TIDMCUSN
RNS Number : 0698A
Cornish Metals Inc.
18 January 2024
CORNISH METALS PROVIDES AN ACTIVITIES UPDATE AND 2024
OUTLOOK
Vancouver, January 17, 2024
Cornish Metals Inc. (AIM/TSX-V: CUSN) ("Cornish Metals" or the
"Company"), a mineral exploration and development company focused
on advancing the South Crofty tin project ("South Crofty" or the
"Project") located in Cornwall, United Kingdom, to a construction
decision, is pleased to provide an update on the progress of
activities and outlook for 2024.
Highlights
-- Important Milestones Achieved in 2023 :
o Updated Mineral Resource Estimate ("MRE") for South Crofty
Mine with a 31.6% increase to contained tin in the Indicated
Mineral Resource category for the Lower Mine;
o Construction and commissioning of the Water Treatment Plant
("WTP");
o Installation and commissioning of submersible pumps in New
Cook's Kitchen ("NCK") shaft;
o Commencement of dewatering of South Crofty Mine with the water
level currently down to 257 metres below the NCK shaft collar
level;
o Completion of metallurgical testwork drilling programme;
o Better than expected results from X-Ray Transmission ("XRT")
ore sorting testwork confirming the potential to materially reduce
tonnes milled, and reduce process plant capital and operating
costs;
o Installation of two single drum winders for shaft
re-access;
o Commencement of an exploration drilling programme at the Wide
Formation target.
-- 2024 Outlook:
o Mine dewatering:
-- Dewater to 195-fathom level (360 metres below surface) and
refurbish the pump station;
-- Progress to the second stage of dewatering of the deeper
levels of the mine;
o Commence underground infill drilling;
o Advance the South Crofty Feasibility Study: all study
components, with the exception of infill drilling, expected to be
completed in H1 2024;
o Preliminary Economic Assessment ("PEA") for South Crofty
planned before end of H1 2024 to provide interim guidance prior to
the publication of the Feasibility Study;
o Complete the 14-hole / 9,000 metre Wide Formation exploration
drill programme.
Richard Williams, CEO and Director of Cornish Metals, stated:
"The Cornish Metals team worked tirelessly in 2023, achieving
numerous important milestones, while further advancing and
de-risking the South Crofty project. Chief among these are the
construction of the WTP and commencement of dewatering of the mine
that continues to progress extremely well with water levels drawing
down as expected. Activity levels are expected to remain high
through 2024 with more important milestones to be met as we work to
further progress the South Crofty project towards a construction
decision."
Mine Dewatering Progressing Well
-- Mine dewatering and water treatment to remove dissolved
metals and suspended solids prior to discharge has been underway
since early November 2023 with up to 25,000m(3) per day of water
being pumped and treated from South Crofty Mine;
-- Progress is good, with the water level in the mine currently
ahead of projections despite the recent wet weather;
-- On January 17(th) the water level stood at 257 metres below the NCK shaft collar level;
-- Water levels in historic mines adjacent to South Crofty
remain unchanged while South Crofty water levels fall, confirming
that South Crofty is not hydrologically connected to neighbouring
historic mines and that the dewatering only comprises South Crofty
Mine;
-- Treated water from the WTP is being discharged into the Red
River, having a positive effect on the water quality of the river
downstream of the discharge point;
-- The treated water from South Crofty passes through a 75-kW
hydro-turbine located ahead of the discharge point that generates
up to 20% of the power consumed by the WTP. Other renewable energy
opportunities are being explored;
-- At current rates, the first stage dewatering to the
195-fathom level (approximately 360 metres below surface) is
anticipated to be completed in early Q2-2024;
-- Refurbishment of the 195-fathom pump station and installation
of permanent pumps is planned to take place during Q2 /
Q3-2024;
-- Lowering of the submersible pumps to below the 400-fathom
level (approximately 730 metres below surface) and commencement of
the second stage of dewatering is planned to commence in
Q3-2024;
-- The Company maintains guidance of 18-months (from the
commencement of dewatering in November 2023) to complete dewatering
of South Crofty Mine to the 400-fathom level.
Feasibility Study Progress
The Company is making good progress advancing the South Crofty
Feasibility Study with a substantial amount of the study completed.
All study components, with the exception of infill drilling, are
expected to be finalised in H1 2024.
