While the Redmoor resource is already the world’s third highest-grade new tin-tungsten project, 2018 drilling aims to demonstrate Redmoor is truly world-class both in term of grade and tonnes.
The objective of the phase I program is to increase the size and grade of the Inferred resource before moving onto the 2018 phase II program.
Notably, the outlook for the tin and tungsten markets is positive.
A study by Rio Tinto and MIT ranked tin #1 and tungsten #7 as metals affected by new technology.
Tin may be the forgotten EV metal
Tin is a critical metal for new technology and its uses include electronics, electric vehicles (EVs), robotics and renewables.
EVs have more electronics and therefore need more tin and next-generation tin-based batteries are under development.
Notably, tin is also used in conventional lead-acid batteries.
Tin prices are expected to continue to rise due to supply shortages and growing demand fuelled by increased usage of tin in new technology.
Tungsten’s unique properties make it essential
Tungsten is an essential metal due to its unique properties which include the highest melting temperature of all metals, very high density and very high hardness.
Major uses of tungsten include cemented carbide (drill bits, saw blades), alloys for high temperation application (aerospace and missile systems), light bulbs and electronics.
China produces around 80% of global tungsten but significant supply cutbacks since late 2017 due to Chinese environmental regulation are expected to support tungsten prices.
Developing the Redmoor and Lochinvar projects
New Age is developing its advanced Redmoor Tin Tungsten Project and Lochinvar Coking Coal Project both located in the UK.
Redmoor has a high-grade Inferred resource of 4.5 million tonnes grading 1.00% tin equivalent and an additional Exploration Target, which is the focus of drilling.
Lochinvar is a large strategic coking coal asset located to supply the European steel industry.
An updated scoping study from March 2017 revealed a net present value (NPV) of US$410 million.
The project boats lowest quartile operating costs and low capital costs due to existing rail and port infrastructure.
All three resolutions at EGM passed
All three resolutions proposed at today’s extraordinary general meeting have been passed.
• Ratification of prior issue of 112 million shares at 0.65 cents;
• Approval for issue of 134.15 million shares at 0.65 cents; and
• Approval for issue of 14.7 million shares to the placement lead manager.