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SML - Strategic Minerals

Discussion in 'General Share Chat (SML)' started by Cacher, Dec 18, 2016.

  1. Groucho

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    John Meyer, Mining analyst and partner at SP Angel talks about SML (12m 30s onwards)
     
    Last edited: Aug 22, 2018
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    29 August 2018


    Strategic Minerals plc

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


    Leigh Creek Copper Mine - Government Approvals
    See Project Well Underway



    Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, is pleased to provide an update of the activities at Leigh Creek Copper Mine ("LCCM") in South Australia. These activities are focused on restarting copper production around mid-2019 from the Mountain of Light processing operations.


    Key Highlights

    · Approval received from South Australian Government following two submissions in relation to a Program for Environment Protection and Rehabilitation ("PEPR"), covering;

    o Mountain of Light (processing facility located adjacent to Paltridge North) PEPR, providing for the recommencement of copper production from the existing heap leach pads and associated processing facility; and

    o Lynda PEPR, providing for the completion of the current drilling programme.


    · Diamond drilling, to collect samples for metallurgical test work, commenced at both the Paltridge North and Lynda deposits.


    · Positive conclusion that the ore is highly leachable using standard leaching technology, following completion of desktop study of previous metallurgical test work.


    · Creation of technical framework, including safety requirements, to facilitate the recommencement of operations at LCCM, expected mid-2019.


    · Several internationally recognised experts in heap leaching and copper recovery have been retained to provide their expertise to find the right "recipe" for efficient production.


    Managing Director of Strategic Minerals, Mr John Peters, commented:

    "LCCM is entering an exciting phase as we begin to formulate the optimal processing flowsheet for the project. This will be derived from the current drilling programme and subsequent metallurgical test work. I, have been directly reviewing operations and
    I am delighted with the progress the highly experienced LCCM team have achieved to date. This has reinforced my confidence that we can, during 2019, deliver a project that will provide a second income stream for SML.

    "The drilling we have commenced on the Paltridge North Deposit is the first drilling within the Mountain of Light Mining Lease for nearly 40 years and will provide SML with a key set of supporting data. This data collection reflects the diligence of SML in how we are undertaking this project. It will be an essential point of differentiation from previous operations at the Leigh Creek site and will be critical in decision making to determine the optimal processing route to be employed in the recommencement of operations."


    Metallurgical Sample Drilling

    An 18 hole (for approximately 785m) diamond drilling programme commenced during the first week of August. This drill programme is designed to collect large sized (PQ) diamond core samples from the copper oxide ore of the Paltridge North and Lynda deposits. These holes will be sampling mineralisation from the surface to a depth of approximately 50m. The drilling is planned to complete in the first week of September. Geological assay results will be released to the market when they become available.

    The drilling programme will provide core samples for metallurgical test work to confirm the performance of the ores in various copper extraction processes. Diamond drill core is essential for performing metallurgical test work on the ore types in the ore bodies. A series of metallurgical tests have been designed to evaluate the properties of the ore. The objective of the metallurgical test programme is to establish the copper recovery for the ores under simulated operating conditions. The data from the testing programme will also be used to assist in the design and scale up for the proposed copper recovery operations. The results of the test programme are expected to be available in early 2019.

    The extensive desktop review of historical LCCM data by SML, not previously undertaken by prior owners, covered over ten years of test work and operations and provided valuable insight. This data has been used to tailor the design of the metallurgical test work programme.

    A number of internationally renowned experts in the area of heap leaching and copper recovery have been retained by the Company to provide their expertise in acquiring and interpreting the test results.

    It is SML's intention that the future operations at LCCM will be well informed and designed based on high quality results from the diamond drilling programme, desktop review and metallurgical test work programme, which the Company believes will differentiate it from previous operators of the mine.


    Mountain of Light

    The South Australian Department of Mines and Energy ('the department') approved the Mountain of Light Program for Environment Protection and Rehabilitation on 20 July 2018. This provides LCCM with approval for recommencement of processing from the existing heap leach pads and restarting the Mountain of Light processing plant. The successful approval is the result of extensive discussions with the department and reflects the excellent relationship the previous owners and the current management have with the department.