The following Feasibility Study components have been
completed:
-- Geotechnical testwork - televiewer investigations and
geotechnical rock testing to confirm known historical structural
and rock mass property data;
-- Headframe structural modelling and refurbishment;
-- Schedule and costing for the refurbishment and recommissioning of NCK and New Roskear shafts;
-- Numerical modelling of the proposed underground mining methods and stope designs;
-- Phase 1 of the metallurgical testwork programme (mineralogy,
physical competency, characterisation XRT, heavy liquid separation
and gravity response testwork);
-- Concept engineering on paste backfill options and sighter testwork;
-- Ground investigations for the new mineral processing plant; and
-- Mineral processing plant design and layout, incorporating the
results of the metallurgical testwork programme and potential
future throughput expansions;
The following Feasibility Study components are underway:
-- Underground mine design and optimisation using the September
2023 South Crofty updated Mineral Resource Estimate;
-- A mine ventilation study, underground infrastructure design and hoisting analysis;
-- A Feasibility Study level engineering design for the paste backfill plant;
-- Hydrogeology, environmental, social, market and closure studies; and
-- Underground drilling options review started.
Wide Formation Target Exploration Drilling
-- A 14-hole / 9,000 metre drilling programme at the Wide
Formation target in the Carn Brea South exploration area commenced
in late summer 2023;
-- Drill programme to test the geometry and the continuity of
tin mineralisation within the Wide Formation target - testing an
area measuring 2,500m along strike (northeast to southwest) and
500m downdip (north to south);
-- Two drills are on-site with holes No. 7 and No. 8 currently underway;
-- Great Flat lode and Wide Formation mineralisation structures
have been intersected where expected;
-- 4,700 metres drilled to date and assays will be reported when available;
-- Drilling programme expected to be completed in summer 2024.
ABOUT CORNISH METALS
Cornish Metals is a dual-listed company (AIM and TSX-V: CUSN)
focused on advancing the South Crofty high-grade, underground tin
Project through to a construction decision, as well as exploring
its additional mineral rights, all located in Cornwall, United
Kingdom.
-- South Crofty is a historical, high-grade, underground tin
mine that started production in 1592 and continued operating until
1998 following over 400 years of continuous production;
-- The Project possesses Planning Permission for underground
mining (valid to 2071), to construct new processing facilities and
all necessary site infrastructure, and an Environmental Permit to
dewater the mine;
-- South Crofty has the 4(th) highest grade tin Mineral Resource
globally and benefits from existing mine infrastructure including
multiple shafts that can be used for future operations;
-- Tin is a Critical Mineral as defined by the UK, USA, and
Canadian governments, with approximately two-thirds of the tin
mined today coming from China, Myanmar and Indonesia;
-- There is no primary tin production in Europe or North America;
-- Tin connects almost all electronic and electrical
infrastructure, making it critical to the energy transition -
responsible sourcing of critical minerals and security of supply
are key factors in the energy transition and technology growth;
-- South Crofty benefits from strong local community and
regional and national government support.
-- Cornish Metals has a growing team of skilled people, local to
Cornwall, and the Project could generate 250 - 300 direct jobs.
An updated Mineral Resource was completed in September 2023 with
a 39% increase in tonnes and 32% increase in contained tin in the
Indicated category for the Lower Mine (see news release dated
September 13, 2023 ) as summarised below:
South Crofty Summary (JORC 2012) Mineral Resource Estimate
Area Classification Mass Grade Contained Tin
(kt) /
Tin Equivalent
(kt)
---------------- ------ ----------- ----------------
Lower Mine Indicated 2,896 1.50% Sn 43.6
---------------- ------ ----------- ----------------
Inferred 2,626 1.42% Sn 37.4
----------------------------- ------ ----------- ----------------
Upper Mine Indicated 260 0.99% SnEq 2.6
---------------- ------ ----------- ----------------
Inferred 465 0.91% SnEq 4.2
----------------------------- ------ ----------- ----------------
The Mineral Resource Estimate for South Crofty is available in a
report titled " South Crofty Tin Project - Mineral Resource Update
NI 43-101 Technical Report ", dated October 27, 2023, co-authored
by Mr. N. Szebor (MCSM, MSc, BSc, CGeol, EurGeol, FGS) and Mr. R.
Chesher (FAusIMM(CP), RPEQ, MTMS) of AMC Consultants, and can be
accessed through the above link and on the Company's SEDAR+
page.
