Cornwall Resources, a wholly owned subsidiary of the mineral company, Strategic Minerals, has identified further significant high-grade tin from samples taken near the Redmoor deposit.
The Group is actively exploring the Redmoor project (one of the world's largest undeveloped mining projects), located near to Kelly Bray in east Cornwall, for tin, tungsten, and copper.
CRL took four pit samples as a follow up of positive close-spaced auger sampling reported in September 2021. Specifically, CRL chose to conduct a short program of hand-excavated pits on identified 'Target B' to verify the geology ahead of potential future drilling at the site.
All four pit samples taken have confirmed in-situ mineralisation, thereby reinforcing previous trenching and auger results that had identified attractive exploration targets, CRL reported.
It recorded a significant, at or near surface, tin result in pit CRT04, which peaked at 0.68% tin. Estimated Project economics now show a large uplift in NPV8 to US$163m with a 33.1% IRR.
CRL is currently evaluating a potential 2022 exploration program to test the target’s depth. It highlighted that exploration of this tin target and adjacent areas, ‘is intended to verify the projected westward continuation of the Redmoor Sheeted Vein System (SVS) orebody.’
If confirmed, it could increase the proportion of tin, and total tonnage of a future resource. The proximity of the exploration area to the surface is also “likely to enhance project economics.”
The present status of the deposit is as a Mining Scoping Study based on Inferred Resources. Higher category resources are yet to be defined, the company told shareholders this morning.
The Company noted that it is currently in discussions with parties about asset level funding of future exploration and this is the preferred approach. It said interest in the Project has been increasing recently as metal prices for tin, copper and tungsten remain strong in the market.
As pictured above, current resource prices are close to, or significantly exceed, the levels previously employed on internally estimated Project economics.
Commenting on this morning’s news, Peter Wale, Executive Director of Strategic Minerals and Director of Cornwall Resources Limited (CRL), said: "These pit samples provide an important in-situ confirmation of the mineralisation identified earlier in the year at Redmoor West.
This bodes well for further exploration as CRL's experience to date at Redmoor suggests that grades often significantly increase at depth and when approaching the granite source.”
He highlighted to investors: "Accordingly, to find tin grades of this tenor close to the surface is very encouraging both for Project economics and for the resource tin/tungsten mix.CRL is currently formalising its next exploration plans to explore the depth extensions of this target and of the potential for a westward continuation of the main Redmoor (SVS) orebody."
View from Vox
In September, Strategic Minerals reported significant tin results from an auger and trench sampling programme undertaken around 1,000m to the west of the Redmoor resource.
It was reported that the Company had successfully completed the programme. In total, 117 samples were taken using a Stihl powered auger, from an average depth of 50cm.
Highlights included a significant tin result in trench CRT01 which peaked at 0.38% tin over a 2m sample interval and with nearby mineralisation spanning an overall width of 20 metres.
The Group noted that peak tin values of 0.87% and 0.20% tungsten were generated from close-spaced auger sampling within a 60m long anomalous area of greater than 0.10% tin.
Globally, the price of tin has reached new highs with the commodity nearly doubling in value over the past year. Following these results, the Company believes its strategy of investing in assets with the potential for long term commodity price appreciation has been reinforced.
“Latest tin prices are substantially higher than the price assumptions used in our October 2020 Scoping Study, this further strengthens our project economics,” Wale concluded.
Follow News & Updates from Strategic Minerals here: