Redmoor Tungsten-Tin Mine: One of UK's Most Valuable Minerals

The latest research and evaluation results of Redmoor Tungsten-Tin Mine, one of the most potentially valuable minerals in the UK, show that the mine’s internal rate of return is 29%, and the net present value (calculated at a discount rate of 8%) is US$128 million. There is a substantial increase.

The Redmoor tungsten-tin mine is located about 25 kilometers away from Plymouth City and the port and is explored and developed by Cornwall Resources (CRL) – it’s 100% owned subsidiary. According to the updated data on February 14, 2019, the total mineral resources of the Redmoor mine that meet JORC standards are 11.70 million tons, of which tungsten trioxide grade is 0.56%, the tin grade is 0.16%, the copper grade is 0.50%, and the cut-off grade is 0.45%.

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 optimized the review by prioritizing high-grade mineralization identified in CRL's recent drill program 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.

According to the latest mining research report, Redmoor's tungsten-tin mine plans to produce 600,000 tons per year, with a potential life of 12 years, and cumulative production of 7.2 million tons of ore (including tungsten trioxide grade 0.59%, tin 0.10%, and copper 0.39%). In addition, there may be more mineral resources in the depths of the mines and the west, and there is room for expansion in the future.

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. According to CRL, in terms of metal content, the Redmoor tungsten-tin mine is currently the world's largest undeveloped underground tin-tungsten mining project and is expected to become one of the largest tungsten deposits to be put into operation outside China in the next ten years.

The Redmoor tungsten-tin mine was first opened in the 18th century and was forced to shut down in 1892 due to low tin prices. From 1907 to 1934, part of the mine was reopened, and many exploration activities have been carried out since then. Between 1979 and 1985, with the assistance of the local government’s mineral assistance program, the Redmoor Tungsten-Tin Mine completed its 35-hole diamond drilling program. However, due to the collapse of the International Tin Council, the plan to build the factory came to an end. Until 2017, CRL began to conduct exploration and resource estimation work for it.

It is understood that there are a number of tungsten and tin mine projects in the UK under preparation currently, including the Drakelands tungsten mine, the world's fourth-largest tungsten, and tin mine. According to Roskill’s research, these mining projects in the country will increase their annual production capacity by 3,600 tons of tungsten and 3,700 tons of tin. Given that the demand for tungsten and tin is expected to rise sharply in the next ten years, the UK may become one of the world's main suppliers of tungsten and tin raw materials.

• < Prev
• Next >