REG - Cornish Metals Inc. - NEAR MINE EXPLORATION TARGET AT SOUTH CROFTY

Cornish MetalsAnnouncement

14/11/2024 07:00

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RNS Number : 1670M  Cornish Metals Inc.  14 November 2024

 

CORNISH METALS PRODUCES A NEAR MINE EXPLORATION TARGET AT SOUTH CROFTY

 

Vancouver, November 13, 2024

Cornish Metals Inc. (AIM/TSX-V: CUSN) ("Cornish Metals" or the "Company"), a
mineral exploration and development company focused on the advancement and
restart of its 100% owned and permitted South Crofty high-grade tin project in
Cornwall, United Kingdom, is pleased to announce that it has developed a near
mine Exploration Target at South Crofty.

The near mine Exploration Target quantity and grade are conceptual in nature
and currently there is insufficient data to classify this as a Mineral
Resource. However, Cornish Metals believes the Exploration Target demonstrates
the potential to define additional mineralisation, which could expand the
current Mineral Resource at the project.

Highlights

·    South Crofty is one of the highest-grade tin resources in the world
with a tin grade of 1.50% in the Indicated category

·    The near mine Exploration Target points to potential additional
mineralisation upside of 6Mt to 13Mt, at a tin grade of 0.5% to 1.8%, above
the current South Crofty Mineral Resource in the Lower Mine area

·    South Crofty mine has consistently increased its Mineral Resource in
line with production each year for over the last 20 years when in operation

·    Potential to define additional mineralisation, which could expand the
current Mineral Resource at the project

·    Further growth opportunities from longer term exploration activities
both within the South Crofty mining permission area and within Cornish Metals'
extensive mineral rights holdings in Cornwall providing for a
multi-generational asset

Don Turvey, CEO and Director of Cornish Metals, stated: "This Exploration
Target supports our view that there is a lot more tin at South Crofty waiting
to be discovered. South Crofty is a generational asset with a long history of
Mineral Resource discovery and conversion, and we expect this trend to
continue after the mine restarts production. The PEA results represent a
strong foundation for advancing South Crofty to production, but it is only the
starting point, and this Exploration Target illustrates the potential for
immense upside."

The assessment of the near mine Exploration Target is based on the current
understanding of the geological controls on mineralisation at the South Crofty
project and the target was generated by extrapolating known structures along
strike and down dip, with tonnages estimated by applying assumed minimum and
maximum thicknesses.

 South Crofty near mine Exploration Target
              Mass   Grade

              (Mt)   (% Sn)
 Upper limit  13     1.8
 Lower limit  6      0.5

 

   Notes:

1.   The near mine Exploration Target is reported exclusive of the current
South Crofty Mineral Resource.

2.   No economic parameters, mining dilution or recovery factors have been
applied to the assessments of tonnes and average grade.

3.   The potential quantity and average grade of the near mine Exploration
Target is conceptual in nature and is an approximation. There is insufficient
data to estimate a Mineral Resource in the area considered and it is uncertain
if further exploration will result in the definition of a Mineral Resource.

The near mine Exploration Target was primarily based on extrapolation of
known, previously mined structures beyond the limits of the current South
Crofty Mineral Resource. The mineralisation around South Crofty remains open
along strike and down dip providing further potential beyond the near mine
Exploration Target. The Exploration Target does not consider the wider
opportunities within the South Crofty mining permission area, which also shows
significant potential and includes the Wide Formation exploration project, or
within the wider region in Cornwall where Cornish Metals has extensive mineral
rights holdings.

Figure 1: Plan view of existing South Crofty Mineral Resource envelopes
(orange), near mine Exploration Targets (light blue) and wider mineralised and
mined structures with exploration areas (dark blue, pink) identified within
the South Crofty underground permission boundary.

Historic production at South Crofty demonstrates the consistent discovery of
new mineralisation and subsequent conversion to Reserves (Figure 2). Cornish
Metals plans to test the near mine Exploration Target systematically alongside
initial production at South Crofty, targeting an increase of the Mineral
Resource Estimate above that depleted by production each year. This is
expected to be carried out through targeted development and exploration
drilling programmes aimed at extending the existing Mineral Resource both
along strike and down dip during approximately the first five years of
operation.

