Strategic Minerals Plc (LON:SML) shares surged in mid-morning trading Thursday after it confirmed new copper mineralisation at its Leigh Creek copper project in South Australia.
The mineral producer said it had intersected “significant copper mineralisation” at the Rosmann East pit, including;
• Hole RERC18-02 – 13-67m (end-of-hole), 54m at 1.41% Copper (Cu)
o Including: 27-49, 22m at 2.58% Cu
• Hole RERC18-01: 12-62, 50m at 0.43% Cu
• Depth of mineralisation not closed off by drilling, with the RERC18-02 end of hole assay of 1m at 1.1% Cu
Follow up diamond drilling had been commenced following the results, with the company adding that it had also completed a 250-hole shallow air core programme for all existing heap leach pads and they were awaiting assay results.
WATCH: Strategic Minerals 'exceptionally pleased' as Leigh Creek drilling hits further mineralisation
Strategic also said it had completed a 10 hole, 500m reverse circulation drilling programme to test for copper oxide potential between the Lynda and Lorna Doone deposits with only minor mineralisation returned in the assays.
The group had also begun a refurbishment programme to restart the Mountain of Light processing facility, with wet commissioning scheduled to be completed in the first quarter of 2019.
John Peters, managing director of Strategic Minerals, said the firm was “exceptionally pleased” with the progress made toward recommencement of copper production at the site.
He added that there was a prospect the processing facility could be ready ahead of schedule, which would provide “an opportunity to start copper production potentially earlier in the first half of 2019”.
Shares were up 12% at 1.4p.