Strategic Minerals Grants License Extension for Redmoor Tin and Tungsten Project

Strategic Minerals said its 100% owned subsidiary Cornwall Resources (CRL) has signed a 10-year extension to its existing Redmoor Tin and Tungsten Project exploration license agreement.

The initial Redmoor exploration license, which reportedly provided the right to explore the entire area and was set to expire in 2027, has now been extended to October 18, 2037. In addition, there is a mining lease option that provides CRL with the right to enter into a 25-year mining lease (extendable for a further 25 years) on any part of the license area.

A modest annual license fee is payable to the supplier for the duration of the exploration license, which is converted to a 3% net smelter return royalty to the supplier at the commencement of mining.

The initial exploration license was signed by New Age Exploration Limited in October 2012, whereby rights to a 23 square kilometer area around the Redmoor deposit in East Cornwall were acquired through an exploration license and mining lease arrangement.

CRL's latest Inferred Mineral Resource, produced by Cornwall-based consultant Geologica (UK), totals 11.7 mt at 0.56% sulphur dioxide, 0.16% tin, and 0.50% copper. A General Permitted Development Order (GPDO) application is underway seeking approval to conduct a focused drilling program to target new tin zones in the area.

The company explained that earlier trenching work across the Redmoor area indicated that potential near-surface tin deposits could accelerate the start of mining.

With prices for tin, tungsten and copper all significantly higher than those used in the November 21, 2021 update of the project's forecast economics, the directors said they believe the project's after-tax NPV is expected to increase further at 8% per annum from the previously reported $163 million. This is despite the expected increase in mining costs thereafter.

Peter Wale, Executive Director of Strategic Minerals and Director of CRL, said the new license extension end date secures the company's footprint in the region and adds long-term confidence to the tenure of the Redmoor Tin and Tungsten Project, explaining, "This comes at a time when Cornish assets are starting to attract more attention and valuations are rising. There is significant demand for tungsten in the U.S. oil and gas industry, and tungsten prices are creeping higher and are now approaching eight-year highs."

He added: "Last month, Canadian miners received a total of C$3.8 billion in potential government funding for the development of key minerals needed for electric vehicles and other technologies. We look forward to the British government taking a similar position."

Despite the expected increase in mining costs, the directors believe that the after-tax NPV of the project is expected to increase further from the $163 million previously reported by Redmoor, as tin, tungsten and copper prices remain significantly above November 2021 prices.

Tungsten prices have been rising in recent months and the commodity is now near an eight-year high, with particularly high demand from the U.S. oil and gas industry. With concerns over the supply of key minerals, U.S. regulations such as the newly invoked Defense Production Act to increase domestic production of minerals, and as the electric vehicle sector and the broader clean energy economy gain traction, similar policies are expected to be adopted in the United Kingdom.

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