CORNISH METALS TO BRING
FORWARD REFURBISHMENT OF NEW COOK'S KITCHEN SHAFT
Vancouver, March 3, 2024
Cornish Metals Inc. (AIM/TSX-V: CUSN)
("Cornish Metals" or the "Company"), a mineral exploration and
development company focused on advancing the South Crofty tin
project ("South Crofty" or the "Project") located in Cornwall,
United Kingdom, to a construction decision, reports that, after
assessment of the condition of the shaft timbers in New Cooks
Kitchen ("NCK") shaft, it has decided to commence refurbishment of
the shaft ahead of schedule.
Accordingly, and further to the
announcement made by the Company on 13 December 2023, the proceeds
raised from the offering completed in May 2022 will be re-allocated
to accommodate the refurbishment of the NCK shaft, details of which
are set out below.
Key
Points:
· Rephasing
shaft refurbishment will significantly improve the functionality of
NCK shaft, enable larger equipment to access the mine at an earlier
stage in its re-development and, most importantly, ensure that the
Company continues to work to the highest health & safety
standards as we re-gain access to the underground mine
workings;
· The
rate of mine dewatering has been reduced, with the water level
being maintained, to allow shaft refurbishment and dewatering to
proceed concurrently;
·
Shaft refurbishment and mine dewatering are now expected to
complete by Q3 2025;
· The
cost saving of approximately £4 million from reducing the rate of
dewatering will cover the cost of shaft refurbishment during
2024;
· All
aspects of the ongoing Feasibility Study, except underground
drilling, are expected to be completed in H1 2024, as previously
stated;
· A
Preliminary Economic Assessment ("PEA") for South Crofty remains on
schedule to be published in Q2 2024;
· The
outcome of the PEA will provide further guidance of the outstanding
work programmes, and for the timing for the completion of the
Feasibility Study, as well as providing updated estimates of the
funding requirements to achieve first tin production by the end of
2026;
· The
Company is funded for the remainder of 2024 and there is no
anticipated impact on the overall cost of re-opening South Crofty
arising from this rephasing.
Richard Williams, CEO and Director of Cornish Metals,
stated: "Cornish Metals is committed
to safe, efficient and cost-effective work practises 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."
ABOUT CORNISH METALS
Cornish Metals is a dual-listed
company (AIM and TSX-V: CUSN) focused on advancing the South Crofty
high-grade, underground tin Project through to a construction
decision, as well as exploring its additional mineral rights, all
located in Cornwall, United Kingdom.
·
South Crofty is a historical, high-grade, underground tin
mine that started production in 1592 and continued operating until
1998 following over 400 years of continuous production;
· The
Project possesses Planning Permission for underground mining (valid
to 2071), to construct new processing facilities and all necessary
site infrastructure, and an Environmental Permit to dewater the
mine;
·
South Crofty has the 4th highest grade tin Mineral
Resource globally and benefits from existing mine infrastructure
including multiple shafts that can be used for future
operations;
· Tin
is a Critical Mineral as defined by the UK, USA, and Canadian
governments, with approximately two-thirds of the tin mined today
coming from China, Myanmar and Indonesia;
·
There is no primary tin production in Europe or North
America;
· Tin
connects almost all electronic and electrical infrastructure,
making it critical to the energy transition - responsible sourcing
of critical minerals and security of supply are key factors in the
energy transition and technology growth;
·
South Crofty benefits from strong local community and
regional and national government support.
·
Cornish Metals has a growing team of skilled people, local to
Cornwall, and the Project could generate 250 - 300 direct
jobs.
An updated Mineral Resource was
completed in September 2023 with a 39% increase in tonnes and 32%
increase in contained tin in the Indicated category for the Lower
Mine (see news release dated
September 13, 2023)
as summarised below:
South Crofty Summary (JORC
2012) Mineral Resource Estimate
|
Area
|
Classification
|
Mass
(kt)
|
Grade
|
Contained Tin
/
Tin
Equivalent
(kt)
|
Lower
Mine
|
Indicated
|
2,896
|
1.50%
Sn
|
43.6
|
Inferred
|
2,626
|
1.42%
Sn
|
37.4
|
Upper
Mine
|
Indicated
|
260
|
0.99%
SnEq
|
2.6
|
Inferred
|
465
|
0.91%
SnEq
|
4.2
|
The Mineral Resource Estimate for
South Crofty is available in a report titled
"South
Crofty Tin Project - Mineral Resource Update NI 43-101 Technical
Report", dated October 27, 2023,
co-authored by Mr. N. Szebor (MCSM, MSc,
BSc, CGeol, EurGeol, FGS) and Mr. R. Chesher (FAusIMM(CP), RPEQ,
MTMS) of AMC Consultants, and can be accessed
through the above link and on the Company's SEDAR+
page.
