Positive PEA for South Crofty
Strongbow Exploration has reported results of an independent, NI 43-101 compliant, Preliminary Economic Assessment (PEA) for its 100%-owned South Crofty tin project in Cornwall, UK, which indicates the project is potentially economically viable and technically feasible.
The mineralised material amenable to extraction under the PEA scenario, which includes tin, zinc and copper, totals 2.575 Mt of ore at a tin equivalent grade of 1.55%, or comparable to some 40,000 tonnes of contained tin. The study conceives of an underground operation using modern trackless mechanised techniques operating over an 8-year period. Assumed recovery grades based on past testing are 88% for tin, 85% for copper and 70% for zinc. Average Life-of-Mine cash costs were calculated at $3.36/lb SnEq (US$7,409 per tonne) with all-in sustaining cash costs of $4.44/lb. (US$9,790 per tonne). Pre-production Capex is estimated at US$118.7M.
Richard Williams, Strongbow's President and Chief Executive Officer commented: "The completion of a PEA for South Crofty is another significant step in advancing the project to a production decision. The outcome of this PEA, coupled with the strong potential to materially add to the Lower Mine tin Mineral Resource, supports our belief that South Crofty can become an operating mine once again."
The PEA also notes several growth opportunities for the project, which include opportunities for additional in-mine exploration along the main lode systems, where mineralisation remain open along strike and at depth, defining additional Mineral Resources in other nearby production areas and carrying out further exploration in the Dolcoath and Carn Brea mines, which are adjacent to South Crofty and fall within Strongbow's mining permission area.
The Company is currently targeting completion of water treatment trials for the end of February and will submit an application to the Environment Agency for a permit to commence dewatering the mine.