Cornish Metals Inc. (
TSX-V/AIM:
CUSN) (“Cornish Metals” or the “Company”), a mineral
exploration and development company focused on its South Crofty Tin
Project (“South Crofty” or the “Project”) in Cornwall, United
Kingdom, is pleased to release an updated JORC (2012) Mineral
Resource Estimate (“MRE”) for the South Crofty Tin Project. Cornish
Metals has a 100% interest in, and is the operator of, the South
Crofty Project.
The focus of this new MRE is the Lower Mine area
(“Lower Mine”) tin-only section of the Project, which has been
subject to a thorough review, including further digitisation and
modelling of historical data, but the Upper Mine polymetallic area
has also been reported using current metal prices. Furthermore,
assay results from recent drilling of the existing major structures
at depth (No.4, No.8, Roskear and North Pool Zone) as part of a
metallurgical testwork programme, have been incorporated into the
new MRE.
This Lower Mine Tin-only updated MRE is
summarised in Table 1 below:
Table 1: Summary of South Crofty Lower Mine Mineral
Resource Estimate at 0.6% Sn Cut-Off Grade,
6th September 2023 |
Classification |
Mass(kt) |
Grade(% Sn) |
Contained Tin (t) |
Increase to Contained Tin from 2021
MRE
(t / %) |
Indicated |
2,896 |
1.50 |
43,573 |
10,475 / 31.6% |
Inferred |
2,626 |
1.42 |
37,422 |
5,026 / 15.5% |
Note: See footnotes below in Table 2.
Key Points
- 39.0% increase in tonnes and 31.6%
increase in contained tin in the Indicated Mineral Resource
category from the 2021 MRE (see news dated June 9, 2021);
- 35.6% increase in tonnes and 15.5%
increase in contained tin in the Inferred Mineral Resource category
from the 2021 MRE;
- This MRE is based on a 0.6% Sn
cut-off grade, as was used in the 2021 MRE;
- The majority of new Mineral
Resources are contained within the central part of the mine in No.
1, No. 2, No. 3, Main, Intermediate, North and Great Lodes
following digitization and modelling of historical data;
- The major lode structures that
comprise the Mineral Resource remain open along strike and at
depth;
- The MRE was prepared by Cornish
Metals’ in-house geology team and independently reviewed and
verified by Nicholas Szebor of AMC Consultants (UK) Ltd (“AMC”),
who takes responsibility for the estimate; and
- AMC will prepare an updated NI
43-101 Technical Report which will be filed on SEDAR within 45 days
of this announcement.
Richard Williams, CEO and Director,
stated; “This is another positive development for South
Crofty as we advance the Project through to delivery of a
Feasibility Study (“FS”) by the end of 2024 and continue to
demonstrate the potential to increase the Project’s Mineral
Resource and mine life. The updated MRE will be incorporated into
the FS mine plan scheduled for release before the end of 2024.”
Table 2 below details the Lower Mine MRE by
individual Lode / Zone:
Table 2: South Crofty Lower Mine Mineral Resource Estimate
at 0.6% Sn Cut-Off Grade, 6th
September 2023 |
Lode / Zone |
Classification |
Mass |
Grade |
Contained Tin |
(kt) |
(% Sn) |
(t) |
No. 1 and No. 2 |
Indicated |
479 |
1.31 |
6,281 |
No. 3 |
Indicated |
164 |
1.26 |
2,070 |
No. 4 |
Indicated |
488 |
1.76 |
8,595 |
No. 8 |
Indicated |
113 |
2.00 |
2,264 |
No. 9 |
Indicated |
98 |
1.47 |
1,442 |
Dolcoath |
Indicated |
466 |
1.39 |
6,464 |
Main/Intermediate/North/Great |
Indicated |
61 |
1.09 |
662 |
North Pool Zone |
Indicated |
283 |
1.35 |
3,814 |
Providence |
Indicated |
- |
- |
- |
Pryces / Tincroft |
Indicated |
347 |
1.18 |
4,092 |
Roskear |
Indicated |
397 |
1.99 |
7,889 |
Total Indicated |
2,896 |
1.50 |
43,573 |
No. 1 and No. 2 |
Inferred |
580 |
1.21 |
7,029 |
No. 3 |
Inferred |
183 |
1.13 |
2,079 |
No. 4 |
Inferred |
293 |
1.53 |
4,467 |
No. 8 |
Inferred |
149 |
2.08 |
3,103 |
No. 9 |
Inferred |
103 |
1.54 |
1,597 |
Dolcoath |
Inferred |
304 |
1.31 |
3,993 |
Main/Intermediate/North/Great |
Inferred |
276 |
1.16 |
3,214 |
North Pool Zone |
Inferred |
185 |
1.30 |
2,391 |
Providence |
Inferred |
98 |
1.55 |
1,578 |
Pryces / Tincroft |
Inferred |
177 |
1.34 |
2,375 |
Roskear |
Inferred |
278 |
2.01 |
5,596 |
Total Inferred |
2,626 |
1.42 |
37,422 |
Notes to Table 2:
- The Mineral Resource Estimate is reported in accordance with
the requirements of the Joint Ore Reserves Committee of the
Australian Institute of Mining and Metallurgy, the JORC Code
(2012).
