Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF) has brought forward refurbishment plans for the New Cooks Kitchen (NCK) shaft at the South Crofty mine in Cornwall after an assessment of the state of the timbers.
Consequently, proceeds raised in a fundraise in May 2022 will be reallocated to accommodate the work, which will allow larger machinery to enter NCK at an earlier stage of mine development than previously expected.
Mine dewatering has been slowed, with the water level being maintained, to allow shaft refurbishment and dewatering to proceed concurrently.
As a result, shaft refurbishment and mine dewatering are now expected to be completed by the third quarter of 2025.
Reducing the pace of dewatering will free up approximately £4 million which will cover the cost of shaft refurbishment, the junior added.
All aspects of the ongoing Feasibility Study, except underground drilling, are expected to be completed in the current half year as previously stated; it said, with a preliminary economic assessment (PEA) for South Crofty on schedule for the second quarter of 2024.
In its statement, Cornish Metals also added it is funded for the remainder of 2024 and there is no anticipated impact on the overall cost of re-opening South Crofty arising from this rephasing.
Richard Williams, chief executive, said: "Cornish Metals is committed to safe, efficient and cost-effective work practises and has, accordingly, brought forward the refurbishment of NCK shaft.
“This is a key milestone for the project and demonstrates the confidence both we as a company and our largest shareholders have in the future of South Crofty.
“Importantly, management believes the project remains on track for production by the end of 2026."