TIDMSML
RNS Number : 6855P
Strategic Minerals PLC
11 October 2023
11 October 2023
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Cornwall Resources Limited Signs Memorandum of Understanding
with Oxford Sigma Limited
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable
producing mineral company, is pleased to announce that its 100%
owned subsidiary Cornwall Resources Limited ("CRL") has signed a
Memorandum of Understanding ("MOU") with Oxford Sigma Limited
("Oxford Sigma"), a nuclear fusion technology company based in
Oxfordshire, UK.
Highlights:
-- MOU outlines how the two parties will collaborate to explore,
develop, promote, and secure critical mineral supply pathways for
tungsten to supply the fusion industry.
-- As one of the only high-grade tungsten resources in the UK,
Redmoor has the potential to be one of these supplies. In turn
complementing the UK Government's Critical Minerals Strategy.
-- Dennis Rowland, CRL's Project Manager, and Dr Thomas Davis of
Oxford Sigma recently held discussions at CRL's Redmoor offices in
Cornwall, where Dennis demonstrated the strengths of the Redmoor
Project and the nature of its high-grade resource.
-- CRL were encouraged by the projections of future tungsten
requirements from the fusion industry, with each potential fusion
reactor estimated to need between 100 - 5,000 tonnes of tungsten
(design dependent), with a requirement to renew tungsten components
on a regular timeline further strengthening potential demand.
-- MOU signed for an initial 5-year period
Tungsten Supply and Fusion Energy
Currently over 90% of global tungsten supply is controlled by
China (84%), Vietnam (5.7%) and Russia (2.7%). It is imperative for
the security of supply of this critical material that long-term
alternative supplies are established.
Fusion energy is potentially a near-limitless source of
carbon-free energy for the future, and tungsten will be a key
component in the process, required for dense, highly efficient
radiation shielding and plasma-facing components within fusion
energy devices.
Fusion energy is actively being developed to reach
commercialisation with over US$6.2 billion of mainly private
investment worldwide (as of August 2023 according to the Fusion
Industry Association). However, without a viable commercial pathway
for the supply of tungsten from raw materials to the fusion
community, the commercialisation of fusion energy could face
significant delays.
The strategic collaboration with Oxford Sigma, further growing
its network of tungsten development projects, will provide a
combination of skills and assets to secure the source of raw
tungsten material in the UK, with the goal of deploying these
tungsten-based components across the globe.
Commenting, Dr Thomas Davis, CTO of Oxford Sigma Limited,
reflects:
"Following on from other recent MOUs in tungsten supply, Oxford
Sigma has entered into a key collaboration agreement with Cornwall
Resources Limited. This is a natural fit to further strengthen our
approach to securing long-term tungsten supply for the fusion power
industry. Commercial fusion power stations are expected to become
the ultimate domestic energy source, providing our clean power
needs for generations.
"To make fusion sustainable, we must address the need of
securing the supply of critical minerals, such as tungsten, and the
projects that will produce them. Most of the technology that Oxford
Sigma develops for fusion energy depends on large quantities of raw
tungsten for various applications (radiation shielding and
plasma-facing components). By collaborating with Cornwall
Resources, Oxford Sigma continues to grow a network of world class
projects, in safe jurisdictions, aiming to establish the supply of
tungsten, ensuring a secure sustainable tungsten supply for the
world's fusion reactors of the future.
"We look forward to working with CRL, and our other partners, in
connecting and building relationships with the fusion
community."
Commenting, Peter Wale, Executive Director of Strategic Minerals
and Director of CRL, said:
"We are pleased to be working with the Oxford Sigma team who
have a deep understanding of the fusion energy industry within the
United Kingdom and abroad. Oxford Sigma is working to develop a
long-term supply chain approach to sourcing tungsten for this key
developing future technology.
"This agreement highlights the high grade, JORC (2012)
compliant, tungsten resource at Redmoor. We believe Redmoor to be a
world class deposit that has the potential to contribute towards
the large quantities of tungsten necessary to advance the UK's
ambition to advance nuclear fusion technology into commercial
production in the coming decades.
"By working with Oxford Sigma, we intend to further highlight to
national government the importance of establishing domestic
tungsten mining to provide long-term security of supply for the
fusion community, and Redmoor's ability to help meet these
needs."
About Oxford Sigma
Oxford Sigma is a Fusion Technology company with a vision to
tackle energy security and climate change by accelerating the
commercialisation of fusion energy. Its mission is to deliver
materials technology, materials solutions, and fusion design
services. Oxford Sigma aims to produce advanced materials
technologies, agnostic to fusion approach, for the materials
ecosystem. Its fusion core materials are engineered to enable
longer term operations for fusion pilot plants, with the aim of
roll out to the first-of-a-kind commercial power stations. Oxford
Sigma is internationally recognised as a key fusion materials and
technological leader. The company operates in the United States,
United Kingdom, European Union, Canada, and Japan, with offices in
the UK and USA. Our roots and headquarters are in Oxford, UK.
