South Crofty Project


“South Crofty is not just an old operation, but a new project leveraged with existing infrastructure” 

(Owen Mihalop - Cornish Metals' COO)

Cornish Metals Exploration’s 100% owned South Crofty project is located in the Central Mining District of Cornwall, in the towns of Pool and Camborne, South West England.

Tin mining in this region dates back to 2,300 B.C. Large-scale production at South Crofty first started in the mid-1600s (the first documented production dated in 1592). The mine has been in operation intermittently since then, with the last closure in 1998 coming after a prolonged period of depressed tin prices. Historical production between 1700 to 1998 totaled over 450,000 tonnes of tin from the Central Mining District.

In March 2016, Cornish Metals entered into an agreement with Galena Special Situations Fund and Tin Shield Production Inc. to acquire a 100% interest in Western United Mines Ltd. (“WUML”) and Cornish Minerals Limited (Bermuda) (the "Companies"), which owned the South Crofty tin project plus additional mineral rights over a further 7,500 hecatres located in various parts of Cornwall.. The closing of the acquisition was announced on July 12, 2016. 

The South Crofty project is fully permitted, having underground permission (mining licence) valid until 2071, planning permission to construct a new process plant and a permit from the Environment Agency to dewater the mine. Cornish Metals plans to complete a feasibility study and to bring the project to a production decision.

The underground permission area covers 1,490 hectares and includes 26 former producing mines. Current infrastructure on the property includes four usable vertical shafts and a 300-meter decline. Regional infrastructure includes excellent access to power, roads and rail. The process plant site is adjacent to the railway line and accessible grid power crosses the property.South Crofty mineralization occurs in laterally extensive lode structures, with some over 4 kilometers long, and extending to a vertical depth of at least 1,000 meters.

2016 NI 43-101 Mineral Resource Estimate

The 2016 Mineral Resource Estimate for South Crofty is split into two sections: the Lower Mine with tin only resources and the Upper Mine with polymetallic resources including copper and zinc.

  1. Lower Mine tin-only resource;
     
      LOWER MINE MINERAL RESOURCE ESTIMATE AT 0.60% SN CUT-OFF
    TONNES (‘000S) SN GRADE CONTAINED SN (TONNES)
    Indicated Resource 1,660 1.81% 30,000
    Inferred Resource 738 1.91% 14,100
  1. Upper Mine polymetallic resource, comprising tin, copper and zinc;
     
    UPPER MINE MINERAL RESOURCE ESTIMATE AT 0.60% SNEQ CUT-OFF (1-12)
      TONNES (K) SN % CU % ZN % SNEQ %
    Indicated Resource 257 0.70 0.79 0.58 0.99
    Inferred Resource 464 0.67 0.62 0.63 0.91

The full 2016 NI 43-101 report can be found here.

2017 Preliminary Economic Assessment

Cornish Metals published a N1 43-101 Preliminary Economic Assessment ("PEA") on South Crofty in February 2017. Highlights from the PEA include:

  • Base Case assumptions US$10/lb tin price / 5% Discount Rate
  • Pre-tax Net Present Value $165.9 million
  • After-tax Net Present Value $130.5 million
  • Internal Rate of Return 23.4%
  • Pre-production CAPEX $118.7 million
  • Payback period of 3.8 years
  • Life of Mine (LOM) sustaining CAPEX $83.8 million
  • Mine Life of 8 Years
  • Average LOM cash cost $3.36/lb tin equivalent
  • Average LOM all-in sustaining cash cost $4.44/lb tin equivalent
  • Mineralized material mined 2.575 million
  • Average grade 1.55% tin equivalent

The full PEA report can be found here.

June 2020 Drill Programme

In June 2020, Cornish Metals ran a drill programme designed to demonstrate the ability to infill drill the current resource from surface, to intersect multiple lodes from single drill holes and to show the potential exists to materially increase the current resource. This as a means to undertake resource definition drilling and a path to completion of a feasibility study.The results confirmed the high-grade nature and persistence of the know mineralised structures within South Crofty (hole SDD20-001B intersected 2.60m grading 10.33% tin between 974.20m and 976.80m, including 0.46m grading 39.60% tin from 975.77m). In addition, all drill intercepts reported lie outside the current NI 43-101 mineral resource and 5 new mineralised lodes were discovered, between, and adjacent to, historically mined lodes The initial programme comprised up to 2,000 metres of diamond core drilling from a single surface parent hole and up to three daughter holes that were wedged-off the parent hole.  

Highlights from South Crofty SDD20 Drilling Program

Reference

Lode Name

From

To

Width

True Width (m)

Grade

Grade

Grade

Hole ID

(m)

(m)

(m)

(Sn %)

(Cu%)

(W %)

A

South Tincroft

376.55

378.77

2.22

1.15

0.77

2.69

1.73

SDD20-001

including

378.04

378.77

0.73

0.38

1.58

5.16

3.43

B

Tincroft

470.35

472.52

2.17

1.66

1.34

 

 

including

471.79

472.52

0.73

0.56

2.5

 

 

C

Intermediate

620.6

623.26

2.66

1.85

2.19

 

 

D

No. 1

788.87

789.89

1.02

0.72

1.87

 

 

E

No. 1 FW

810.59

811.15

0.56

0.4

1.08

 

 

F

New Wolfram Lode

949.58

950.68

1.38

0.76

 

 

0.26

SDD20-001A

Including

950.34

950.68

0.34

0.19

 

 

1.07

G

No. 4

976.52

977.82

1.3

1.27

0.39

 

 

Including

976.52

976.87

0.35

0.34

1.06

 

 

H

No. 8

1,028.76

1,029.96

1.2

1.19

0.92

 

 

Including

1,029.10

1,029.48

0.38

0.38

2.77

 

 

I

No. 4

974.2

976.8

2.6

2.6

10.33

 

 

SDD20-001B

Including

975.38

976.23

0.85

0.85

30.35

 

 

J

No.4 Footwall

993.8

996.06

2.26

2.25

1.26

 

 

K

No. 8

1,034.38

1,035.59

1.21

1.16

1.78

 

 

Including

1,034.38

1,035.21

0.83

0.8

2.48

 

 

South Tincroft

South Tincroft SDD20-001

SDD20 cross section

SDD20 - Cross Section

Lode no. 4 cassitertite mineralisation SDD20-001

No. 4 Cassitertite Mineralisation SDD20-001b

SDD20-001 no. 4 core photo

SDD20-001b No. 4 Core Photo

Osisko Royalty Purchase and Mine Dewatering

On January 29th, 2018, we closed the agreement with our largest shareholder, Osisko Gold Royalties, to sell Osisko a 1.5% NSR royalty on the South Crofty project for C$7,170,000. Proceeds from the royalty sale are being used to construct the water treatment plant. Details of the $7.17 million note financing and grant of royalty option can be found here.

 

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