    It is SML's intention to refurbish the existing processing plant at LCCM. This work is planned to commence before the end of 2018.


    Desktop Review

    An extensive desktop review of previous operations and metallurgical test work has been completed by Arthur Hunt, the metallurgist focused on this project, who has over 30 years' experience working in the mining and processing industries. This review has concluded that the copper oxide ores that form the LCCM project, which vary between deposits, are all highly leachable with heap leaching likely to be the most attractive extraction method for economic operations. Additionally, the desktop review has identified key points of differentiation to previous operators of the project, providing SML confidence that a successful operation can be developed at LCCM.


    Preparation of Operations Technical Framework

    Since acquiring LCCM, SML has invested significant resources in preparing the operations for the commencement of copper production in 2019. This has initially focused on Occupational Health and Safety policies and procedures for both the Mountain of Light and Lyndhurst projects. Additionally, extensive safety improvements for the existing sites have been completed with additional signage and barricading of historic shafts.
     
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    3 September 2018

    Strategic Minerals plc

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

    CARE Gold Tenements Sale

    Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, is pleased to announce that it has signed an "in principle" agreement in relation to the divestments of certain tenements, that have been identified as gold targets, currently owned by its wholly owned subsidiary, Central Australian Rare Earths Pty Ltd ("CARE"), to ASX listed Great Southern Mining Ltd ("GSN"), subject to a one week due diligence and effective transfer of title.

    Highlights

    · The Company has agreed to arrange the sale of the following tenements to GSN:

    - E38/2829

    - E38/2442

    - E38/2587

    - E38/2856

    · The tenements in the agreement are 100% owned by CARE.

    · Total consideration for the sale is AUD 145,000 to be paid by way of AUD 100,000 in cash and issuance to CARE of 1,000,000 shares in GSN at an issue price of AUD 0.045. A non-refundable deposit of AUD 50,000 will be deposited on exchange of contracts and the cash balance and the shares will be provided on transfer of title.

    · 500,000 GSN shares will be subject to a voluntary escrow until 30 December 2018, with the balance voluntarily escrowed until 30 June 2019.

    · The sale of these tenements channels the Company's focus for CARE on nickel/cobalt and rare earth exploration.

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

    "As a result of the ongoing evaluation and rationalisation of the CARE tenements, the board has decided that the tenements identified as gold targets are not in line with the Company's strategy of pursuing battery-related metals and the sale of these assets allows Strategic Minerals to focus future exploration on nickel sulphides, cobalt and rare earth elements.

    "The Company looks forward to updating the market shortly on its plans to undertake further drilling around Hanns Camp, notably at Hanns Camp South, which is showing good signs of nickel sulphide prospectivity."
     
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    13 September 2018

    Strategic Minerals plc

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

    CARE Gold Tenements Sale Update

    Further to the announcement on 3 September 2018, Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, is pleased to announce that it has now exchanged contracts for the sale of certain tenements identified as gold targets, currently owned by its wholly owned subsidiary, Central Australian Rare Earths Pty Ltd ("CARE"), to ASX listed Great Southern Mining Ltd ("GSN").

    Highlights

    · The Company has exchanged contracts for the sale of the following tenements to GSN:

    - E38/2829

    - E38/2442

    - E38/2587

    - E38/2856

    · The Company has received a non-refundabledeposit ofAUD 50,000.

    · The balance of the purchase price (AUD 50,000 in cash and issuance to CARE of 1,000,000 shares in GSN at an issue price of AUD 0.045) will be paid on completion of the transfer of title of the tenements, expected within one month.

    · On completion, the Company will enter a voluntary escrow agreement ensuring that 500,000 GSN shares will not be sold prior to 30 December 2018 and the balance will not be sold prior to 30 June 2019.


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

    "The exchange of contracts on the gold related CARE tenements is a welcome stepping stone to the improved overall management and exploration of the tenements within CARE's portfolio.

    "Additional funding arising from this sale is likely to be applied to further drilling around Hanns Camp, notably at Hanns Camp South, which remains highlyprospective for nickel sulphide mineralisation."
     
