Cornwall Resources Ltd has received a positive updated mining scoping study and financial assessment on its planned tin-tungsten Redmoor project in the south east of Cornwall.
MINE LIFE
The company, 100% owned by Strategic Minerals, commissioned mining consultants Wardell Armstrong International for the report.
Results showed the project now has an initial rate of return (IRR) of 29% (2019: 19%) and $128 million net present value 8% (NPV) has increased by around 35% to $128m (previously $94m) of 8% using consistent metal price assumptions.
More conservative prices are $300/metric ton unit tungsten trioxide (WO3), $20,000/tonne tin and $7,000/t copper reflective of the current market. The economic outcome of the project continues to be “robust” with a post-tax IRR and NPV8% of 23% and $91m respectively.
Wardell Armstrong added that the indicative production rate was 600k tonnes per annum, with a potential mine life of more than 10 years based on 7.2 million tonnes (Mt) of feed.
POTENTIAL
Strategic Minerals said that the scoping study demonstrated the potential for Redmoor to be a “significant deposit in respect of grades and contained metal.”
The orebody remains open at depth and to the west, where a high-grade exploration target of 4-8Mt is indicated but was not included in Wardell Armstrong’s study.
NRG Capital is working with the Strategic Minerals on options to advance exploration.
Executive director of Strategic Minerals and director of CRL, Peter Wale, 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.
“These results spotlight Redmoor’s potential as a world-class tungsten and tin mine, delivering attractive returns on investment.”
The Redmoor project lies between the village of Kelly Bray and the town of Callington in southeast Cornwall, approximately 25km by road from Plymouth, in the Cornish tin-tungsten-copper mining district.