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Mining News Update

Strategic Minerals To Acquire Balance of Redmoor

Strategic Minerals plc, a producing mineral company actively developing projects prospective for battery materials, is pleased to announce that it has entered into arrangements with New Age Exploration Limited (“NAE”) to acquire its entire 50% shareholding in Cornwall Resources Limited (“CRL”), the joint venture vehicle developing the Redmoor Tin/Tungsten project in Cornwall (“Redmoor”), for a total capped purchase price of £2.66 million.

The Acquisition is subject to approval by NAE shareholders at a general meeting and upon completion of the Acquisition, CRL will be 100% owned by SML. The purchase price has been structured to reflect expected future SML cash flows and a significant component of the purchase price will be determined by future production revenues.

Highlights

  • SML acquires full control of Redmoor, subject to ratification of NAE shareholders at a general meeting.
  • Purchase price for 50% of CRL set at a maximum of £2.66m payable in three stages as follows:

i.£1.06m in cash within 30 days of approval by NAE shareholders

ii.£0.54mSML promissory note payable 180 days after settlement

iii.A royalty stream of 1.5% of Net Smelter Revenue from Redmoor production capped at £1.06m

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

The recent resource upgrade has highlighted the potential world class nature of the Redmoor Tin/Tungsten project and has given the Board confidence to consolidate control. To date, SML has progressed Redmoor in conjunction with its joint venture partner, NAE, and is delighted that this opportunity has arisen to acquire total control of the project. Whilst the Acquisition is subject to approval by NAE shareholders at a general meeting, we consider this will be forthcoming within around a month, and SML will then have a further 30 days to settle the Acquisition.

SML has valued working with NAE in developing Redmoor and is pleased to have agreed a fair and mutually beneficial transaction.As a UK listed company with full ownership of a flagship UK based project, SML is proud to play a significant role in the renaissance of the Cornish mining industry.

Whilst the Company has sufficient cash resources to fund the acquisition of NAE’s interest in Redmoor, it is exploring non-dilutive funding alternatives with a select group of potential investors, at both a holding company and project level. Taking full control of Redmoor provides a significant benefit to the Company as it allows it to, solely, set the timing of project developments and, hence, the potential need for cash flow.

The Company considers this Acquisition to be an exciting opportunity and, in conjunction with our team and local stakeholders, looks forward to the next phase of development for CRL. SML believes, such development will further demonstrate the potential size and scope of the project and its position in a global context.

Shareholders are advised that Strategic Minerals’ Chairman, Alan Broome, is also the Chairman of NAE and that, after making the Board of Strategic Minerals aware of the Redmoor opportunity, he recused himself from any further dealings with the Acquisition including any voting at Board level in both the Company and NAE.

Mining News Update

Redmoor Resource Update – February 2019

Redmoor Resource Update Delivers: Inferred Mineral Resource Tripled and Grade Increased by 17%. New Age Exploration Limited (ASX:NAE) is pleased to announce the results of an updated mineral resource estimate for its Redmoor Tin-Tungsten Project in the UK, undertaken through its 50% owned joint venture vehicle, Cornwall Resources Limited (“CRL”). The updated Mineral Resource Estimate has been completed by external consultants Geologica (UK), following the completion of CRL’s successful 12-hole 2018 diamond drilling program, aimed at expanding the Redmoor resource.

Highlights

  • Updated Inferred Mineral Resource of 11.7 Mt @ 0.56% WO3, 0.16% Sn, 0.50 % Cu (1.17% Sn Eq or 0.82% WO3 Eq)3 defined within parallel high-grade zones within the Sheeted Vein System (SVS) using a break even cut-off grade of 0.45% Sn Eq1.
  • This represents a tripling of the contained metal (now 137kt Sn Eq) compared with the previous March 2018 Mineral Resource estimate (45kt Sn Eq).
  • The 1.17% Sn Eq updated Inferred Mineral Resource grade, reported at a 0.45% break-even cut-off grade, is 17% higher than the previous March 2018 Mineral Resource estimate (4.5Mt @ 1.0% Sn Eq).
  • Included within the Inferred Mineral Resource is 10.2Mt at 1.26% Sn Eq at a 0.65% Sn Eq total cost cut-off grade, reinforcing the potential to economically mine the resource.
  • Continuity of the SVS which hosts the high-grade zones now confirmed over a strike length in excess of 1,000 m and for some 650 m down dip. Ore body geometry appears likely to be amenable to underground mining.
  • Redmoor now ranks as the 2nd highest grade undeveloped tin or tungsten Mineral Resource in the world on a grade basis.
  • On a contained metal basis, the Redmoor Mineral Resource now ranks the (No. 1) largest undeveloped tin or tungsten underground mining project in the world.
  • The majority of the Redmoor deposit remains open down-dip and to the west, where an Exploration Target has been defined in addition to the resource.
  • Initial metallurgical testwork program underway at Wardell Armstrong International, Cornwall.
  • Mining study to commence shortly aimed at identifying optimal project development path.
  • CRL’s shareholders will then consider the next steps in the work program aimed at advancing the project towards PFS completion.