Get in touch at info@oxfordsigma.com
About Cornwall Resources Limited
Cornwall Resources Limited ("CRL") is a wholly owned subsidiary
of Strategic Minerals PLC ("SML") (AIM: SML; USOTC: SMCDY) focussed
on advancing the high-grade, underground Redmoor
Tungsten-Tin-Copper Project, through a current relogging and
sampling campaign of historic drill core and continuing to progress
towards securing further significant funding, as well as exploring
its minerals rights licence area in east Cornwall, Southwest
England.
The Redmoor Project is situated within the historically
significant Tamar Valley Mining District, yet the sheeted vein
system ("SVS") forming the basis of CRL's inferred resource is
unmined. SML bought into CRL in 2016, and in 2019 completed the
purchase of the project. CRL completed a JORC-compliant Inferred
Mineral Resource Estimate ("MRE") for Redmoor using a comprehensive
archive of historical data and through the completion of two
exploration campaigns, in 2017 and 2018, totalling 32 boreholes for
14,000m of drilling. An updated Scoping Study, published in 2020
shows that Redmoor has potentially economic viability as a new,
underground mine.
Mineral Resource Estimate published February 2019, as summarised
below:
Cut-off (SnEq%) Tonnage WO(3) Sn Cu Sn Eq(1) WO(3)
(Mt) Eq
% % % % %
>0.45 <0.65 1.5 0.18 0.21 0.3 0.58 0.41
-------- ------ ----- ----- --------- ------
>0.65 10.2 0.62 0.16 0.53 1.26 0.88
-------- ------ ----- ----- --------- ------
Total Inferred
Resource 11.7 0.56 0.16 0.5 1.17 0.82
-------- ------ ----- ----- --------- ------
1 Equivalent metal calculation notes; Sn(Eq)% = Sn%*1 +
WO3%*1.43 + Cu%*0.40. Commodity price assumptions: WO3 US$
33,000/t, Sn US$ 22,000/t, Cu US$ 7,000/t. Recovery assumptions:
total WO3 recovery 72%, total Sn recovery 68% & total Cu
recovery 85% and payability assumptions of 81%, 90% and 90%
respectively
Subject to the completion of necessary funding, CRL has in place
permissions for drill programs, in the Target Tip Valley ("TTV"),
to test at depth previously reported high-grade auger and trenching
results (as reported 17 November 2021), as a possible western
extension of the current Redmoor resource, and for further
exploration of the Redmoor Tungsten-Tin-Copper resource. A General
Permitted Development Order application, for necessary drilling
consents, was approved by Cornwall Council for the TTV program and
a full Planning Permission has been granted by Cornwall Council for
future drilling at Redmoor.
For further information, please contact:
+61 (0) 414 727
Strategic Minerals plc 965
John Peters
Managing Director
Website: www.strategicminerals.net
Email: info@strategicminerals.net
Follow Strategic Minerals on:
Vox Markets: https://www.voxmarkets.co.uk/company/SML/
Twitter: @SML_Minerals
LinkedIn: https://www.linkedin.com/company/strategic-minerals-plc
+44 (0) 20 3470
SP Angel Corporate Finance LLP 0470
Nominated Adviser and Broker
Matthew Johnson
Charlie Bouverat
Notes to Editors
Strategic Minerals plc:
Strategic Minerals plc is an AIM-quoted, profitable operating
minerals company actively developing projects tailored to materials
expected to benefit from strong demand in the future. It has an
operation in the United States of America along with development
projects in the UK and Australia. The Company is focused on
utilising its operating cash flows, along with capital raisings, to
develop high quality projects aimed at supplying the metals and
minerals likely to be highly demanded in the future.
In September 2011, Strategic Minerals acquired the distribution
rights to the Cobre magnetite tailings dam project in New Mexico,
USA, a cash-generating asset, which it brought into production in
2012 and which continues to provide a revenue stream for the
Company. This operating revenue stream is utilised to cover company
overheads and invest in development projects aimed at supplying the
metals and minerals likely to be highly demanded in the future.
In May 2016, the Company entered into an agreement with New Age
Exploration Limited and, in February 2017, acquired 50% of the
Redmoor Tin/Tungsten project in Cornwall, UK. The bulk of the funds
from the Company's investment were utilised to complete a drilling
programme that year. The drilling programme resulted in a
significant upgrade of the resource. This was followed in 2018 with
a 12-hole 2018 drilling programme has now been completed and the
resource update that resulted was announced in February 2019. In
March 2019, the Company entered into arrangements to acquire the
balance of the Redmoor Tin/Tungsten project which was settled on 24
July 2019 by way of a vendor loan which was fully repaid on 26 June
2020.
In March 2018, the Company completed the acquisition of the
Leigh Creek Copper Mine situated in the copper rich belt of South
Australia and brought the project temporarily into production in
April 2019. In July 2021, the project was granted a conditional
approval by the South Australian Government for a Program for
Environmental Protection and Rehabilitation (PEPR) in relation to
mining of its Paltridge North deposit and processing at the
Mountain of Light installation. In early January 2022, an updated
PEPR, addressing the conditions associated with the July 2021
approval, was lodged.
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