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    19 September 2018

    Strategic Minerals plc

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

    Exceptional Assay Results Pave the Way to Redmoor 2019 PFS

    Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, is excited to announce that the results from the initial two holes from the 2018 Redmoor drilling programme yielded the Company's best drill results at the project to date. Following the positive drill results, both the Company, and its 50% joint venture partner, New Age Exploration ("NAE"), are now considering expanding the current drilling programme and will plan additional phases to enable its 50% owned joint venture vehicle, Cornwall Resources Limited ("CRL"), to be in a position to commence a project pre-feasibility study ("PFS") in 2019.

    HIGHLIGHTS

    · Increasing grade shown in these outstanding results with almost all at higher grades than the current high-grade inferred resource (1.0% SnEq).

    · Multiple high-grade zones successfully intercepted within the Sheeted Vein System ("SVS") in both of the first 2 holes of the Phase 1 programme:

    ◦ CRD021: 14.21m @ 1.13% SnEq from 644.63m, including 1.59m @ 5.06% SnEq

    ◦ CRD021: 7.65m @ 1.48% SnEq from 670.02m, including 1.09m @ 4.84% SnEq

    ◦ CRD022: 9.75m @ 1.01% SnEq from 405.00m, including 1.50m @ 3.42% SnEq

    ◦ CRD022: 14.10m @ 1.44% SnEq from 420.25m, including 2.00m @ 4.55% SnEq

    ◦ CRD022: 10.88m @ 0.92% SnEq from 483.36m, including 4.20m @ 1.89% SnEq

    · 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 programme have now been completed and these holes are in the process of being sampled and analysed. Visually, all three holes appear to have intersected multiple zones of tungsten and copper mineralisation and are of a similar appearance to that in CRD021 and CRD022.

    · Drilling of the final two Phase 1 holes (CRD026 and CRD027) has commenced and is expected to be completed in early October.

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

    · The deposit remains open at depth and along strike to the west.

    · Based on the outstanding Phase 1 results to date, CRL's shareholders, 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.



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

    "The initial results from the first two holes have exceeded our expectations and they reinforce the team's considered opinion that the resource grade increases at depth.

    "Apart from the excitement generated by the extremely positive assay results from the first two holes, the results pave the way for CRL to commence an investment quality pre-feasibility study in 2019. While the Board and the Company's shareholders have confidence in the value of its investment in CRL, it considers that delivery of a PFS is critical to the market in determining the value attributed to CRL by the Company.

    "A report on CRL's additional drilling plans is expected within a month and SML looks forward to updating the market at this time."



    Redmoor Geology Overview - Sheeted Vein System ("SVS")
    The SVS is a body in which numerous closely-spaced sub-parallel veins carry high-grade tin, tungsten and copper mineralisation. The SVS strikes at approximately 070° and dips at approximately 70° to the north. The SVS has previously been demonstrated to be continuous along a strike length of over 650m with a thickness of approximately 100m, and a variable known dip extent (250-450m). The SVS presently remains open down-dip over much of its length. Within this volume are a series of discrete high-grade zones, sub-parallel to the overall SVS envelope. It is this high-grade material that is being tested by the current drill programme, and which CRD021 and CRD022 have successfully intersected. The 2018 resource contained eight volumes in this high-grade material each ranging from 135,000t to 1,200,000t (at a density of 2.9g/cm³).

    2018 Phase 1 Drilling Programme
    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 within the SVS at its Redmoor Project, which presently stands at an Inferred resource of 4.5Mt @ 1.0% SnEq1. The seven-hole Phase 1 programme was funded by SML and NAE each having contributed £332,000 for the programme.

    Assay results for the first two holes, CRD021 and CRD022, have now been received from the laboratory (ALS Loughrea) and are reported herein.

    Drilling of 3 further holes (CRD023, CRD024 and CRD025) of the Phase 1 programme is now complete and these holes are in the process of being sampled and analysed. All three holes have intersected multiple zones of tungsten and copper mineralisation of a similar appearance to that in CRD021 and CRD022.

