A company working to revive production at a tin mine in Cornwall has released its unaudited financial statements and management, discussion and analysis for the six months ended July 31.
Canadian-headquartered mining company Cornish Metals has seen a 31.6% increase to contained tin in the in the Indicated Mineral Resource category for the lower mine at South Crofty mine near Redruth. The AIM-listed firm said it was looking to test the geometry and the continuity of tin mineralisation on an extension of the Great Flat Lode, a mineral-bearing body of underground rock.
Richard Williams, chief executive of Cornish Metals, said: "The Cornish Metals team has made great progress continuing to advance the South Crofty project over the last quarter with the construction of the water treatment plant and updated Mineral Resource at South Crofty.
"The recently announced 39% increase in tonnes and the 32% increase in contained tin confirms management's belief in the potential to continue to grow the Mineral Resource base at South Crofty."
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Cornish Metals included a financial update for the period six months ended July 31 2023. There was an increase in operating costs impacted by higher insurance costs attributable to more site-based activities primarily relating to the construction of the WTP and related dewatering work.
Expenditure of £5.3m ($8.8m) incurred during the period of construction of the WTP and related dewatering equipment. Other project related costs totalled £3.7m ($6.1m) relating to the advancement of South Crofty. While total operating expenses were at £1.2m ($2m) compared to £1.1 ($1.8) the previous year.
The company, which is working to revive production of metal at the mine, has also seen the construction of the a water treatment plant was completed at £7m. Wet commissioning of the WTP commenced with mine dewatering expected to commence in October 2023 once the WTP is treating water to the required standards
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In July 2023 Cornish Metals installed two submersible pumps in the New Cook's Kitchen shaft with the pumps and variable speed drives. A 15-month power supply contract was also agreed for the provision of 100% renewably generated power.
Mr Williams continued: "Much has been achieved since the beginning of the year and, with commissioning of the water treatment plant underway, it is pleasing to see that commencement of dewatering the mine is just round the corner. Furthermore, there has been a lot of progress made in planning and preparing for the re-accessing of the mine which will take place in parallel with mine dewatering.
"Additionally, a successful drill program at the Wide Formation will allow us to assess the potential to extend both the mine life and increase production throughput at South Crofty.
"Overall, the last few months have been very busy but also exceptionally rewarding as we move towards a construction decision for South Crofty. The Feasibility Study remains on track for completion in 2024. The financial position of the Company is healthy and we remain focussed on our objective to complete the dewatering of South Crofty within the next 18 months."
Work on a South Crofty Feasibility Study has been underway since June 2022. It is planned to be completed by the end of 2024.
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