Tungsten, tin: Strategic Minerals provides positive update on Redmoor project

Tungsten

UK listed Strategic Minerals has successfully completed an updated mining scoping study and financial assessment on its UK based Redmoor tungsten and tin project, operated through wholly owned subsidiary Cornwall Resources. The update includes rescheduling of high-grade material to the first half of the mine life, with a potential 10+ year life of mine schedule that includes extracting 7.2Mt ore at 0.59% WO3, 0.10% Sn, and 0.39% Cu. The update additionally includes significant uplift to project economics when compared to 2019 results, with IRR upgraded to 29% and US$128M NPV8% using consistent metal price assumptions.

Roskill view

The study is based on Redmoor’s existing JORC compliant inferred mineral resource estimate of 11.7Mt @ 0.56% WO3 and 0.16% Sn, representing 51.8kt contained tungsten and 18.7kt contained tin. Further to this, additional mineral resource potential at depth and to the west of the project offers scope to expand proposed development of the project.

Compared to other advanced tungsten projects, Redmoor has the potential to develop one of the largest tungsten deposits outside of China that is set to come online during the next decade. Only Northcliffe’s Sisson deposit in Canada (214kt W) and King Island Scheelite’s Dolphin deposit in Australia (79.7kt W) are larger. However, it must be noted that Redmoor has an inferred resource, while most projects that Roskill considers to be advanced have completed feasibility studies and detail measured and indicated resources.

At present, the UK does not produce tungsten or tin, with production of both metals ceasing in late 2018 with the closure of Wolf Minerals’ Drakelands mine. There are, however, several projects under development in addition to Redmoor, including Tungsten West’s recent acquisition of Drakelands, with work underway to return the project to production, and Cornish Metals’ South Crofty tin project, as well as several less advanced projects. These UK based projects represent tungsten production capacity of up to 3.6ktpy and tin production capacity of up to 3.7ktpy. With demand set to increase for both metals over the coming decade, UK developments could bring welcome additions to both global tungsten and tin supply.

Roskill’s Tungsten: Outlook to 2029, 14th Edition report was published in April 2020 and details trends in tin production, consumption, trade, and prices, as well as profiling the major industry players. Click here to download the brochure and sample pages for the report, or to access further information.

 Roskill’s NEW Tin: Outlook to 2030, 12th Edition report was published in August 2020 Click here for more information.

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This article was written by Adam Slade. Please get in touch below if you wish to discuss further:

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