Strategic Minerals PLC (LON:SML) (OTCMKTS:SMCDY) said it has received a positive updated mining scoping study and financial assessment from mining consultant Wardell Armstrong International in relation to the Redmoor tungsten and tin project in Cornwall.
The study shows the internal rate of return (IRR) at 29% and the net present value (NPV) at US$128mln
The indicative production rate proposed in the study was set at 600,000 tonnes per annum, with a potential mine life of 10-plus years based on 7.2mln tonnes of feed.
"Wardell Armstrong's updated independent financial model and mining study clearly validate the resilience of the project to variations in metal price, as well as illustrating the improved economics associated with mining high-grade feed early in the project life,” said Strategic Minerals executive director Peter Wale in a statement.
“These results spotlight Redmoor's potential as a world-class tungsten and tin mine, delivering attractive returns on investment. The company looks forward to working with NRG Capital to develop options for the development of the Redmoor tungsten and tin project that deliver value for shareholders."