- The Qualified Person for this Mineral Resource Estimate is: Mr
Nicholas Szebor, MCSM, MSc, BSc, Cgeol, EurGeol, FGS, of AMC
Consultants (UK) Ltd.
- Mineral Resources for the Lower Mine are estimated by
conventional block modelling based on wireframing at 0.4% Sn
threshold whilst honouring lode continuity and by ordinary kriging
or inverse distance to the power of 3 grade interpolation.
- Cut-off grade was calculated assuming a 24,500 $/t tin price
and an assumed metal recovery of 88.5%
- For the purpose of this Mineral Resource Estimate, assays were
capped by lode for the “Lower Mine” between 1.5% Sn and 23%
Sn.
- Bulk densities of 2.77 t/m3 have been applied for volume to
tonnes conversion for the Lower Mine.
- Mineral Resources for the Lower Mine have had a minimum mining
width of 1.2 m applied using 0% Sn dilution.
- Mineral Resources are estimated from a depth of approximately
350 m to a depth of approximately 870 m.
- Mineral Resources are classified as Indicated and Inferred
based on drillhole and channel sample distribution and density,
interpreted geological continuity and quality of data.
- The Mineral Resources have been depleted for past mining,
however, they contain portions that may not be recoverable pending
further engineering studies.
- Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability. The estimate of Mineral Resources
may be materially affected by environmental, permitting, legal,
title, taxation, socio-political, marketing, or other relevant
issues.
- Effective date 6th September 2023.
- Numbers may not compute exactly due to rounding.
Table 3 below details the Upper Mine MRE by
individual Lode / Zone. The only change to the Upper Mine MRE is a
recalculation of Tin equivalent grades due to changes in metal
prices since the 2021 MRE was published:
Table 3: South Crofty Upper Mine Mineral Resource Estimate
at 0.6% SnEq Cut-Off Grade, 6th
September 2023 |
Lode / Zone |
Mass |
Grade |
Contained Tin Equivalent |
(kt) |
% Sn |
% Cu |
% Zn |
% SnEq. |
(t) |
Dolcoath Middle |
90 |
0.72 |
0.88 |
0.16 |
1.01 |
904 |
Dolcoath Middle Branch |
37 |
0.89 |
0.34 |
0.02 |
1.00 |
367 |
Dolcoath Upper Main |
- |
- |
- |
- |
- |
- |
Dolcoath Upper South South Branch |
- |
- |
- |
- |
- |
- |
Dolcoath NVC |
- |
- |
- |
- |
- |
- |
Dolcoath Little NW |
12 |
0.69 |
0.16 |
0.87 |
0.81 |
99 |
Dolcoath Little NW FW |
- |
- |
- |
- |
- |
- |
Dolcoath Little NE |
- |
- |
- |
- |
- |
- |
Dolcoath South Entral |
122 |
0.62 |
0.91 |
1.05 |
1.00 |
1,213 |
Total Indicated |
260 |
0.69 |
0.78 |
0.59 |
0.99 |
2,583 |
Dolcoath Middle |
22 |
0.75 |
0.05 |
0.01 |
0.77 |
171 |
Dolcoath Middle Branch |
- |
- |
- |
- |
- |
- |
Dolcoath Upper Main |
271 |
0.61 |
0.60 |
0.22 |
0.82 |
2,210 |
Dolcoath Upper South South Branch |
88 |
0.50 |
0.73 |
1.83 |
0.88 |
778 |
Dolcoath NVC |
36 |
0.75 |
1.09 |
0.15 |
1.10 |
395 |
Dolcoath Little NW |
- |
- |
- |
- |
- |
- |
Dolcoath Little NW FW |
1 |
0.81 |
0.03 |
0.25 |
0.84 |
8 |
Dolcoath Little NE |
47 |
1.15 |
0.55 |
1.43 |
1.45 |
677 |
Dolcoath South Entral |
- |
- |
- |
- |
- |
- |
Total Inferred |
465 |
0.66 |
0.63 |
0.63 |
0.91 |
4,239 |
Notes to Table 3:
- The Mineral Resource Estimate is reported in accordance with
the requirements of the Joint Ore Reserves Committee of the
Australian Institute of Mining and Metallurgy, the JORC Code
(2012).
