Strategic Minerals (AIM:SML) said its resource infill drilling programme at the Redmoor Tungsten-Copper-Tin Project in Cornwall has surpassed 5,000 metres across nine drillholes, with more than 17,500 metres still to drill.
The explorer and mine developer is advancing Redmoor through its wholly owned subsidiary Cornwall Resources. And, it reported that all nine holes, drilled across three pads using three rigs, have intersected the full thickness of the Redmoor Sheeted Vein System, with wolframite, chalcopyrite and cassiterite mineralisation visually identified by CRL geologists pending assay results.
The programme feeds into a prefeasibility study, with Alfred H Knight now contracted for metallurgical testwork supported by TOMRA for ore sorting trials, and ALS Laboratories in Ireland processing samples; 696 samples have been analysed to date, with a further 196 from drillhole CRD044 in progress.
Tungsten pricing has moved in the company's favour since Redmoor's March economic sensitivity analysis, which modelled an upside case of $1,800 per mtu APT delivering a net present value of $2.71bn and an internal rate of return of 55%.
The 12-month average tungsten APT price stands at $1,929.95 per mtu, with the six-month average at $2,960.09, both above that upside scenario.
"The results to date are highly encouraging and continue to confirm our understanding of the resource and its economics," said Mark Burnett, Strategic Minerals executive director, adding that sustained pricing could provide "further upside" when the resource and economics are next reviewed.
CRL has expanded to 16 staff onsite and secured additional warehouse space to store incoming drill core as the programme continues.
News Intelligence what this means for the company
Strategic Minerals has completed 5,000m of its 22,500m infill drilling programme at Redmoor on time and on budget, with all nine drillholes intersecting the full vein system and visual mineralisation confirmed pending assays. Tungsten prices have moved sharply in the company's favour: the six-month average of $2,960/mtu is 64% above the $1,800/mtu upside case modelled in March's economic study, which itself projected an NPV of $2.71bn and IRR of 55%, suggesting material upside to those figures when economics are next reviewed.
The drilling programme is tracking to schedule and budget while commodity tailwinds have widened the project's economic margin. Completion of the prefeasibility study and assay results will be the next catalysts; sustained tungsten pricing at current levels would materially improve project returns versus the March base case.
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