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Strategic Minerals publishes plans for Leigh Creek, updates on Cobre contract

Mountain of Light’s processing plant will be refurbished as part of the programme
iron dump
Cobre is in New Mexico

Strategic Minerals Plc (LON:SML) has published a work programme to restart operations at its recently acquired Leigh Creek copper mine in South Australia.

Full production is expected around mid-2019 at the Mountain of Light and Lyndhurst projects, while the existing plan will be extended for five years to include five other deposits and the heap leach pads.

Mountain of Light’s processing plant will be refurbished as part of the programme.

WATCH: Strategic Minerals' John Peters updates on Cobre and Leigh Creek

Strategic expects to increase the JORC resource by updating for current metal prices and improved processing recoveries, while updating a portion into the more certain reserves category.

Recommissioning of the Mountain of Light plant is expected to be internally funded from existing cash balances.

Separately, Strategic said it had suspended its minimum monthly tonnage requirement of 4,000 tons of magnetite to one of its customers at the Cobre tailings operation in New Mexico.

Strategic said the customer had asked for iron ore shipments in March, April and May to be halted due to environmental planning approval taking longer than expected to come through.

The underlying contract for a further 360,000 tons of magnetite is not affected said Strategic, which expects deliveries to resume in June.

John Peters, Strategic Minerals’ managing director added: "The temporary suspension of the minimum shipment requirement demonstrates the close working relationship that Strategic Minerals and Southern Minerals Group have with our long-term clients.

"Last quarter's figures did not include any suspended sales, demonstrating that, even without these sales, both SMG and the company as a whole are profitable.

"Having dealt with similar environmental approval processes before, the company is understanding of the situation and looks forward to resumption of normal shipments in June."

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