- The Qualified Person for this Mineral Resource Estimate is: Mr
Nicholas Szebor, MCSM, MSc, BSc, Cgeol, EurGeol, FGS, of AMC
Consultants (UK) Ltd.
- Mineral Resources for the Upper Mine are estimated by
conventional 3D block modelling based on wireframing at 0.5% SnEq
cut-off grade and a minimum width of 1.2m and estimated by inverse
distance to the power of 3 grade interpolation.
- SnEq is calculated using the formula: SnEq% = Sn% + (Cu% x
0.314) + (Zn% x 0.087). Cornish Metals has used metal prices of
US$24,500/Tonne Sn, US$8,000/Tonne Cu, and US$2,700/Tonne Zn.
Assumptions for process recovery are 88.5% for Sn, 85% for Cu and
70% for Zn.
- For the purpose of this Mineral Resource Estimate, assays were
capped by lode for the Upper Mine at 6% for Sn, 4% for Cu and 20%
for Zn.
- Bulk densities of 2.77 t/m3 and 3.00 t/m3 have been applied for
ore volume to tonnes conversion for the granite hosted and
metasediment (Killas) hosted Mineral Resources respectively.
- Mineral Resources are estimated from near surface to a depth of
approximately 350 m.
- Mineral Resources are classified as Indicated and Inferred
based on drillhole and channel sample distribution and density,
interpreted geological continuity and quality of data.
- The Mineral Resources have been depleted for past mining;
however, they contain portions that may not be recoverable pending
further engineering studies.
- Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability. The estimate of Mineral Resources
may be materially affected by environmental, permitting, legal,
title, taxation, socio-political, marketing, or other relevant
issues.
- Effective date 6th September 2023.
- Numbers may not compute exactly due to rounding.
BACKGROUND
- South
Crofty is a historical, high-grade, underground tin mine that
started production in the sixteenth century, and continued
operating until 1998;
- The
Project possesses Planning Permission for underground mining, valid
to 2071, Planning Permission to construct a mine water treatment
plant, new processing facilities, all necessary site
infrastructure, and an Environmental Permit to dewater the
mine;
- South
Crofty has the 4th highest grade tin Mineral Resource globally and
benefits from the presence of 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 75% of the Tin mined today coming
from China, Myanmar and Indonesia;
- There is
no primary tin production in Europe or North America;
-
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. The Project could generate 250 – 300
direct jobs.
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.
Independent Qualified
Person
This Mineral Resource Estimate was prepared by
Mr. Nicholas Szebor (MCSM, BSc, MSc, CGeol, EurGeol, FGS), General
Manager and Principal Geologist at AMC Consultants (UK) Limited, a
Qualified Person under National Instrument 43-101 (NI 43-101) and a
Competent Person as defined under the JORC Code (2012).
A Technical Report disclosing the Mineral Resource Estimate in
accordance with the requirements of NI 43-101 will be prepared by
AMC on behalf of Cornish Metals and filed on SEDAR within 45 days
of this news release. Mr. Szebor consents to the inclusion in this
announcement of the matters based on his information in the form
and context in which it appears.
Use of Foreign Reporting
Code
Mineral Resources are classified in accordance
with the JORC Code (2012). The confidence categories assigned under
the JORC Code were reconciled to the confidence categories in the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
Definition Standards – for Mineral Resources and Mineral Reserves
May 2014 (the CIM Definition Standards). Mineral Resource
classifications of “Indicated” and “Inferred” have been used in
this press release.
