Strategic Minerals to take full ownership of Redmoor
High grades at Redmoor recorded and strong sales at Cobre
Leigh Creek Copper Mine starts production
What Strategic Minerals owns
Cobre (iron ore): In 2011, subsidiary Southern Minerals acquired the rights to operate the Cobre magnetite stockpile in New Mexico where currently there are six years of tailings reserves.
Central Australian Rare Earths (nickel sulphide, cobalt): In 2016, the company funded a drilling programme at the highly prospective Hanns Camp located within CARE's Laverton Project. CARE holds tenements and has access to mining rights for cobalt, nickel, and rare earth elements in these tenements in Western Australia.
Leigh Creek (copper): Strategic acquired the rights to the old copper mine situated in the North Flinders Ranges of South Australia, 500km north of Adelaide in 2018. The project comprises three sites: Mountain of Light; Paltridge and Rosmann East.
Redmoor (50%-owned; tin, tungsten): Located 25km from Plymouth, and 40km from the Drakelands (Hemerdon) tungsten mine and processing plant. Cornwall Resources Limited, a joint venture with New Age Exploration, holds the Redmoor licence.
- Strategic Minerals has agreed to buy the 50% in Cornwall Resources Limited that it does not already own from joint venture partner, New Age Exploration Limited (NEW), giving it total ownership of the Redmoor asset. In June the company said it was in the process of finalising terms.
- A recent preliminary assessment of the underground possibilities for the Redmoor asset by the consultants Wardle Armstrong concluded there is scope to mine 600,000 tonnes of ore a year for the next decade. That is based on a 7.1mln-tonne resource with a 1.09% tin equivalent grade.
- In June, the miner raised £890,000 through an equity raise to fund the acquisition of Cornwall Resources. The placing was supported by the company's largest existing shareholder, the Manners family
- Strategic Minerals generated a profit of US$1.47mln in the year to December 2018, marginally down from the profit of US$1.59mln generated in 2017 as it invested in the development of its projects. As at 31 December 2018, the group had cash of US$1.84mln.
- Strong sales at Cobre in 2018 produced net cash flow of US$2.163mln, which funded overheads and investment into project acquisition and development.
- The Leigh Creek Copper Mine was brought into production in April of this year and Strategic Minerals is looking to commence full operations in late 2019/early 2020.
What the boss says:
"Total control of Cornwall Resources will allow the company to efficiently deploy expected future cash flows from Cobre and Leigh Creek into the development of the Redmoor project," managing director John Peters said in the company's 2018 results.
He added: "The Strategic Minerals team looks forward to progressing and consolidating its projects throughout 2019, increasing production at Leigh Creek and preparing 2020 to be the year the company sees a second, material income stream arising from Leigh Creek."