Strategic Minerals PLC (LON:SML) has produced its first tonne of copper cement from Leigh Creek in South Australia.
The cement contained 70% copper and was processed at the Mountain of Light plant.
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Drilling at Leigh Creek’s Paltridge North prospect, meanwhile, has been raised by 46% to a JORC compliant 10,800 copper metal tonnes.
Strategic wants to be Australia's largest copper cement producer by mid-2020.
John Peters, managing director said: "The restart of production in 13 months from acquisition has reinforced the Board's confidence that the acquisition of LCCM [Leigh Creek] will prove to be a major value added asset and will provide significant on-going after tax cash flows from 2020.
At the Cobre tailings facility in New Mexico, maintenance work by its two main customers meant deliveries of iron ore fell to 9,472 tonnes from 42,401t as they suspended operations.
June should see normal deliveries resume said Peters.
A drone survey over the tailings dumps at Cobre had also indicated 71,000 tons of material, which is sufficient for a further seven years of operations subject to current arrangements continuing.
"The June quarter is expected to be another pivotal time for the company, with the expected resumption of copper production from the existing heaps at Leigh Creek and the acquisition of the other half of the Redmoor Tin/Tungsten project.”
Cash at the quarter-end was US$1.24mln.
Net cash flow from Cobre was $0.21mln for the quarter and impacted by one of the clients failing to make a $0.375mln payment due in the quarter.
Discussions with the client are underway but Strategic has issued a demand for payment.