Figure 2: South Crofty cumulative metal mined, and metal added to Reserve -
1974 to 1997.

                 Note: Reserves estimated based on
methodologies and classifications used by South Crofty in the period.

 

GEOLOGY AND MINERALISATION

The geology of Cornwall is dominated by granitic intrusions that are part of
the Permian Cornubian batholith, and Devonian metasedimentary and
metavolcanics, known locally as "Killas", that form the metamorphic aureole
and host rocks of the intrusions. The sedimentary and volcanic package was
deformed during the Variscan Orogeny where crustal thickening, followed by
subsequent lithospheric extension and crustal subsidence, resulted in anatexis
and formation of the Cornubian batholith.

The South Crofty project area lies on the north side of the Permian Carn Brea
Granite. The project area is underlain by a series of metasedimentary and
metavolcanic rocks and associated hornfels and skarns, that occur in close
proximity to the granite contact. At depth, the granite underlies the whole
project area dipping towards the north west.

Mineralisation occurs in steeply dipping vein-type structures or "lodes" that
generally strike east-northeast, occurring in both the granite and the
overlying Killas. Within the granite, the principal mineral of economic
significance is cassiterite. The project is split by the Great Crosscourse a
late-stage fault which crosscuts and offsets the mineralised structures. The
Great Crosscourse transects the project area dividing the mine into two areas,
east and west.

The area is host to numerous historic mines which initially exploited copper
and subsequently deeper tin. Numerous opportunities exist to test for the
continuation of tin below historic copper mines. This precedent is evident
both in the South Crofty workings and also at the Dolcoath mine which was
continuously mined through the copper mineralisation and into tin
mineralisation at depth, demonstrating the vertical zonation.

TECHNICAL INFORMATION

The near mine Exploration Target has been based primarily on extrapolation of
known, previously mined structures beyond the data limits of the current South
Crofty Mineral Resource. Several smaller structures identified within the
historical database that show potential for defining additional mineralisation
through further exploration have also been included. An analogue for
continuity of mineralised structures is the Dolcoath mine, which sits directly
to the south of South Crofty and was mined continuously from surface to over
800m vertical depth with a strike length that is traceable over 2.1km.

Where structures have been extrapolated beyond known data points, they have
been extended half the known strike length of the defined Mineral Resource
envelope and extrapolated a further two mine levels (approximately 75m) down
dip (Figure 3). Where structures have data which could be interpreted as
belonging to that structure (Figure 4), or where there is an analogy from an
existing structure (for example historical workings above), extrapolations
have been expanded to the same extent (Figure 5). In all cases nothing has
been extrapolated beyond the mining permission boundary. This approach assumes
the continuity of structures beyond the current known data points.

Tonnage assumptions are based on the projected areas of the extrapolated
structures. The upper tonnage target is based on the mean width of the known
Mineral Resource structure and the lower tonnage target is based on the lower
tenth percentile width of the structure. This method acknowledges that
although the mineralised structures at South Crofty are extremely persistent,
there is significant variability in the width. With the potential volume
defined, the mean density of mineralisation at South Crofty of 2.77t/m(3) was
applied to give an assessment of tonnage.

Average tin grade assumptions were based on the current South Crofty Mineral
Resource sample dataset. A range was derived which represents the likely
average grade of the global near-mine Exploration Target and equates to the
lower 40(th) and upper 75(th) percentiles of the existing Mineral Resource
sample set. This is believed to give the best indication of expected average
grade based on the existing precedent.

 

Figure 3: Long section view looking north showing the existing Dolcoath South
Mineral Resource structure (orange) and the Exploration Target extrapolation
(blue).

Figure 4: Long section view looking north showing the existing No. 8a Mineral
Resource structure (orange) and the Exploration Target extrapolation (blue).

 

 

Figure 5: Long section view looking north showing the existing Roskear B-D
Mineral Resource (orange) and the Exploration Target (blue), which has been
extrapolated to the length of the historic overlying North Roskear and South
Roskear mines.