    The final two holes of Phase 1 are underway and drilling is expected to complete in early October 2018. Due to encouraging mineralisation, the majority of holes have been slightly extended beyond planned depths, with the total drilled depth for the Phase 1 programme now forecast to be around 4,200m.

    5A790606-C6E5-4FAA-B3A3-1FD30432A417.jpeg

    Future Work Programme
    Following the outstanding results to date from the Phase 1 drilling programme and considering the comparable strong appearance of as yet un-assayed mineralisation in more recent drill core, CRL's shareholders, SML and NAE, have recommended additional drilling, designed to continue on directly after the Phase 1 programme, aimed at further expanding the resource and migrating a portion of the resource from inferred to indicated in order to support the commencement of a PFS in 2019.

    Once the drilling proposals are assessed and, provided it is supported by both SML and NAE, the market will be updated.


    [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 Appendix 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
     
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    24 September 2018


    Strategic Minerals plc

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



    Additional Nickel Sulphide Prospects Identified at Hanns Camp



    Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, is pleased to announce the location of three additional targets that are prospective for nickel sulphides at its Hanns Camp project,Western Australia.

    The Hanns Camp project is held by the Company's wholly owned subsidiaryCentral Australian Rare Earths ("CARE").



    HIGHLIGHTS

    · Hanns Camp South, Royal North and Royal Central have been highlighted as potential Nickel Sulphide targets as a result of the completion and evaluation of results from the air core drilling programme conducted in June 2018.

    · Dr. Martin Gole, along with SML's Consultant Geologist Graeme Purcell, reviewed the data and targets in the field and confirmed the potential for lava channel embayment's in the ultramafics which have the potential for hosting nickel sulphide mineralisation.

    · The Company has now agreed to ground-based electromagnetic ("EM") surveys across all three targets and expects these activities to be undertaken and reported upon within the December 2018 quarter.

    · Funding for the EM surveys will be sourced from the sale proceeds associated with the divestment of the CARE gold tenements.


    Commenting, Alan Broome AM, Chairman of Strategic Minerals, said:

    "The ongoing work at Hanns Camp continues to deliver new and exciting exploration prospects within our nickel-focused tenement portfolio.

    "The recent sale of gold tenements that formed part of the CARE Laverton Project has allowed the Company to principally focus its exploration attention on the potential for nickel sulphides. The Board believes that the Company's tenement portfolio is excellently positioned in Laverton to pursue nickel sulphides, given the province is already host to several world-class deposits

    "We look forward to the next phase of exploration in our search for the next nickel sulphide discovery inWestern Australia."





    CARE Tenements

    In 2016, the Company funded a drilling programme at the highly prospective Hanns Camp Prospect 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 100% tenements inWestern Australiaand also has access to mining rights for cobalt, nickel and rare earth elements in some tenements.

    In September 2018, SML announced an exchange of contracts for 4 exploration tenements in the CARE package which are focused on gold potential. This divestment has allowed the Company to focus its principal exploration activities on the potential for nickel sulphides.

    The Laverton Project is located in the Eastern Yilgarn Craton inWestern Australia, a region 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 tonnes (Mt) at 1.51% nickel (Ni) between 1974 and 1992. Other more recent discoveries in the region, located north and south along trend 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 Prospectivity and Work Programme
    In June 2018, SML completed a 65-hole air core drilling programme of which 25 holes were targeting interpreted favourable geological settings for the formation of nickel sulphides.

    The target areas were initially recognised from geological interpretation with coincidental highs in aeromagnetics. The drilling successfully identified ultramafic host rocks that are essential for the development of potential sulphide mineralisation.

    Follow up work has confirmed three key targets for further investigation, namely, Hanns Camp South, Royal North and Royal Central.

    Dr. Martin Gole, who is a leading expert in ultramafic hosted nickel deposits recently completed a data review and site visit. Dr. Gole summarised that the identified targets have the preferred rock types and characteristics and therefore display potential to be komatiite lava channel embayments, and as such "are highly prospective for nickel sulphide mineralisation."

