Strategic Minerals PLC (AIM:SML) said further significant high-grade tin was identified in four pit samples taken to the west of its main Redmoor deposit in Cornwall, UK.
Significant, at or near surface, tin was identified in pit CRT04, peaking at 0.68% tin.
The company, which only drilled to a depth of 2.60 metres in pit CRT04, is evaluating a potential 2022 exploration programme to test this target's depth, it said.
The work was carried out by its wholly owned subsidiary Cornwall Resources Ltd (CRL)
"These pit samples provide an important in-situ confirmation of the mineralisation identified earlier in the year at Redmoor West,” said Peter Wale, executive director of Strategic Minerals. “This bodes well for further exploration as CRL's experience to date at Redmoor suggests that grades often significantly increase at depth and when approaching the granite source.”
“Accordingly, to find tin grades of this tenor close to surface is very encouraging both for project economics and for the resource tin/tungsten mix.
"CRL is currently formalising its next exploration plans to explore the depth extensions of this target and of the potential for a westward continuation of the main Redmoor orebody," he said.
The company is in discussions with parties about funding future exploration and said interest in the project has been increasing recently amid strong prices for tin, copper and tungsten.
It noted that metal prices are close to, or significantly exceed, those used in May 2019 and October 2020 announcements on internally estimated project economics.
Updated internal estimates for the project now show a large uplift in net present value to US$163mln, using tin prices of US$37,660/tonne, with a 33.1% internal rate of return.