Strategic Minerals advancing key projects in UK, US and Australia
What Strategic Minerals owns
Cobre (iron ore): In 2011, subsidiary Southern Minerals acquired the rights to process the Cobre magnetite stockpile in New Mexico where currently there are six years of tailings reserves.
Central Australian Rare Earths (nickel sulphide, cobalt): CARE holds tenements and has access to mining rights for cobalt, nickel, and rare earth elements in these tenements in Western Australia.
Leigh Creek (copper): Strategic acquired the rights to the old copper mine situated in the North Flinders Ranges of South Australia, 500km north of Adelaide in 2018. The project comprises three sites: Mountain of Light; Paltridge and Rosmann East.
Redmoor (tin tungsten): Located 25km from Plymouth, and 40km from the Drakelands (Hemerdon) tungsten mine and processing plant.
How it’s doing
In June, SML said it had boosted sales at the Cobre magnetite project in the US, despite the disruption of the coronavirus pandemic.
Quarterly sales were up 89% on quarter-end June 2019 and ahead 38% year-on-year.
Despite the suspension of mining activities at the adjacent copper mine, operations at Cobre continue to operate under protocols established to ensure contactless sales and have been successful in safeguarding employees and clients to date.
Meanwhile, the outcome of the long-running arbitration that Strategic was forced to undergo has confirmed that it is owed US$21.9mln plus interest by CV Investments, although whether the money will actually be paid remains open to question.
Group cash stood at U$533,000 as at June 30, 2020.
Meanwhile, at Redmoor, London-based Natural Resources Global Capital Partners (NRG) has been appointed to provide strategic and financial advice regarding advancing the tin and tungsten project. NRG is an independent advisory firm and merchant bank focused on the global metals and energy industries.
What the directors say: Peter Wale
“We are privileged to be working with NRG and are heartened by their enthusiasm for the Redmoor project and their recognition of value in, what the Board considers, a significant company asset,
- Leigh Creek becomes a second source of revenue
- Strategic Minerals now has total ownership of the Redmoor asset
- A recent preliminary assessment of the underground possibilities for Redmoor by consultant Wardle Armstrong concluded there is scope to mine 600,000 tonnes of ore a year for the next decade based on a 7.1mln-tonne resource with a 1.09% tin equivalent grade