Cornish Metals Inc. has addressed the recent decline in its share price, stating that there is no operational or corporate reason for the movement. The company reported a positive independent Preliminary Economic Assessment (PEA) for its South Crofty tin project in Cornwall, UK, which validates its economic viability. The PEA shows a base case after-tax Net Present Value (NPV) of US$201 million and Internal Rate of Return (IRR) of 29.8%, with a 14-year life of mine (LOM).
Ongoing project activities at South Crofty include refurbishment of the New Cooks Kitchen (NCK) mine shaft, mine dewatering, treatment of mine water through the Water Treatment Plant (WTP), and exploration drilling of the Wide Formation. The company will release its unaudited financial statements and management discussion and analysis (MD&A) for the three months ended March 31, 2024, by May 23, 2024.
Ken Armstrong, Interim CEO of Cornish Metals, expressed the company's confidence in the robustness of the PEA and the potential of the South Crofty tin project. The project is fully permitted for mining through to 2071 and has planning permission in place to construct a process plant and other surface facilities on company-owned land adjacent to New Cooks Kitchen shaft.
Cornish Metals is a dual-listed mineral exploration and development company focused on advancing the South Crofty high-grade, underground tin project through to a construction decision, as well as exploring its additional mineral rights in Cornwall, UK. The company's South Crofty project possesses Planning Permission for underground mining, to construct new processing facilities and all necessary site infrastructure, and an Environmental Permit to dewater the mine.
Tin, a Critical Mineral, is a key component in electronic and electrical infrastructure, making it critical to the energy transition. South Crofty benefits from strong local community, regional, and national government support and could generate up to 320 direct jobs. The news release has been reviewed and approved by Mr. Owen Mihalop, Chief Operating Officer for Cornish Metals Inc., who is the designated Qualified Person under NI 43-101 and a Competent Person as defined under the JORC Code (2012).
The company encourages engagement with investors through its investor hub and provides contact information for additional inquiries. SP Angel Corporate Finance LLP serves as the Nominated Adviser & Joint Broker for Cornish Metals.