Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF) has highlighted its strong cash position and a number of significant developments as it reported its results for the three months ended 30 April 2023.
At the end of the period, Cornish Metals had net cash of $49,078,875, up from $4,286,535 a year earlier, boosted by a share offering. It also reduced its loss for the period to $206,802, down from a $979,427 loss at the same stage in 2022.
The Vancouver-based mineral exploration and development company focused on projects in Cornwall noted that the drill program at South Crofty, aimed at collecting samples for metallurgical testwork as part of the Feasibility Study, is nearing completion and is expected to finish by the end of June 2023.
It added that construction of the water treatment plant (WTP) is substantially complete, and dewatering is expected to commence later in the summer, with a construction cost estimated to be between £6.5mln and £7.0mln,
In the results statement, Richard Williams, CEO of Cornish Metals, expressed satisfaction with the progress made over the past year, commenting: "Dewatering of the mine is on track for commencing later this summer and other aspects of the project are well underway."
He also noted the company's plans to continue the exploration program of the Wide Formation at Carn Brea to demonstrate its Mineral Resource potential.
The company also provided updates on the construction progress of the WTP at South Crofty. Various enabling works have been completed, including the treated water discharge duct and the concrete foundation pad. Mechanical, electrical, and instrumentation equipment installation is expected to be completed in August 2023. Wet commissioning of the WTP is scheduled for August 2023, followed by mine dewatering.
Cornish Metals outlined its outlook, indicating the use of proceeds raised from a previous share offering to advance the South Crofty tin project. The company plans to construct the WTP, complete the dewatering program, conduct a drill program for metallurgical studies, produce an updated Mineral Resource estimate, and complete a Feasibility Study by the end of 2024. Additional exploration programs and evaluation of other potential targets are also being considered.
Cornish Metals acquired the South Crofty tin and United Downs copper/tin projects, along with additional mineral rights, in July 2016. The company aims to redevelop these sites, which have a historical mining presence for various minerals including copper, tin, zinc, and tungsten.