Sign up Australia
Proactive Investors - Run By Investors For Investors
Why invest in SML?
Strategic Minerals Plc: THE INVESTMENT CASE
INVESTMENT OVERVIEW

Strategic Minerals' plan comes together as Leigh Creek joins fold

Leigh Creek will add to the cash being generated by New Mexico-based iron ore business Cobre to fund exploration and development opportunities elsewhere.
copper wires
INVESTMENT OVERVIEW: SML The Big Picture
Leigh Creek is a copper prospect

Cobre is the backbone of Strategic Mineral PLC’s (LON:SML) multi-project strategy.

The New Mexico-based operation produces iron ore from copper tailings, generating cash to fund exploration and development opportunities elsewhere.

Watch: Strategic Minerals Plc begins exploration drilling at Leigh Creek

Cobre sold 10,304 tonnes of magnetite ore for US$598,000 in the three months to September 2018.

That brings its total sales for the 12 months to September to 74,364 tonnes for US$4.8mln, up from 57,279 tonnes for US$3.7mln last year.

Cash generation amounted to US$927,000 in cash in the September quarter.  

Cobre Mark 2

Strategic hopes that Leigh Creek can become a Cobre Mark Two, in terms of cash generation anyway.

Acquired in March the company holds three approved mining leases for the project covering a number of copper oxide deposits including Lorna Doone, Lynda, Mountain of Light, and Mount Coffin.

Resources are estimated at 3.61mln tonnes at 0.69% copper for 24,900t of copper metal.

First exploration at Leigh Creek for decades

A drilling programme to expand the resource started in October.

John Peters, Strategic Mineral’s managing director, said it is the first exploration to be undertaken at the former copper mine for forty years.

Drilling will comprise 10 holes over 500m to look for potential repeat copper oxide deposits at the Lyndhurst Project comprising two unmined copper oxide deposits, Lynda and Lorna Doone, 500m apart.

Two holes will also test for mineralisation below the Rosmann East pit adjacent to the Mountain of Light plant.

Strategic will use cash generated from Cobre (and Leigh Creek eventually) to fund its earlier stage projects.

The company holds a 50% stake in the Redmoor tin/tungsten project in Cornwall, where a first drilling programme was completed in November 2017.

A recent report by mining giant Rio Tinto cited tin as one of the most critical metals for new technologies and Strategic is positive about Redmoor’s prospects.

A second phase of drilling will start soon ahead of a pre-feasibility study in 2019.

The site is also located 40km from the Hemerdon tin/tungsten mine and processing plant owned and operated by Wolf Minerals, which went into administration October.

Hanns Camp

In the southern hemisphere, the company is pushing its battery metals agenda hard with exploration at its Hanns Camp project in Western Australia.

Held by Strategic Minerals’ subsidiary Central Australian Rare Earths (CARE), Hanns Camp is located within the Laverton Project, 12km east of well-known nickel sulphide deposits at Windarra.

A geological review at Hanns Camp, conducted in conjunction with nickel specialist Dr Martin Gole identified a number of potential nickel sulphide targets.

Mount Weld

Mount Weld project, in Western Australia, is also part of the CARE portfolio.

Located within the highly prospective Eastern Yilgarn Craton Province, CARE holds exploration tenements for cobalt, nickel, rare earth elements and gold.

Strategic Minerals intends 2,600m of shallow drilling to test several mineralisation targets.

Ambitious target

John Peters, managing director has said previously he wants the company to be worth £100mln.

That’s a punchy target with the market value at £18.7mln at 1.35p, but the group is clearly being positioned with that goal in mind.  

View full SML profile View Profile

Strategic Minerals Plc Timeline

Related Articles

1520866985_shutterstock_161588243.jpg
March 13 2018
Getting financing will be a "significant" milestone toward the construction, said the group
copper wires
October 12 2018
Leigh Creek will add to the cash being generated by New Mexico-based iron ore business Cobre to fund exploration and development opportunities elsewhere.
copper tubes
May 30 2018
The latest economic study at Parys Mountain has delivered some encouraging numbers against a backdrop of rising base metals prices

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use