Strategic Minerals Plc (LON:SML) has reported encouraging first results from drilling at its Redmoor project in Cornwall.
Tungsten was intersected in the two holes completed so far, which were drilled to depths of up to 730m.
WATCH: Strategic Minerals 'feeling very comfortable' about the potential at Redmoor
Assay results from the two holes are expected in September.
Strategic added its partner at Redmoor has also paid its 50% share of the phase 1 drilling costs, which has halved its commitment to £332,000.
Phase 1 comprises a 4,000m, seven-hole programme, with a decision on a further 3,500m of drilling (phase 2) to be made in September.
Results from the full Phase 1 programme are expected in November.
Tax relief payment
Strategic has also received a cash payment of £101,000 net, from the UK Government for Research and Development tax relief in 2016 and 2017. A claim for 2018 will be submitted this year.
John Peters, Strategic’s managing director said: “The preliminary results from the first two holes, the funding from our JV partner and the receipt of research and development tax relief all bode well for the future of the Project.
"The 2018 drilling programme is designed with the expectation of delineating a sufficient resource to justify proceeding to a Pre-feasibility Study in 2019.”