    Based on Dr. Gole's recommendation, the Company will complete a fully funded ground-based EM survey across all three targets, which is planned to commence in the fourth quarter 2018. Results of the EM survey will be released as soon as they become available.
     
    Last edited: Sep 24, 2018
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    28 September 2018

    Strategic Minerals Plc

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


    Interim Results - Half Year to 30 June 2018


    US $2.4m Value Added Through Acquisition of Leigh Creek Copper Mine

    Strategic Minerals Plc (AIM: SML; USOTC: SMCDY), the diversified mineral development and production company, is pleased to announce its unaudited interim results for the half year ended 30 June 2018.

    Financial Highlights:


    · After tax profit of $2,406,000 (H1 2017 $158,000)

    · Corporate activity, through the acquisition of Leigh Creek Copper Mine ("LCCM"), adds significant value as noted by the Company booking an after tax profit of $2.4m (AUD $3.1m) on its purchase. The price at which the Company was able to purchase LCCM, while a fair price for its vendors, reflected the limited financial resources the vendors had available to progress the project to an operational level. The profit booked, reflects the independently estimated added value the Company has already brought to the project through its ability to supply such capital.

    · Pre-tax profit of $1,246,000 (H1 2017: $690,000) from the Company's Cobre operation, prior to intercompany management charges, continues to underpin corporate cash flow.

    · Directors exercised 15m vested options and acquired further stock in the Company.

    · Issue to Directors of 128m options over three tranches vesting at 5.5p, 7.5p and 10.0p.

    · Investment in Cornwall Resources Limited ("CRL") of $107,317, the owner of the Redmoor tin-tungsten project, maintaining the Company's 50% interest in CRL.

    · Issue of 38,700,900 SML shares, in April 2018, issued at the month of March 2018 Volume Weighted Average Price ("VWAP") of 1.9067 pence per share as part payment for the acquisition of LCCM.

    · Unrestricted cash and cash equivalents at 30 June 2018 were $1,988,000 (31 Dec 2017: $3,706,000). The reduction in cash balances reflects the acquisition of LCCM, payment of US tax liabilities and investment into CRL.


    Corporate Highlights:


    · Completion of the acquisition of Leigh Creek Copper Mine ("LCCM") in the North Flinders Ranges in South Australia through its wholly owned subsidiary Ebony Iron Pty Ltd. The Company also organised a team to undertake the recommissioning of the mine and expects LCCM to be in production in 2019. This is of huge strategic importance to the Company as the commencement of operations will see the creation of a second cash flow stream. Additionally, access to the project and its cash flows is 100% controlled by the Company.

    · The Board was expanded to four members with the addition of Mr Jeffrey Harrison. His extensive practical mining engineering skills are expected to prove invaluable as the Company progresses its LCCM and Redmoor projects.

    · Access to the Cobre magnetite stockpile was rolled over in line with the relationship the Company has with the mine owner, and the Company expects this to continue in the future.

    · Sales contract re-negotiation with major Cobre client. The Company negotiated with one of Cobre's major clients which, due to internal issues, had been unable to take the material required under their contract. The Company and the client agreed to amend the existing contract such that the client could make a series of quarterly payments, placing the Company in approximately the same cash position as if the contract had been fully met.

    · Resource update for the Redmoor project. A resource update noting an almost doubling of the high grade Inferred Mineral Resource at Redmoor was published by Cornwall Resources Limited ("CRL") and identified the need for further drilling to expand the resource base and improve the project's economic viability.

    · Investment in CRL and the provision of an underwriting agreement for our joint venture partner's equity. The Company considered that momentum needed to be maintained at Redmoor and that a commitment and commencement of a drilling programme for 2018 was critical to the development of the project. At the time, SML's joint venture partner, New Age Exploration Limited ("NAE") did not have the financial capacity to commit to the programme but was preparing for an equity raise. The Company took the view that it was imperative for the momentum of the project that drilling commence and, accordingly, underwrote NAE's portion of the programme, whilst providing NAE the longest possible time in which to make their equity payment. Subsequently, NAE completed an equity raise and the underwriting was cancelled.