TECHNICAL INFORMATION
The technical information in this
news release has been compiled by Mr. Owen Mihalop who has reviewed
and takes responsibility for the data and geological
interpretation. Mr. Owen Mihalop (MCSM, BSc (Hons), MSc, FGS,
MIMMM, CEng) is Chief Operating Officer for Cornish Metals Inc. and
has sufficient experience relevant to the style of mineralisation
and type of deposit under consideration and to the activity which
he is undertaking to qualify as a Competent Person as defined under
the JORC Code (2012) and as a Qualified Person under NI 43-101 and
AIM. Mr. Mihalop consents to the inclusion in this announcement of
the matters based on his information in the form and context in
which it appears.
ON
BEHALF OF THE BOARD OF DIRECTORS
"Richard D. Williams"
Richard D. Williams,
P.Geo
For additional information please
contact:
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Caution regarding forward
looking statements
This news release contains certain "forward-looking
information" and "forward-looking statements" (collectively,
"forward-looking statements"). Forward-looking statements include
predictions, projections, outlook, guidance, estimates and
forecasts and other statements regarding future plans, the
realisation, cost, timing and extent of mineral resource or mineral
reserve estimates, estimation of commodity prices, currency
exchange rate fluctuations, estimated future exploration
expenditures, costs and timing of the development of new deposits,
success of exploration activities, permitting time lines,
requirements for additional capital and the Company's ability to
obtain financing when required and on terms acceptable to the
Company, future or estimated mine life and other activities or
achievements of Cornish Metals, including but not limited to:
mineralisation at South Crofty, mine dewatering expectations,
Cornish Metals' exploration drilling programme, exploration
potential and project growth opportunities for the South Crofty tin
project and other Cornwall mineral properties and the timing
thereof, timing and results of Cornish Metals' feasibility study,
the Company's ability to evaluate and develop the South Crofty tin
project and other Cornwall mineral properties, strategic vision of
Cornish Metals and expectations regarding the South Crofty mine,
timing and results of projects mentioned. Forward-looking
statements are often, but not always, identified by the use of
words such as "seek", "anticipate", "believe", "plan", "estimate",
"forecast", "expect", "potential", "project", "target", "schedule",
"budget" and "intend" and statements that an event or result "may",
"will", "should", "could", "would" or "might" occur or be achieved
and other similar expressions and includes the negatives thereof.
All statements other than statements of historical fact included in
this news release, are forward-looking statements that involve
various risks and uncertainties and there can be no assurance that
such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such statements.
Forward-looking statements are subject to risks and
uncertainties that may cause actual results to be materially
different from those expressed or implied by such forward-looking
statements, including but not limited to: risks related to receipt
of regulatory approvals, risks related to general economic and
market conditions; risks related to the availability of financing;
the timing and content of upcoming work programmes; actual results
of proposed exploration activities; possible variations in Mineral
Resources or grade; outcome of the current Feasibility Study;
projected dates to commence mining operations; failure of plant,
equipment or processes to operate as anticipated; accidents, labour
disputes, title disputes, claims and limitations on insurance
coverage and other risks of the mining industry; changes in
national and local government regulation of mining operations, tax
rules and regulations. The list is not exhaustive of the factors
that may affect Cornish's forward-looking
statements.
Cornish Metals' forward-looking statements are based on the
opinions and estimates of management and reflect their current
expectations regarding future events and operating performance and
speak only as of the date such statements are made. Although the
Company has attempted to identify important factors that could
cause actual actions, events or results to differ from those
described in forward- looking statements, there may be other
factors that cause such actions, events or results to differ
materially from those anticipated. There can be no assurance that
forward-looking statements will prove to be accurate and
accordingly readers are cautioned not to place undue reliance on
forward-looking statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Cornish Metals does
not assume any obligation to update forward-looking statements if
circumstances or management's beliefs, expectations or opinions
should change other than as required by applicable
law.
Market Abuse Regulation (MAR)
Disclosure
The information contained within this announcement is deemed
by the Company to constitute inside information pursuant to Article
7 of EU Regulation 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 as
amended.