the highest-grade, length-averaged results yet and highlight the potential to both increase the resource tonnage and grade at Redmoor.

-- Phase 1 drilling has been completed with full assay results expected to be released during the December quarter.

-- The Phase 2 drilling programme is aimed at further extending the Redmoor high-grade Inferred resource in preparation for the Pre-Feasibility Study next year.

   --     Results from the Phase 2 programme are likely to be available in the first quarter of 2019. 

-- SML will fully fund its share of the costs of Phase 2 drilling (GBP121,500) from internal sources.

Commenting, John Peters, Managing Director of Strategic Minerals, said:

"The latest drilling results from Redmoor continue to deliver notably exciting high-grade tin equivalent values. This has encouraged both SML and NAE to commit and fund additional drilling to further document and support higher grade tonnage for the proposed PFS in 2019.

The quality of the technical work completed by CRL has delivered exceptional results highlighted by the high-grade intersections which will be converted into a resource estimate in early in 2019."

2018 Drilling Programme

In June 2018, CRL began its Phase 1 drilling programme, aimed at further increasing the tonnage and grade of the high-grade tin-tungsten-copper resource within the Sheeted Vein System at its Redmoor Project, which presently stands at an Inferred resource of 4.5 Mt @ 1.0% SnEq(1) . The seven-hole Phase 1 programme was funded by SML and NAE having contributed GBP332,000 each.

Assay results for the first two holes, CRD021 and CRD022 were reported on 19 September 2018. Results for the next two holes; CRD023 and CRD024, are reported herein.

Hole CRD025 of the Phase 1 drilling programme has been completed and has intersected multiple zones of tungsten and copper mineralisation (identified visually) and is in the process of being sampled and analysed.

Drilling has just been completed on the remaining Phase 1 holes (CRD026, CRD027) which again show multiple zones of tungsten and copper mineralisation (identified visually) and we now await sampling and analysis.

Final assay results from the Phase 1 drilling programme are expected to be released in the December quarter.

Based on the continued strong Phase 1 results to date, CRL's shareholders, SML and NAE, will commence a Phase 2 drilling programme immediately following completion of the Phase 1 drilling programme. The Phase 2 drilling programme consists of a minimum of four holes aimed at further extending the Redmoor high-grade Inferred resource.

CONTINUED STRONG RESULTS AND HIGH GRADES

CRD023

A summary of the significant intercepts in CRD023 is provided below with details shown in Table 1(2) :

   -- CRD023:   1.05 m @ 5.76% SnEq from 650.89 m 
 
   -- CRD023: 22.49 m @ 1.00% SnEq from 667.10 m, including 2.00 m @ 4.25% SnEq 

Hole CRD023 was designed to test a deep extension of the SVS well below, and towards the western edge of the deep parts of the existing Inferred Resource. The hole was successful in intersecting mineralisation more than 210 m below that seen in nearest holes up-dip. As with both CRD019 (the deepest hole of the 2017 drilling programme) and CRD021 and CRD022 (reported 19 September 2018) this hole provides strong evidence for the presence of down-dip extensions of the mineralisation, and indicates grade increasing with depth.

CRD024

A summary of the significant intercepts in CRD024 is provided below, with details shown in Table 1(2) :

   -- CRD024: 6.21 m @ 1.46% SnEq from 499.42 m, including 1.00 m @ 4.11% SnEq 
 
   -- CRD024: 5.62 m @ 1.83% SnEq from 567.94 m, including 1.00 m @ 7.74% SnEq 
 
   -- CRD024: 6.00 m @ 2.61% SnEq from 583.95 m, including 3.00 m@ 4.45% SnEq 

Hole CRD024 was designed to test a deep extension of the SVS well below, and towards the eastern edge of, the deep parts of the existing Inferred Resource. The hole was successful in intersecting mineralisation more than 160 m from that seen in nearby previous holes, which are located up dip and along strike in both directions. As with all holes from CRD019 to CRD023 this hole provides strong evidence for the presence of down-dip extensions of the mineralisation, and shows grade increasing with depth.

Table 1 Significant Intersections

 
Drillhole    From     To    Intersection  Est. True    Cu     Sn     W03   SnEq 
                              Thickness    Thickness 
              (m)     (m)        (m)          (m)       (%)    (%)    (%)    (%) 
----------  ------  ------  ------------  ----------  -----  -----  -----  ----- 
  CRD023    650.89  651.94      1.05         0.35     0.34   0.01   3.93   5.76 
----------  ------  ------  ------------  ----------  -----  -----  -----  ----- 
 
  CRD023    667.1   689.59     22.49        14.83     0.18   0.01   0.64   1.00 
----------  ------  ------  ------------  ----------  -----  -----  -----  ----- 
including   667.10  669.10      2.00         1.32     0.41   0.01   2.86   4.25 
----------  ------  ------  ------------  ----------  -----  -----  -----  ----- 
including   674.56  680.79      6.23         4.11     0.18   0.01   0.90   1.36 
----------  ------  ------  ------------  ----------  -----  -----  -----  ----- 
including   686.59  689.59      3.00         1.98     0.17   0.01   0.77   1.18 
----------  ------  ------  ------------  ----------  -----  -----  -----  ----- 
 
