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 November, the company unveiled the results from an updated feasibility study on the first stage of development at its Leigh Creek copper mine, ahead of starting its three-phase development programme.

The miner said the feasibility study indicated a “pre-tax cash surplus” of US$30mln combined from its licenses at Paltridge North, Lynda and  Lorna Doone.

The company said that full production would begin at the lower risk Paltridge North deposit as a priority, thanks to its lower development risk and lower restating capital, and the proximity of these deposits to the existing Mountain of Light processing plant.

Strategic said that monthly production should be increased to 300 tonnes of saleable copper with a minimum grade of 70%, which would indicate a cash surplus going forward of US$6.4mln.

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Inflexion points

  • In January, the company said it is in ‘active discussions’ over the finance options to develop Leigh Creek as a second source of revenue
  • In November, the firm received £248,155 in R&D tax relief from HMRC relating to exploration work at its Redmoor tin and tungsten project in Cornwall
  • Strategic Minerals now has total ownership of the Redmoor asset
  • A recent preliminary assessment of the underground possibilities for Redmoor by consultantWardle 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