TECHNICAL INFORMATION
The technical information in this news release has been compiled
by Mr. Owen Mihalop who has reviewed and takes responsibility for
the data and geological interpretation. Mr. Owen Mihalop (MCSM, BSc
(Hons), MSc, FGS, MIMMM, CEng) is Chief Operating Officer for
Cornish Metals Inc. and has sufficient experience relevant to the
style of mineralisation and type of deposit under consideration and
to the activity which he is undertaking to qualify as a Competent
Person as defined under the JORC Code (2012) and as a Qualified
Person under NI 43-101. Mr. Mihalop consents to the inclusion in
this announcement of the matters based on his information in the
form and context in which it appears .
ON BEHALF OF THE BOARD OF DIRECTORS
"Richard D. Williams"
Richard D. Williams, P.Geo
For additional information please contact:
Cornish Metals Fawzi Hanano investors@cornishmetals.com
Irene Dorsman info@cornishmetals.com
Tel: + 1 (604) 200 6664
SP Angel Corporate Finance Richard Morrison Tel: +44 203 470 0470
LLP Charlie Bouverat
(Nominated Adviser & Joint Grant Barker
Broker)
Hannam & Partners Matthew Hasson cornish@hannam.partners
(Joint Broker) Andrew Chubb Tel: +44 207 907 8500
Jay Ashfield
BlytheRay Tim Blythe tim.blythe@blytheray.com
(Financial PR) Megan Ray megan.ray@blytheray.com
Tel: +44 207 138 3204
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release .
Caution regarding forward looking statements
This news release contains certain "forward-looking information"
and "forward-looking statements" (collectively, "forward-looking
statements"). Forward-looking statements include predictions,
projections, outlook, guidance, estimates and forecasts and other
statements regarding future plans, the realisation, cost, timing
and extent of mineral resource or mineral reserve estimates,
estimation of commodity prices, currency exchange rate
fluctuations, estimated future exploration expenditures, costs and
timing of the development of new deposits, success of exploration
activities, permitting time lines, requirements for additional
capital, future or estimated mine life and other activities or
achievements of Cornish Metals, including but not limited to:
mineralisation at South Crofty, mine dewatering expectations,
Cornish Metals' exploration drilling programme, timing and results
of Cornish Metals' feasibility study, strategic vision of Cornish
Metals and expectations regarding the South Crofty mine, timing and
results of projects mentioned. Forward-looking statements are
often, but not always, identified by the use of words such as
"seek", "anticipate", "believe", "plan", "estimate", "forecast",
"expect", "potential", "project", "target", "schedule", "budget"
and "intend" and statements that an event or result "may", "will",
"should", "could", "would" or "might" occur or be achieved and
other similar expressions and includes the negatives thereof. All
statements other than statements of historical fact included in
this news release, are forward-looking statements that involve
various risks and uncertainties and there can be no assurance that
such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such statements.
Forward-looking statements are subject to risks and
uncertainties that may cause actual results to be materially
different from those expressed or implied by such forward-looking
statements, including but not limited to: risks related to receipt
of regulatory approvals, risks related to general economic and
market conditions; risks related to the availability of financing;
the timing and content of upcoming work programmes; actual results
of proposed exploration activities; possible variations in Mineral
Resources or grade; outcome of the current Feasibility Study;
projected dates to commence mining operations; failure of plant,
equipment or processes to operate as anticipated; accidents, labour
disputes, title disputes, claims and limitations on insurance
coverage and other risks of the mining industry; changes in
national and local government regulation of mining operations, tax
rules and regulations.
Cornish Metals' forward-looking statements are based on the
opinions and estimates of management and reflect their current
expectations regarding future events and operating performance and
speak only as of the date such statements are made. Although the
Company has attempted to identify important factors that could
cause actual actions, events or results to differ from those
described in forward- looking statements, there may be other
factors that cause such actions, events or results to differ
materially from those anticipated. There can be no assurance that
forward-looking statements will prove to be accurate and
accordingly readers are cautioned not to place undue reliance on
forward-looking statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Cornish Metals does
not assume any obligation to update forward-looking statements if
circumstances or management's beliefs, expectations or opinions
should change other than as required by applicable law.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information pursuant to Article 7
of EU Regulation 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 as amended.
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UPDFLFVTLVIDLIS
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Cornish Metals (LSE:CUSN)
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