LONDON (ShareCast) - (Sharecast News) - Producing mineral company Strategic Minerals updated the market on its interest in the Redmoor tin tungsten project in Cornwall on Wednesday, reporting that its joint venture partner New Age Exploration (NAE) had now funded its 50% of the Phase 1 development costs.
The AIM-traded firm said that as such, its previous underwriting of all of Phase 1 funding had been cancelled, reducing its current commitment by half to £0.33m, which it had already funded.

It said Phase 1 of the 2018 drilling programme had now started, and was aimed at extending the Redmoor High Grade Inferred Resource within the broader sheeted vein system.

Two holes had been completed of the seven-hole programme for 4,000m, with two further holes underway.

It reported "encouraging mineralisation" intersected in both completed holes, with assay results expected in September.

Both drilling rigs were said to be performing "well", with Phase 1 drilling expected to be completed in early October, slightly ahead of schedule.

Results from the full Phase 1 programme were expected to be available in November.

A cash payment of £0.1m, net of fees, was received from the UK Government for research and development tax relief for the years ending June 2016 and June 2017, the firm added.

A further research and development claim for the year ending June 2018 would be finalised and submitted this year.

In September, a decision by the joint venture partners SML and NAE was expected to be made on drilling Phase 2 of the 2018 programme - a further eight holes for 3,500m.

The board said that would be aimed at further extending the Redmoor high-grade resource, and increasing the level of confidence of a "significant" part of the resource to an indicated mineral resource classification.

"I am extremely pleased with the steady progress being made at Redmoor," said Strategic managing director John Peters.

"The preliminary results from the first two holes, the funding from our joint venture partner and the receipt of research and development tax relief all bode well for the future of the project."

Peters said the 2018 drilling programme was designed with the expectation of delineating a sufficient resource to justify proceeding to a pre-feasibility study in 2019.

"While the board and management consider that the Redmoor project represents significant value, it believes that the provision of the pre-feasibility study will provide the necessary basis for the market to appropriately value this asset.

"The company looks forward to updating the market on progress at Redmoor throughout the rest of the year."

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