Strategic Minerals (LSE:SML) rose 5.5pc to 1.7p on Thursday after revealing that a resource upgrade has led its Redmoor project to rank among the leading undeveloped tin-tungsten mining projects in the world. A drilling programme carried out by the firm’s 50pc-owned JV vehicle Cornwall Resources last year has led to a 200pc increase in the metal contained at the Cornwall-based project.

It now has an inferred mineral resource of 11.7Mt at 1.17pc tin equivalent up from 4.5 Mt at 1.00pc in March last year. Included in this figure is 10.2Mt at a cut-off grade of 0.65pc with an average tin equivalent grade of 1.26pc. According to Strategic, this reinforces the potential of mining the resource economically.

The business added that, on a contained metal and grade basis, Redmoor is now one of the leading undeveloped tin-tungsten mining projects globally. What’s more, last year’s drilling campaign also confirmed the continuity of the Sheeted Vein System.  This hosts the high-grade zones, over a strike length exceeding 1,000m and for some 650m down dip.

Finally, the work confirmed the potential to increase the resource at Redmoor. This is because its mineralisation remains open at depth over much of its length. It is also open to the west, with an additional high-grade Exploration Target of 4-8Mt at a grade of between 1-1.4pc.

Peter Wale, executive director at Strategic Minerals, said: ‘In the Company's view, the independent assessment of the inferred tin equivalent resource highlights the world class potential of the Redmoor project and sets an important milestone.

‘The significantly upgraded resource statement validates the strong drilling results received during the 2018 programme. This provides the Company and its joint venture partner, New Age Exploration, confidence to progress towards the goal of restarting mining at Redmoor.

‘In addition, apart from the area drilled sufficiently to be included in the Inferred Resource, SML considers that there remains serious target potential to the west along strike, as well as down dip. While this may provide an opportunity for future expansion of the resource, CRL's key focus, in the short term, will remain the area reported on in this release.’

Strategic Minerals 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 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.

Author: Daniel Flynn

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