Cornish Metals takes wraps off updated mineral resource estimate

Cornish Metals unveiled an updated mineral resource estimate (MRE) for its flagship South Crofty Tin Project in Cornwall on Thursday.

The AIM-traded firm said the estimate, centred on the ‘Lower Mine’ tin-only project segment, had undergone a comprehensive review.

It said the assessment involved further digitalisation and modelling of past data.

The ‘Upper Mine’ polymetallic area's estimates were also provided based on prevailing metal prices.

Assay results from recent drilling sessions on existing major structures like No.4, No.8, Roskear, and North Pool Zone, carried out for metallurgical test-work, were incorporated into the updated estimate.

Cornish Metals reported a significant increase from the 2021 mineral resource estimate, with a 39% rise in tonnage and a 31.6% hike in contained tin in the indicated category.

The inferred category also displayed robust growth, with a 35.6% surge in tonnage and a 15.5% jump in contained tin compared to the 2021 estimate.

It said the estimate was grounded on a 0.6% tin cut-off grade, consistent with the parameters used in the prior year.

Most of the newly reported resources were located in the central region of the mine, notably in No. 1, No. 2, No. 3, Main, Intermediate, North, and Great Lodes.

The discovery, Cornish Metals said, was made possible by the digitalisation and modelling of historical data.

It added that the main lode structures, which form the core of the mineral resource, remained accessible both along the strike and at depth.

An updated technical report, overseen by AMC, was expected to be submitted to SEDAR within the next 45 days.

“This is another positive development for South Crofty as we advance the project through to delivery of a feasibility study by the end of 2024 and continue to demonstrate the potential to increase the project's mineral resource and mine life,” said chief executive officer and director Richard Williams.

“The updated mineral resource estimate will be incorporated into the feasibility study mine plan scheduled for release before the end of 2024.”

At 1155 BST, shares in Cornish Metals were up 2.83% at 12.73p.

Reporting by Josh White for Sharecast.com.