This Exploration Target was reviewed and approved by Mr. Nicholas Szebor
(MCSM, BSc, MSc, CGeol, EurGeol, FGS), Regional Manager and Principal
Geologist at AMC Consultants (UK) Limited, a Qualified Person under National
Instrument 43-101 (NI 43-101) and AIM Rules for Companies and a Competent
Person as defined under the JORC Code (2012). Mr. Szebor has reviewed the
technical content of this news release as it relates to the Exploration Target
and has approved its dissemination.

This news release has been reviewed and approved by Mr. Owen Mihalop, MCSM,
BSc (Hons), MSc, FGS, MIMMM, CEng, Chief Operating Officer for Cornish Metals
Inc. who is the designated Qualified Person under NI 43-101 and the AIM Rules
for Companies and a Competent Person as defined under the JORC Code (2012).
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.

ABOUT CORNISH METALS

Cornish Metals is a dual-listed mineral exploration and development company
(AIM and TSX-V: CUSN) that is advancing the South Crofty tin project towards
production. South Crofty:

·    Is a historical, high-grade, underground tin mine located in
Cornwall, United Kingdom and benefits from existing mine infrastructure
including multiple shafts that can be used for future operations;

·    Is fully permitted to commence underground mining (valid to 2071),
construct new processing facilities and for all necessary site infrastructure;

·    Has a 2024 Preliminary Economic Assessment that validates the
Project's potential (see news release dated April 30, 2024
(https://investors.cornishmetals.com/announcements/6315981) and the Technical
Report entitled "South Crofty PEA
(https://cornishmetals.com/site/assets/files/4962/0423037_south_crofty_pea_-_24_may_2024_sedar.pdf)
"):

o  US$201 million after-tax NPV(8%) and 29.8% IRR

o  3-year after-tax payback

o  4,700 tonnes average annual tin production in years two through six

o  Life of mine all-in sustaining cost of US$13,660 /tonne of payable tin

o  Total after-tax cash flow of US$626 million from start of production

·    Would be the only primary producer of tin in Europe or North America.
Tin is a Critical Mineral as defined by the UK, American, and Canadian
governments as it is used in almost all electronic devices and electrical
infrastructure. Approximately two-thirds of the tin mined today comes from
China, Myanmar and Indonesia;

·    Benefits from strong local community, regional and national
government support with a growing team of skilled people, local to Cornwall,
and could generate up to 320 direct jobs.

The 2024 Preliminary Economic Assessment for South Crofty is preliminary in
nature and includes Inferred Mineral Resources that are considered too
speculative geologically to have the economic considerations applied to them
that would enable them to be categorised as Mineral Reserves. There is no
certainty that the 2024 Preliminary Economic Assessment will be realised.
Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability.

ON BEHALF OF THE BOARD OF DIRECTORS

 

"Don Turvey"

Don Turvey

 

Engage with us directly at our investor hub. Sign up at:
https://investors.cornishmetals.com/link/lPdoKr
(https://investors.cornishmetals.com/link/lPdoKr)

 

For additional information please contact:

 

 Cornish Metals                                                         Fawzi Hanano       investors@cornishmetals.com (mailto:investors@cornishmetals.com)

                                                                        Irene Dorsman      info@cornishmetals.com (mailto:info@cornishmetals.com)
                                                                                           Tel: +1 (604) 200 6664

 SP Angel Corporate Finance LLP                                         Richard Morrison   Tel: +44 203 470 0470

 (Nominated Adviser & Joint Broker)                                     Charlie Bouverat

                                                                        Grant Barker

 Cavendish Capital Markets Limited                                      Derrick Lee        Tel: +44 131 220 6939

 (Joint Broker)                                                         Neil McDonald

 Hannam & Partners                                                      Matthew Hasson     cornish@hannam.partners (mailto:cornish@hannam.partners)

 (Financial Adviser)                                                    Andrew Chubb       Tel: +44 207 907 8500

                                                                        Jay Ashfield

 BlytheRay                                                              Tim Blythe         cornishmetals@blytheray.com (mailto:cornishmetals@blytheray.com)

 (Financial PR)                                                         Megan Ray          Tel: +44 207 138 3204

