Strategic Minerals to kick-start tin and copper exploration program
(SML ) said its 100%-owned subsidiary Cornwall Resources ("CRL") is to start a trenching and auger exploration program the Redmoor Tin and Tungsten project.
CRL, which holds 50% of the Redmoor Tin and Tungsten project located in Cornwall through Strategic Minerals, said the program will investigate the possible presence of extensions of mineralisation up to 1,000 m to the west of the presently established Redmoor resource.
To date, multiple prospective targets for tin and copper have already been identified as a result of a review of historic exploration data taken to the west of the Redmoor deposit.
CRL has had ‘considerable success’ through exploring the main Sheeted Vein System (SVS) resource at Redmoor. To date, peak single-assay results in tungsten and copper have highlighted the capacity of the system to host intense mineralisation in both these metals.
However, metal distribution is not uniform and the SVS shows a particular trend of increasing tin in the western parts of the resource. In light of this, CRL plans to investigate the potential exploration area along strike from, and to the west of the current deposit.
The planned area for the deposit is also known from historic exploration data to contain multiple soil geochemical targets, particularly for tin and copper. Historic drill intercepts have reported grades of 1.26% tin over 2.55m in core at a depth of only 30 m from surface.
Significant soil anomalies were also identified, highlighting values of up to 1,500 ppm tin and 630 ppm copper. The anomalies have a similar trend to known mineralisation further east.
The improved understanding of previous work has been ‘further augmented’ by the results of CRL's recent field exploration, including some of its collaborative academic research projects. The combination of these datasets has allowed CRL to identify gaps in previous operators' work, representing opportunities for potential further discovery, it told investors.
The planned program, which will utilise a combination of powered-auger sampling and trenching techniques and assess defined targets, represents a practical test of the local viability of these methods. The program is expected to lead to the definition of a series of further targets suitable for reconnaissance drilling at a later stage should it be successful.
SML outlined to investors that the main objectives of the program, which is believed to be the first exploration trenching work undertaken in this area, are to establish the westward continuity of the mineralised systems and to advance knowledge of the prospective host geology with a view to optimizing and de-risking future exploration drill targets.
Work is planned for early April 2021, Covid-19 controls permitting, and to last for around three months, leading up to the expected start of the ‘Deep Digital Cornwall’ summer project where SML will work to generate new data for the project as a delivery partner.
Peter Wale, Executive Director of SML and Director of CRL, commented that, "Accordingly, the proposed western trenching and auger exercise represents a cost-effective program as a first step in assessing the wider potential for tin and copper at Redmoor."
"From our advanced understanding of the geology of the region, we consider it likely that the western potential of Redmoor extends farther away from the granite intrusions which drove the mineralisation in the area. As such, the mineralisation is likely to be richer in those metals that are typically distributed more distally from the source, such as tin and copper.”
He highlighted to investors that, inter alia, the proposed work programme at the project is designed to increase SML’s confidence in the strike continuity of the main Redmoor system.
Shares in Strategic Minerals have increased by over 30% since the beginning of the month. The stock was trading 5.34% higher this morning at 0.59p as a result of the news. Should this initial exploration work prove successful, the program is expected to lead to the definition of a series of additional targets suitable for reconnaissance drilling at a later stage.
Reasons to Follow SML
Strategic Minerals is a minerals production and development group focused on developing projects prospective for battery materials. In September 2020, it reported a swing to profit in the six months ended 30 June 2020 after posting a pre-tax profit of $0.26m.
Multiple Projects and Minerals
It is currently undertaking four major spheres of operations; the Cobre magnetite stockpile operation, the Leigh Creek Copper Mine, the Redmoor tin/tungsten exploration project and the Central Australian Rare Earths project.
In October 2020, SML announced a positive updated scoping study undertaken by Wardell Armstong that reported improved economics for the Redmoor tungsten and tin project.
Sales Ramp Underway
Today’s ‘strong’ December quarter follows a trajectory of recent growth at the Cobre magnetite operation in New Mexico after the group reported strong sales last quarter.
"Sales at Cobre continue to show excellent annual growth providing the Company the opportunity to repay outstanding liabilities and benefit from surplus cash generated from operations,” said John Peters, Managing Director of SML said in October 2020.
He added, “With copper prices around $3lb and the recent emphasis on the strategic nature of tungsten, the Board is confident that the underlying value in its projects will be realized."
Positive Newsflow Expected
Following the announcement of the improved LCCM project economics on 9 November 2020, the Company continues discussions with a number of parties that have expressed an interest in investing in the Leigh Creek project and expects to be able to ultimately conclude an agreement once the PEPR for the Paltridge North deposit has been issued.
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