LONDON (ShareCast) - (Sharecast News) - Battery minerals company Strategic Minerals announced on Tuesday that its wholly-owned subsidiary Cornwall Resources (CRL) has received a positive updated mining scoping study and financial assessment from its consultants Wardell Armstrong International (WAI).
The AIM-traded firm reported a "significant" uplift to the project's economic results when compared with 2019 results, with the internal rate of return rising to 29% from 19%, and the net present value standing at $128m with an 8% discount, using consistent metal price assumptions.

It also reported additional "robust" results when using "more conservative" metal pricing, with the post-tax internal rate of return standing at 23.4% with a post-tax net present value of $91m.

Strategic Minerals said WAI had confirmed that changes to the proposed mining schedule could bring forward high-grade production from mineralisation defined during its most recent drill programme and mineral resource estimate.

An indicative production rate was proposed at 600,000 tonnes per annum, with a potential mine life of at least 10 years based on feed of 7.2 million tonnes.

WAI's updated mining scoping study demonstrated the potential for the Redmoor to be a "significant deposit" when it comes to grades and contained metal, Strategic Minerals said.

It added that a material upside existed with a high grade exploration target of four million to eight million tonnes, not yet included in its analysis.

NRG Capital was working with the company to develop options to advance the Redmoor tungsten and tin project, the board said.

"Wardell Armstrong's updated independent financial model and mining study clearly validate the resilience of the project to variations in metal price, as well as illustrating the improved economics associated with mining high grade feed early in the project life," said executive director Peter Wale.

"These results spotlight Redmoor's potential as a world-class tungsten and tin mine, delivering attractive returns on investment.

"The company looks forward to working with NRG Capital to develop options for the development of the Redmoor tungsten and tin project that deliver value for shareholders."

At 1303 BST, shares in Strategic Minerals were down 4.71% at 0.4p.

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