    · The Company hosted a Shareholders' Meeting following its AGM. This provided shareholders the opportunity to interact with the full Board in an informal environment.


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

    "The first half of 2018 has been a pivotal period for the Company, most notably with the completion of the watershed acquisition of Leigh Creek Copper Mine. We believe the acquisition of this asset and the expected commencement of its operations in 2019 provide a strategically significant shift in the risk profile of the Company. The addition of a second revenue stream, particularly one derived from a wholly owned asset, ensures the sustainability and access to cash flows that form the base on which the Company expects to create long term growth for its projects and provide value to its shareholders.

    "We are also delighted to welcome Jeff Harrison to our Board. His arrival has significantly expanded the Company's skill base as it enters an extremely exciting period in the development of Leigh Creek, Redmoor and Hanns Camp."


    Chairman's Statement

    Financial results

    The results for the first half of 2018 are pleasing as they reflect the value added by the Board and Management from the judicious acquisition of Leigh Creek Copper Mine. This augurs well for the Company being able to report a full year 2018 result that will exceed its record performance in 2017. After tax profit for H1 2018 of $2,406,000 not only compares well with the previous period (H1 2017 $158,000) but also compares well with the full year performance in 2017 of $1,586,000.


    Unrestricted cash on hand as at 30 June 2018 was $1,988,000 and is expected, when combined with cash flows being generated at the Cobre operations, to assist in funding development of the Leigh Creek operations whilst allowing for minimal dilution to current shareholders.


    Operating profit of $1,246,000 from our Cobre magnetite stockpile, prior to intercompany management fees, marked an 80% increase in profitability versus the first half of 2017 ($690,000). This increase in profits was achieved despite our major client not being able to take their minimum purchase levels during the half year.


    Corporate overheads of $838,000 have almost doubled (H1 17 $435,000) and are reflective of the substantial growth the Company has undertaken, however the Board's commitment to maintain lean corporate overheads remains in place to ensure the Company's growth is consistent with its activities.


    Addition of New Director

    In February, the Board appointed a fourth Director, Jeffery Harrison. The growth of the Company was considered sufficient to justify the addition of another Director. The Board identified Jeff as a suitable candidate given his strong background in mining engineering, his knowledge of Cornish mining and his Australian mining experience.


    Strategy Focus

    The Board has continued to focus on the appropriate strategy for the Company and, as a multi-resource miner, considers this helps to differentiate the Company from many of its peers.


    The Company continues to maintain a three-pronged approach to investing in diversified material projects, concentrating on:


    1. Coal and Bulk Materials - potential projects in this sector that are tied to current contracts and further offtake arrangements at attractive prices.


    2. Advanced Materials - considering project opportunities in materials where it expects demand to increase over the coming years (such as rare earth elements and graphite).


    3. Metals - identifying projects exposed to metals that it expects to have price improvements over the next three to five years (such as cobalt, nickel, copper and tin-tungsten).


    This strategy is combined with the Company's desire to balance cash requirements through a mix of cash, near cash, brownfields and greenfields projects designed to utilise cash generated from operations for the greatest long term benefit of shareholders.


    Accordingly, the Company invests surplus cash flow from Cobre into the recommencement of operations at Leigh Creek Copper Mine and drilling programmes for its two major exploration projects - CARE (nickel and cobalt focused) and Redmoor (tin/tungsten focused).



    Cobre Operations


    The Company has worked closely with the management at Cobre in handling negotiations with a key client. The client needed, due to their own circumstances, to vary their contract and a temporary compromise has been implemented that provides Cobre approximately the same cash position it would have been in should the contract have been honoured as originally written.


    This substantial cash flow continues to underwrite operations and minimise calls on shareholders for capital.


    Leigh Creek Copper Mine


    The first half of 2018 has seen the Company complete the acquisition of the Leigh Creek Copper Mine.