The South Crofty data has been reviewed and
verified in relation to CIM best operating practices for reporting
and for scope and content of JORC and NI 43-101 reporting through a
due diligence conducted by Mr. Nicholas Szebor (MCSM, BSc, MSc,
CGeol, EurGeol, FGS), General Manager at AMC, an independent
qualified person on behalf of the Company. The technical report in
respect of the updated Mineral Resource, when filed, will contain
more detailed information concerning individual responsibilities,
associated quality assurance and quality control, and other data
verification matters, and the key assumptions, parameters and
methods used by the Company.
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 delivery of a Feasibility Study,
as well as exploring its additional mineral rights, all located in
Cornwall, South West England. The former producing South Crofty tin
mine is located beneath the towns of Pool and Camborne, and closed
in 1998 following over 400 years of continuous production.
For additional information please contact:
In North America:
Irene Dorsman at (604) 200 6664 or by e-mail at
irene@cornishmetals.com
SP Angel Corporate Finance LLP (Nominated Adviser & Joint
Broker) |
Tel: |
+44 203 470 0470 |
|
Richard Morrison |
|
|
Charlie Bouverat |
|
|
Grant Barker |
|
|
|
|
Hannam & Partners(Joint
Broker) |
Tel / email: |
+44 207 907 8500 /
cornish@hannam.partners |
|
Matthew Hasson |
|
|
Andrew Chubb |
|
|
Jay Ashfield |
|
|
|
|
BlytheRay(Financial PR/IR-London) |
Tel: |
+44 207 138 3204 |
|
Tim Blythe |
tim.blythe@blytheray.com |
|
Megan Ray |
megan.ray@blytheray.com |
|
|
|
ON BEHALF OF THE BOARD OF
DIRECTORS
“Richard D. Williams”Richard D. Williams,
P.Geo
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.
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 "forward-looking
statements". Forward-looking statements, while based on
management's best estimates and assumptions at the time such
statements are made, 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 COVID-19 global pandemic and any variants of
COVID-19 which may arise; 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. Although Cornish Metals has
attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. Cornish Metals
undertakes no obligation or responsibility to update
forward-looking statements, except as required by law.
Appendix
"Cu" means Copper
"grade(s)" means the quantity of ore or metal in
a specified quantity of rock
"Indicated Mineral Resource" is that part of a
Mineral Resource for which quantity, grade or quality, densities,
shape and physical characteristics are estimated with sufficient
confidence to allow the application of mining, processing,
metallurgical, infrastructure, economic, marketing, legal,
environmental, social and governmental factors to support mine
planning and evaluation of the economic viability of the deposit.
Geological evidence is derived from adequately detailed and
reliable exploration, sampling and testing and is sufficient to
assume geological and grade or quality continuity between points of
observation. An Indicated Mineral Resource has a lower level of
confidence than that applying to a Measured Mineral Resource and
may only be converted to a probable mineral reserve.
"Inferred Mineral Resource" is that part of a
Mineral Resource for which quantity and grade or quality are
estimated on the basis of limited geological evidence and sampling.
Geological evidence is sufficient to imply but not verify
geological and grade or quality continuity. An Inferred Mineral
Resource has a lower level of confidence than that applying to an
Indicated Mineral Resource and must not be converted to a mineral
reserve. It is reasonably expected that the majority of Inferred
Mineral Resources could be upgraded to Indicated Mineral Resources
with continued exploration. An Inferred Mineral Resource is based
on limited information and sampling gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill holes.
"JORC Code" means the 2012 edition of the
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves prepared by the Joint Ore Reserves
Committee of the Australasian Institute of Mining and
Metallurgy, Australian Institute of Geoscientists and Minerals
Council of Australia. The JORC Code is an acceptable foreign code
for purposes of NI 43-101.
"kt" means thousand tonnes
"Lodes" means a vein of metal ore in the
earth
"MRE" means Mineral Resource Estimate
"Mt" means million tonnes
"Sn" means Tin
"Sn Eq" means Tin Equivalent. SnEq is
calculated using the formula: SnEq% = Sn% + (Cu% x 0.314) + (Zn% x
0.087). Cornish Metals has used metal prices of US$24,500/Tonne Sn,
US$8,000/Tonne Cu, and US$2,700/Tonne Zn. Assumptions for process
recovery are 88.5% for Sn, 85% for Cu and 70% for Zn.
"t" means tonnes;
"Zn" means Zinc
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