Strategic Minerals (AIM: SML ), said its 100% owned subsidiary Cornwall Resources ("CRL") has received a positive updated mining scoping study and financial assessment from mining consultants Wardell Armstrong International ("WAI"). 

In August 2020, CRL commissioned WAI to conduct an update its mining schedule and to produce an independent financial model on its planned Redmoor project in Cornwall, UK.  

The review augments a former underground mining scoping study completed in April 2019.  

CRL and WAI have optimised the review by prioritising high-grade mineralisation identified in CRL's recent drill programme based on developing initial deeper access to the orebody.   

The review gave a ‘significant uplift’ to the economics of the Redmoor tin and tungsten project when compared with 2019 results, with a 29% internal rate of return (“IRR”) (previously 19%) and US$128m net present value (“NPV”) increasing by 35% from $94m. 

Shares in Strategic Minerals have traded consistently at 0.42p over the past two weeks and opened at 0.425p this morning. 

Using more conservative pricing of $300/metric ton unit of tungsten trioxide, $20,000/tonne of tin, and $7,000/t of copper reflective of the current market, the project’s economic outcome remains robust with post-tax IRR at 23.4% and post-tax NPV at $91m. 

The orebody remains open at depth and to the west, where, work to date indicates, a high-grade exploration target of 4 - 8Mt, however this target is not included in WAI's analysis. 

SML said the results of the review successfully demonstrate the opportunity for ‘superior returns from development of this high-quality asset located in a low-risk OECD jurisdiction.’ 

"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 Peter Wale, Executive Director of Strategic Minerals and Director of CRL. 

He said the results spotlight Redmoor's potential “as a world-class tungsten and tin mine.” 

The Company is now working with advisory firm NRG Capital to advance the project further. 

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