    The Project is based in the northern Flinders Ranges of South Australia and is accessible from the township of Leigh Creek. It has three approved mining leases that cover a number of copper oxide deposits, including Lorna Doone, Lynda, Mountain of Light (Rosmann East and Paltridge South) and the Mount Coffin deposit. An estimated JORC 2012 compliant Resource of 3.61mt @ 0.69% copper for 24,900 of copper metal forms the base of the project. Additional, non JORC compliant ore sources of 1.8Mt @ 0.68% copper have also been identified within existing mining leases.


    It was the Board and Management's belief that this represented exceptional value at the negotiated purchase price of AUD $3m and this has subsequently been confirmed by independent assessment which has placed the assets purchased at AUD $6.1m. This resulted in a gain of US $2.4m being recognised in the half year due to this bargain acquisition.


    Post acquisition, the Company has moved quickly to set up a highly skilled team tasked to recommence mine operations in 2019. Existing contracts in place ensure that 100% of the production will be sold at 85% of LME prices.


    This potential sizeable cash flow from Leigh Creek Copper Mine has a very strategic impact on the risk profile of the Company. The ability to have two revenue streams insulates the Company from risks that may impact on the Company and positions us for further growth.


    The Board is confident that developments at Leigh Creek Copper Mine will help to drive company valuation through 2019.


    Redmoor tin-tungsten project


    In March 2018, a resource update indicating a 4.5Mt high-grade Inferred Mineral Resource was released. This represented an almost 100% increase over the high-grade Inferred Mineral Resource reported in 2015. The resource was defined in high-grade zones within the Sheeted Vein Systems and drilling had identified a further 4 - 6Mt high grade exploration target within the Sheeted Vein System.


    In March 2017, the Company, through its 50% investment in Cornwall Resources Limited ("CRL") began a drilling programme at the Redmoor project located in the world class Cornwall tin-tungsten-copper mineralised district.


    Scoping level mineral processing and underground mining studies were undertaken by Fairport Engineering Ltd (UK). To maintain this momentum a further drilling programme was commenced, and the Company provided its 50% contribution for drilling costs. Further, the Company underwrote the 50% contribution of its joint venture partner, New Age Exploration Limited ("NAE"). This ensured the timely commencement of drilling and certainty of funding, whilst providing New Age Exploration the longest time practical for it to raise its funding. After June, NAE was able to raise the required funding and the Company's underwriting commitment was cancelled.


    Prior to undertaking the drill programme, an extensive community relations programme was undertaken and remains ongoing; the local community and Council are working closely with CRL in a highly collaborative manner.


    CARE


    During the first half of 2018, a 65 hole 3,863m air core drilling programme was completed at the Hanns Camp and Mt Weld Projects, This consisted of 25 holes totalling 1,290m being 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.

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

    The Company engaged Dr Martin Gole, an internationally recognised nickel expert, to assess the significance of the drill results and the prospectivity for potential nickel sulphide mineralisation.


    Issues of Capital


    During the half year, Directors in the Company exercised 15,000,000 vested options and a further 38,700,900 shares were issued as part payment for the acquisition of Leigh Creek Copper Mine.

    In February, in line with approvals received from shareholders in general meeting, Directors were issued 128,000,000 new options across three tranches which vest upon the share price staying above 5.5p, 7.5p and 10.0p for five consecutive days.

    Safety

    The Company continues to maintain a high level of safety performance with SML and its subsidiaries having no reportable environmental or personnel incidents recorded in the period. With the addition of Jeff Harrison as a Director, the Board took the opportunity to establish a separate Safety Sub-Committee chaired by Jeff, with Alan Broome AM as the other member.


    I would like to take this opportunity to thank my fellow Directors, our management and staff in New Mexico, Cornwall, South and Western Australia, along with our advisers, for their support and hard work on your behalf during the period. Additionally, I would like to thank our clients, contractors, suppliers and partners for their on-going support.



    Alan Broome AM

    Non-Executive Chairman

    28 September 2018

    Strategic Minerals - Interim Results - Half Year to 30 June 2018 https://www.voxmarkets.co.uk/rns/announcement/79ef6ba4-b154-4076-b01a-82953d749ac8
     
  18. Groucho

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  19. Groucho

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    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£121,250each 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 (£121,500) 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£332,000each.

    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 inTable 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 inTable 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.
     
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