Cornish Metals Inc will refurbish New Cooks Kitchen shaft ahead of schedule to ensure safety and allow larger equipment to access South Crofty tin mine at an earlier stage.
FUNDING
The company said it would reallocate proceeds from the May 2022 fundraising for the work.
The rate of mine dewatering will also be reduced, with the current level maintained, to allow concurrent progress of shaft refurbishment and dewatering.
Cornish Metals added that rephasing shaft refurbishment would “significantly improve the functionality” of the shaft, ensuring the highest health and safety standards as access is regained to the underground mine workings.
The shaft refurbishment and mine dewatering are now expected to complete by Q3 2025.
Savings of approximately £4 million from reducing the rate of dewatering will cover the cost of shaft refurbishment during 2024.
The company still expects to complete all aspects of the feasibility study, except underground drilling, during H1 2024.
A preliminary economic assessment (PEA) for South Crofty remains on schedule to be published in Q2 2024.
The outcome of the PEA will further guide outstanding work programmes, the timing for completion of the feasibility study, and provide revised estimates of funding needed to achieve first tin production by the end of 2026.
Cornish Metals said it had funds for the remainder of 2024 and anticipated no impact from the new schedule on the overall cost of re-opening South Crofty.
Chief executive and director Richard Williams added: “Cornish Metals is committed to safe, efficient and cost-effective work practices and has, accordingly, brought forward the refurbishment of NCK shaft.
“This is a key milestone for the project and demonstrates the confidence both we as a company and our largest shareholders have in the future of South Crofty.
“Importantly, management believes the project remains on track for production by the end of 2026.”
The company’s controlling shareholder with a £40.5m investment is Vision Blue Resources Ltd.