Cornish Metals Inc. has announced its decision to bring forward the refurbishment of the New Cooks Kitchen (NCK) shaft at the South Crofty tin project in Cornwall, United Kingdom. The rephasing of the shaft refurbishment is expected to significantly improve the functionality of the NCK shaft, enable larger equipment to access the mine at an earlier stage in its re-development, and ensure the highest health and safety standards as the company regains access to the underground mine workings. The refurbishment will also allow concurrent mine dewatering, with both processes expected to be completed by Q3 2025.
The company has re-allocated the proceeds raised from the offering completed in May 2022 to cover the cost of the shaft refurbishment during 2024, resulting in a cost saving of approximately 4 million. The ongoing Feasibility Study, except underground drilling, is expected to be completed in H1 2024, with a Preliminary Economic Assessment (PEA) for South Crofty remaining on schedule to be published in Q2 2024. The PEA will provide further guidance on the outstanding work programs and updated estimates of the funding requirements to achieve first tin production by the end of 2026.
Richard Williams, CEO and Director of Cornish Metals, expressed the company's commitment to safe, efficient, and cost-effective work practices and highlighted the significance of bringing forward the refurbishment of NCK shaft. He emphasized the confidence in the future of South Crofty and reaffirmed the management's belief that the project remains on track for production by the end of 2026.
The South Crofty tin project is a historical, high-grade, underground tin mine with Planning Permission for underground mining valid to 2071. It possesses the 4th highest grade tin Mineral Resource globally and benefits from existing mine infrastructure, including multiple shafts that can be used for future operations. The project could generate 250-300 direct jobs and has strong local community and government support.
An updated Mineral Resource estimate completed in September 2023 showed a 39% increase in tonnes and a 32% increase in contained tin in the Indicated category for the Lower Mine. The estimate is available in a report titled the South Crofty Tin Project - Mineral Resource Update NI 43-101 Technical Report, dated October 27, 2023, and can be accessed through the company's SEDAR+ page.
Overall, the decision to bring forward the refurbishment of the NCK shaft demonstrates Cornish Metals' dedication to advancing the South Crofty tin project and its confidence in achieving production by the end of 2026.