Strategic Minerals PLC – Updated Redmoor Scoping Study

Strategic Minerals plc (AIM: SML), a producing mineral company actively developing projects prospective for battery materials, is pleased to announce that Cornwall Resources Limited (“CRL”), the joint venture vehicle developing the Redmoor Tin/Tungsten project, has received an updated scoping study it commissioned from mining consultants Wardell Armstrong International, following on from the recent Mineral Resource Estimate update.

On the basis of this study, CRL has carried out a preliminary assessment of the potential returns from an underground mining project at Redmoor in Cornwall.  This assessment suggests, based on a nominal plant feed rate of 600ktpa, an IRR of 19%, and an NPV of $94m, based on a capex of $89m. Further work will now be carried out to continue to advance and further optimise the project as it heads towards a pre-feasibility study (“PFS”).

Highlights:

• Positive outcome from scoping level underground mining study completed by regionally based consultants WAI; resultant indicative mine schedule confirms economic potential of project.\
• Study suggests an indicative production rate of 600ktpa; potential mine life of 10+ years.
• Life of Mine production schedule indicates 7.1Mt @ 1.09% tin equivalent grade.
• The results of the study have been modelled internally by CRL and already show strong positive returns, together with potential for further optimisation.
• Metallurgical testwork carried out in parallel confirms amenability of ore to gravity pre-concentration with good potential recoveries and grades.
• Significant upside has been identified with exploration target likely to extend the existing mine life as well as targeting high margin ores early in the production schedule.

John Peters, Managing Director of Strategic Minerals, commented:

“The recently completed mining study, while still based on an Inferred Mineral Resource, provides SML confidence that a major portion of the recently announced resource of 11.7Mt at 1.17% SnEq can potentially be economically mined.

“Using the results of this study, SML believes it has confirmed its view that Redmoor has the potential to be a world class tin and tungsten mine which will deliver attractive returns on investment.

“SML looks forward to continuing to add value to the project as it advances towards a PFS.”