NAE Director Joshua Wellisch commented “The updated Redmoor Inferred Mineral Resource further establishes the project as a deposit of global significance. The 1.17% Sn Eq resource grade places the project in an outstanding competitive position relative to other new tin and tungsten projects around the world. The result of the resource update is consistent with the increased grades seen through the 2018 drill program and provides an extremely strong base on which the project will be advanced from this year”.

A detailed report can be downloaded by clicking here.

Mining News Update

Outstanding Conclusion to 2018 Redmoor Drilling Programme

The Redmoor Drilling Programme has been completed for 2018. The last rig was demobilised from the site on the 12th December. Commenting, Peter Wale, Executive Director, Strategic Minerals and Director, CRL, said:

These impressive assay results show great scope to increase both the resource tonnage and grade at Redmoor. We anticipate this update and the expected resource upgrade will add further support to the renaissance of mining in Cornwall.

“The Board is delighted by the performance of the CRL team, which has delivered a 2018 outcome which has surpassed expectations. While pleased with the manner in which the programme was run on time and within budget, the level of success in targeting mineralisation is a testament to CRL’s geological model and the team’s theories on the anticipated continuation of mineralisation in high-grade zones within the SVS both at depth and along-strike.

“It is also pleasing to note that the Board’s long-term view on the impact of supply and demand factors on tin prices has been reflected in the recent recovery in tin prices, which are now above $20,000 per tonne.

“2019 is anticipated to be a watershed year for SML – this update from Redmoor sets the tone for what the Board expects to be a year of substantial progress.”

Highlights:

  • All holes in the 2018 programme successful with most surpassing internal expectations, indicating a high likelihood of a substantially expanded Mineral Resource.
  • Weighted average tin equivalent grade for full programme 81% higher than current Mineral Resource, arising from significant intercepts of the high-grade zones within the SVS.
  • High grade intercepts of up to 26.20%, 12.45% and 10.52% tin equivalent (SnEq).
  • Includes tin (individual metal) grades of up to 5.13% Sn (CRD029; 366.61 – 367.61 m).
  • Latest holes represent some of the highest-grade intercepts to date, consistent with the last update on 27 November 2018.
  • Full 2018 drill programme successfully completed on time, under budget, and with a clean safety and environmental record.
  • Updating of Mineral Resource Estimate commenced, and results are expected in Q1 2019.
  • CRL received a £138,000 Research and Development refund from HMRC on 3 January 2019.

A detailed report can be downloaded here.

Mining News Update

Redmoor Drilling Program Ends the Year On A High

The latest exploratory results back from the Redmoor Tin-Tungsten project have produced some outstanding results with high-grade intercepts that have given the companies involved great encouragement.

Strategic Minerals plc, a producing mineral company actively developing projects prospective for battery materials, is pleased to announce continued strong assay results from the final three holes of the 2018 Phase 1 drilling programme at its Redmoor Tin-Tungsten Project, being undertaken through its 50% owned joint venture vehicle Cornwall Resources Limited (“CRL”). In addition, exceptional assays have been received for the first hole of the Phase 2 drilling programme.