  CRD024    499.42  505.63      6.21         4.77     0.41   0.02   0.89   1.46 
----------  ------  ------  ------------  ----------  -----  -----  -----  ----- 
including   501.42  502.42      1.00         0.77     0.52   0.02   2.71   4.11 
----------  ------  ------  ------------  ----------  -----  -----  -----  ----- 
including   503.92  505.63      1.71         1.31     0.04   0.01   1.21   1.75 
----------  ------  ------  ------------  ----------  -----  -----  -----  ----- 
 
  CRD024    567.94  573.56      5.62         3.3      0.08   0.01   1.25   1.83 
----------  ------  ------  ------------  ----------  -----  -----  -----  ----- 
including   567.94  568.94      1.00         0.59     0.14   0.01   5.37   7.74 
----------  ------  ------  ------------  ----------  -----  -----  -----  ----- 
 
  CRD024    583.95  589.95      6.00         4.00     0.51   0.01   1.68   2.61 
----------  ------  ------  ------------  ----------  -----  -----  -----  ----- 
including   586.95  589.95      3.00         2.00     0.83   0.02   2.86   4.45 
----------  ------  ------  ------------  ----------  -----  -----  -----  ----- 
 

PHASE 2 DRILLING

Based on the strong Phase 1 results to date, CRL's shareholders, SML and NAE, have approved a Phase 2 drilling programme which will continue directly after the Phase 1 drilling programme. The Phase 2 drilling programme consists of a minimum of four holes aimed at further extending the Redmoor high-grade Inferred resource. The drilling is equally funded by the CRL JV partners.

The results of this proposed drilling are expected to be available in the first quarter of 2019.

([1]) SML Announcement, 20 March 2018 - Redmoor 2018 Resource Update.

([2]) The thicknesses quoted below, and all other thicknesses in this report are, unless otherwise stated, apparent thicknesses. Estimated true thicknesses are shown in Table 1. For convenience, significant intercepts are also expressed in terms of a calculated tin equivalent value (SnEq). Equivalent metal calculation notes; Sn(Eq)% = Sn%*1 + WO3%*1.43 + Cu%*0.40. Commodity price assumptions: WO3 US$ 33,000/t, Sn US$ 22,000/t, Cu US$ 7,000/t. Recovery assumptions: WO3 recovery 72%, Sn recovery 68% & Cu recovery 85% and payability assumptions of 81%, 90% and 90% respectively.

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.

GLOSSARY - DEFINITIONS OF EXPLORATION RESULTS, RESOURCES & RESERVES

Extracted from the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ("JORC Code") (December 2012) (www.jorc.org)

A 'Mineral Resource' is a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.

An 'Inferred Mineral Resource' is that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.

An 'Indicated Mineral Resource' is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.

A 'Measured Mineral Resource' is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and/or grade continuity.

An 'Ore Reserve' is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified. Ore Reserves are sub-divided in order of increasing confidence into Probable Ore Reserves and Proved Ore Reserves.

FORWARD LOOKING STATEMENTS

This report contains "forward-looking information" that is based on the Company's expectations, estimates and forecasts as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company's business strategy, plans, objectives, performance, outlook, growth, cash flow, earnings per share and shareholder value, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses, property acquisitions, mine development, mine operations, drilling activity, sampling and other data, grade and recovery levels, future production, capital costs, expenditures for environmental matters, life of mine, completion dates, commodity prices and demand, and currency exchange rates. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as "outlook", "anticipate", "project", "target", "likely", "believe", "estimate", "expect", "intend", "may", "would", "could", "should", "scheduled", "will", "plan", "forecast" and similar expressions. The forward-looking information is not factual but rather represents only expectations, estimates and/or forecasts about the future and therefore need to be read bearing in mind the risks and uncertainties concerning future events generally.

 
For further information, please contact: 
 
                                            [phone] 
Strategic Minerals plc                       965 
John Peters 
Managing Director 
www.strategicminerals.net 
 
Follow Strategic Minerals on: 
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Twitter:                                   @SML_Minerals 
LinkedIn:                                  https://www.linkedin.com/company/strategic-minerals-plc 
Facebook:                                  https://www.facebook.com/search/top/?q=strategic%20minerals%20plc 
 
                                            [phone] 
SP Angel Corporate Finance LLP               0470 
Nominated Adviser and Broker 
Ewan Leggat 
Laura Harrison 
 
 

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 September 2018, the Company entered contracts for the sale of certain CARE tenements that have been identified as gold targets.

In May 2016, the Company entered into an agreement with New Age Exploration Limited ("NAE") and, in February 2017, acquired 50% of Cornwall Resources Limited ("CRL"), the joint venture vehicle which owns the Redmoor Tin/Tungsten project in Cornwall, UK. In June 2018, CRL began its 2018 Phase 1 drilling programme aimed at further increasing the tonnage and grade of the high-grade tin-tungsten-copper resource, which presently stands at an Inferred resource of 4.5Mt @ 1.0% SnEq (as reported in the announcement "Redmoor 2018 Resource Update" dated 20 March 2018). Based on the encouraging Phase 1 results to date, SML and NAE, are reviewing plans to undertake additional drilling to further expand the size of the resource and upgrade a portion of it to an indicated, as opposed to inferred, status. These are prerequisites to commencing an investment quality pre-feasibility study in 2019.

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 [e-mail] or visit www.rns.com.

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October 03, 2018 02:00 ET (06:00 GMT)