Strategic Minerals PLC Leigh Creek Copper Mine Update (5958Y)
September 10 2020 - 2:13AM
UK Regulatory
TIDMSML
RNS Number : 5958Y
Strategic Minerals PLC
10 September 2020
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
10 September 2020
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Leigh Creek Copper Mine Program for Environment Protection and
Rehabilitation Lodged
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing
mineral company actively developing projects prospective for
battery materials , announces that, in line with its 1 September
2020 notice to the market, the Company's wholly owned subsidiary,
Leigh Creek Copper Mine ("Leigh Creek", "LCCM" or the "Project"),
has formally lodged with the South Australian government its
Program for Environment Protection and Rehabilitation ("PEPR") in
relation to its planned operations in accessing the Paltridge North
deposit.
Given the level of detail reviewed in the draft submission and
the encouragement received to date by the South Australian
government, the Company feels confident that an approval will be
forthcoming before the year end, paving the way for full scale
operations to commence in 2021, subject to finance.
As reported in the 1 September 2020 RNS, an independent third
party has been contacted and we can now confirm that PPM Global,
who have operated the Mountain of Light plant for both the Company
and the previous owners, Phoenix Copper, have been engaged to
update and review the likely capital cost of developing the
Lynda/Lorna Doone deposit. The Lynda/Lorna Doone deposit is located
approximately 70km north of the Paltridge North deposit and was
included in the feasibility study announced in November 2019. The
proposed funding of the development of Lynda/Lorna Doone is
intended to be sourced out of project cash flows from the LCCM mine
subject to the recommencement of production.
At current copper prices, and with many of the market
commentators indicating further upward pressure on prices, the
Project's anticipated economics have become more robust.
It is the intention of the Board to provide the market an update
on the financial analysis shortly after receiving the capital cost
review which is expected before the end of September.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"The lodgement of the full PEPR and the strong recovery in
copper prices increases the likelihood that 2021 will see the
full-scale re-commencement of operations at Leigh Creek.
While the process of getting Leigh Creek into operation has
taken longer than initially anticipated, the goal of developing a
second income stream within SML remains of key strategic importance
in building long term wealth within the Company. "
For further information, please contact:
+61 (0) 414 727
Strategic Minerals plc 965
John Peters
Managing Director
Website: www.strategicminerals.net
Email: info@strategicminerals.net
Follow Strategic Minerals on:
Vox Markets: https://www.voxmarkets.co.uk/company/SML/
Twitter: @SML_Minerals
LinkedIn: https://www.linkedin.com/company/strategic-minerals-plc
Facebook: https://www.facebook.com/search/top/?q=strategic%20minerals%20plc
+44 (0) 20 3470
SP Angel Corporate Finance LLP 0470
Nominated Adviser and Broker
Ewan Leggat
Charlie Bouverat
Notes to Editors
Strategic Minerals plc is an AIM-quoted, operating minerals
company actively developing projects prospective for battery
materials. It has an operation in the United States of America and
Australia along with development projects in the UK and Australia.
The Company is focused on utilising its operating cash flows, along
with capital raisings, to develop high quality projects aimed at
supplying the metals and minerals being sought in the burgeoning
electric vehicle/battery market.
In September 2011, Strategic Minerals acquired the distribution
rights to the Cobre magnetite tailings dam project in New Mexico,
USA, a cash-generating asset, which it brought into production in
2012 and which continues to provide a revenue stream for the
Company. This operating revenue stream is utilised to cover company
overheads and invest in development projects orientated to
supplying the burgeoning electric vehicle/battery market.
In January 2016, the portfolio was expanded with the acquisition
of shares in Central Australian Rare Earths Pty Ltd, which holds
tenements in Western Australia prospective for cobalt, nickel
sulphides and rare earth elements. The Company has since acquired
all shares in Central Australian Rare Earths Pty Ltd. In September
2018, the Company entered contracts for the sale of certain CARE
tenements identified as gold targets.
In May 2016, the Company entered into an agreement with New Age
Exploration Limited and, in February 2017, acquired 50% of the
Redmoor Tin/Tungsten project in Cornwall, UK. The bulk of the funds
from the Company's investment were utilised to complete a drilling
programme that year. The drilling programme resulted in a
significant upgrade of the resource. This was followed in 2018 with
a 12-hole 2018 drilling programme has now been completed and the
resource update that resulted was announced in February 2019. In
March 2019, the Company entered into arrangements to acquire the
balance of the Redmoor Tin/Tungsten project. This was completed on
24 July 2019.
In March 2018, the Company completed the acquisition of the
Leigh Creek Copper Mine situated in the copper rich belt of South
Austra lia and temporarily brought the project into production in
April 2019. Recommencement of full-scale processing is expected in
2021.
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