Highlights:

  • Outstanding intercepts of up to 29.68%, 15.55% and 13.15% tin equivalent for hole CRD028.
  • Current results are the highest-grade intercepts yet drilled. Reinforcing the calibre of the drilling campaign and the Redmoor Project overall.
  • Further bonus hole planned – the efficiency of the CRL Team has allowed one supplementary hole (CRD032) to be added to the Phase 2 programme, funded from within the current budget. We expect this hole to further boost the potential for resource growth.
  • Assay results from four further holes in the Redmoor 2018 drilling programme continue to show more evidence of high-grade zones within the Sheeted Vein System (“SVS”).
  • Phase 2 drilling has progressed rapidly, with the planned four holes now complete (CRD028, CRD029, CRD030, and CRD031). Results for CRD028 have provided further confirmation of improving grades at depth.
  • Drilling is expected to complete during December on the final bonus hole (CRD032). Following this, and the subsequent receipt of assay results, CRL plans to carry out an update to its Inferred mineral resource in Q1 2019.
  • Full Results from Phase 2 are likely to be available early in Q1 2019.
  • In preparation for a future Pre-Feasibility Study, and to add to existing test work data, preliminary ore characterisation metallurgical test work on samples from Redmoor has commenced at consultant, Wardell Armstrong International’s laboratory in Cornwall.

Commenting, Peter Wale, Executive Director, Strategic Minerals and Director, CRL, said:

The sustained superb assay results from Redmoor which have surpassed our expectations continue to highlight exciting high-grade tin equivalent values.

We have great confidence for the potential to both increase the resource tonnage and grade at Redmoor and demonstrate the scope for it to become a notably attractive project when these results are converted into a resource estimate early in 2019.

Being able to incorporate a valuable further hole into the programme’s timeline and budget clearly demonstrates the calibre of our CRL team, who have already shown success at extending known mineralisation beyond the existing resource model.

SML remains very active across all its projects, we look forward to updating shareholders on our continued progress both at Redmoor and elsewhere.”

The video below from the Proactive Investors Stocktube YOuTube channel features Strategic Minerals plc executive director Peter Wale and Cornwall Resources’ exploration manager Brett Grist who provide a fascinating insight into the developments at the Redmoor tin / tungsten project in Cornwall.

Mining News Update

CRL Exploration Drilling Update (20th Sept)

ASX Release 20th September 2018: New Age Exploration (“NAE” or “the Company”) is excited to announce the outstanding results from the first two holes of the 2018 Phase 1 drilling program at its Redmoor Tin‐Tungsten Project, being undertaken through its 50% owned joint venture vehicle Cornwall Resources Limited (“CRL”).

Highlights

  • Multiple high‐grade zones successfully intercepted within the Sheeted Vein System (SVS) in both of the first
  • These outstanding results are the best achieved to date at Redmoor and are almost all higher grades than the current high‐grade inferred resource (1.0% SnEq), highlighting increasing grade observed with depth in CRL holes drilled to date at Redmoor.
  • The above intercepts provide strong evidence of down‐dip extensions of the high‐grade zones within the SVS (up to 180m below existing intercepts) and also potentially extend this deeper mineralisation along‐strike.
  • Drilling of 3 further holes (CRD023, CRD024 and CRD025) of the Phase 1 program is now complete and these holes are in the process of being sampled and analysed. Visually, all three holes have intersected multiple zones of tungsten and copper mineralisation of a similar appearance to that in CRD021 and CRD022.
  • Drilling of the final 2 Phase 1 holes (CRD026 and CRD027) is now underway and is expected to be completed in early October.
  • Final results from the Phase 1 program are expected to be released in November.
  • Based on the outstanding Phase 1 results to date, CRL’s shareholders, NAE and SML, are reviewing plans to undertake additional drilling to further expand the size of the high‐grade resource and at increasing the level of confidence of a portion of the resource to an Indicated Mineral Resource classification. These are prerequisites to commencing a Pre‐Feasibility Study in 2019.

NAE Managing Director Gary Fietz commented: “These results have exceeded our expectations and
continue to demonstrate the potential for a larger higher‐grade resource extending to depth and
increasing in grade with depth at Redmoor. Based on the outstanding results to date from the Phase 1
program, we expect to be providing an update within a month on the additional drilling plans being prepared by CRL which will pave the way for commencement of a PFS in 2019”.

A full report is available to download by clicking here and we encourage you to sign up to our E-Newsletter “Spotlight On Developments” via the sign up form on this page.