Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF)’s assay results from the remaining four drill holes of its Phase 1 programme at United Downs project in Cornwall confirm the potential to develop a mineral resource, says Hannam & Partners.
All holes intersected multiple mineralised zones, with the United Mines target continuing to demonstrate a transition from copper-rich to tin rich at depth, as seen at South Crofty, said the broker.
The outlook for tin at a macro level is also encouraging said Hannam.
“Within the UK, government recently published its critical minerals strategy where tin is defined as a highly critical mineral for the UK.
“The strategy outlines its plans for securing critical mineral supply chains for the energy transition, including accelerating the growth of domestic capabilities.
"As a result, we expect renewed focus on key strategic assets such as South Crofty.”
Adjusting for cash and outstanding options, warrants, and future shares to be issued under the SPA, Hannam has calculated a fully diluted, risked SOTP (sum-of-the part) valuation of C$51c or 30.6p, which Hannam says is 72% upside from the current share price.