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 certain "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking statements").
Forward-looking statements include predictions, projections, outlook,
guidance, estimates and forecasts and other statements regarding future plans
and operations, the realisation, cost, timing and extent of mineral resource
or mineral reserve estimates, estimation of commodity prices, currency
exchange rate fluctuations, estimated future exploration expenditures, costs
and timing of the development of new deposits, success of exploration
activities, permitting time lines, requirements for additional capital and the
Company's ability to obtain financing when required and on terms acceptable to
the Company, future or estimated mine life  and other activities or
achievements of Cornish Metals, including but not limited to: the expected use
of proceeds from the secured credit facility with Vision Blue; the balance of
the cash consideration due to Cornish in respect of the sale of the Mactung
and Cantung royalty interests; mineralisation at South Crofty, mine dewatering
and construction requirements; the development, operational and economic
results of the preliminary economic assessment, including cash flows, capital
expenditures, development costs, extraction rates, recovery rates, mining cost
estimates and returns; estimation of mineral resources; statements about the
estimate of mineral resources and production of minerals; magnitude or quality
of mineral deposits; anticipated advancement of the South Crofty project mine
plan; exploration potential and project growth opportunities for the South
Crofty tin project and other Cornwall mineral properties, the Company's
ability to evaluate and develop the South Crofty tin project and other
Cornwall mineral properties, strategic vision of Cornish Metals and
expectations regarding the South Crofty mine, timing and results of projects
mentioned. Forward-looking statements are often, but not always, identified by
the use of words such as "seek", "anticipate", "believe", "plan", "estimate",
"forecast", "expect", "potential", "project", "target", "schedule", "budget"
and "intend" and statements that an event or result "may", "will", "should",
"could", "would" or "might" occur or be achieved and other similar expressions
and includes the negatives thereof. All statements other than statements of
historical fact included in this news release, are forward-looking statements
that involve various risks and uncertainties and there can be no assurance
that such statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such statements.

Forward-looking statements 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 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 any future studies; 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. The list is not exhaustive of the factors that may
affect Cornish's forward-looking statements.

Cornish Metals' forward-looking statements are based on the opinions and
estimates of management and reflect their current expectations regarding
future events and operating performance and speak only as of the date such
statements are made. Although the Company has attempted to identify important
factors that could cause actual actions, events or results to differ from
those described in forward- looking statements, there may be other factors
that cause such actions, events or results to differ materially from those
anticipated. There can be no assurance that forward-looking statements will
prove to be accurate and accordingly readers are cautioned not to place undue
reliance on forward-looking statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Cornish Metals does not assume
any obligation to update forward-looking statements if circumstances or
management's beliefs, expectations or opinions should change other than as
required by applicable law.

Caution regarding non-IFRS measures

This news release contains certain terms or performance measures commonly used
in the mining industry that are not defined under International Financial
Reporting Standards ("IFRS"), including "all-in sustaining costs". Non-IFRS
measures do not have any standardized meaning prescribed under IFRS, and
therefore they may not be comparable to similar measures employed by other
companies. The data presented is intended to provide additional information
and should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS and should be read in conjunction
with Cornish Metals' consolidated financial statements and Management
Discussion and Analysis, available on its website and on SEDAR+ at
www.sedarplus.ca.

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.

Appendix

"cassiterite" means a tin oxide mineral which is the principal source for tin
metal

"Exploration Target" is a statement or estimate of the exploration potential
of a mineral deposit in a defined geological setting where the statement or
estimate, quoted as a range of tonnes and a range of grade (or quality)
relates to mineralisation for which there has been insufficient exploration to
estimate a Mineral Resource. Any such information must be expressed so that it
cannot be misrepresented or misconstrued as an estimate of a Mineral Resource
or Ore Reserve. There has been insufficient exploration to estimate a Mineral
Resource and that it is uncertain if further exploration will result in the
estimation of a Mineral Resource.

"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.

"Lodes" means a vein of metal ore in the earth

"MRE" means Mineral Resource Estimate

"km" means kilometres

"kt" means thousand tonnes

"m" means metres

"Mt" means million tonnes

"NI 43-101" means National Instrument 43-101 - Standards of Disclosure for
Mineral Projects issued by the Canadian Securities Administrators, which
provides standards of disclosure of scientific and technical information
regarding mineral projects

"Sn" means Tin

"t" means tonnes

"t/m(3)" means tonnes per cubic metre

"tourmaline" means the crystalline silicate mineral group that occurs
as prismatic crystals in granitic and other rocks

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