Strategic Minerals confirms first sale of copper cement from Leigh Creek

The AIM-traded firm said sale of the copper had commenced with an initial shipment of give tonnes of copper cement, containing about 70% copper.

Production from the re-activated heap leach pads was continuing in line with management's expectations, the board said, adding that total production from the existing heap leach pads was forecast to be in the range of 150 tonnes to 180 tonnes of copper in cement.

An offtake agreement was in place with Adchem on “attractive” commercial terms for all expected production.

“This first sale of high grade copper concentrate, in the form of cement, firmly establishes LCCM as SML's second cash generating project,” said Strategic Minerals managing director John Peters.

“The initial sale, whilst relatively small, demonstrates the board's commitment to test all aspects of the LCCM operation meticulously prior to launching a full scale re-start of operations.

“The current re-start activities have provided the management team with valuable insight into operational techniques at LCCM and will form the blueprint for the larger production activities at Paltridge North and Rosmann East.”

Peters said those were currently the focus of a feasibility study which was due for completion in the second half of 2019.

“Full operational production is scheduled for commencement late 2019 [or] early in 2020.”