Strategic Minerals plc (AIM: SML; USOTC: SMCDY) has announced that the planned updated information to accompany the draft Program for Environment Protection and Rehabilitation ("PEPR") for the Leigh Creek Copper Mine ("LCCM") with the South Australian government has been delayed by a few weeks.
Previously, the Board had reported that it expected to provide updated requested information to the South Australian government in a draft form by the end of August.
However, after reviewing the information provided, and in consultation with the relevant government department, it has decided to delay a few weeks and lodge the information as a full PEPR application.
The Company's consultants have recommended this approach and the Company was encouraged as it opens the way for a PEPR approval before the end of the year, subject to internal South Australian government processes.
Funding
During the Company's current endeavours to secure project level funding for LCCM, it received feedback from potential investors in relation to its feasibility study analysis and, in particular, a request to update the likely capital cost of developing the Lynda/Lorna Doone deposit, scheduled to commence during the third year of operations.
The Lynda/Lorna Doone deposit is located approximately 70km north of the Paltridge North deposit and was included in the feasibility study announced in November 2019. The proposed funding of the development of Lynda/Lorna Doone is intended to be sourced out of project cash flows.
The Company is currently organising an independent third party, familiar with this operation, to provide the update on the likely capital cost of developing Lynda/Lorna Doone.
Additionally, the Company has taken the opportunity to, in light of its operating experience, fine tune some of the key assumption variables of the feasibility study, which are focused on further enhanced expected profitability.
LCCM is also assessing the use of a mini Solvent Extraction Electronic Winning (SX-EW) plant process at site which has the potential to produce LME grade copper cathode for direct to market sale.
Whilst copper prices exhibited a significant downturn during the first half of 2020, prices have recovered substantially to above pre-covid levels and are currently higher than US$3.00/lb which is a 2 year high.
It is the intention of the Board to provide the market an update on the financial analysis shortly after receiving the capital cost review.
Commenting, John Peters, Managing Director of Strategic Minerals, said: "The Company continues to move the Leigh Creek Copper Mine forward with an expectation of operations commencing early 2021, subject to finance. This is likely to lead to significant cash flows during 2021.
At the same time, the Company is actively seeking funding to enable the early 2021 commencement of production and continues to review the planned operations to maximise returns from the project."
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