Cornish Metals Inc. has released a positive independent Preliminary Economic Assessment (PEA) for its South Crofty tin project in Cornwall, United Kingdom. The assessment validates the project's economic viability, with a base case after-tax Net Present Value (NPV) of US$201 million and an Internal Rate of Return (IRR) of 29.8%. The project is expected to be a low-cost and long-life tin mining operation, with a 14-year life of mine (LOM). It is projected to produce a clean, high-grade tin concentrate, positioning itself as a significant tin producer in Europe.

The PEA highlights attractive project economics and financial metrics, including a capital payback period of 3 years after-tax and a total after-tax cash flow of approximately US$626 million from the start of production. The average annual earnings before interest, taxes, depreciation, and amortization (EBITDA) are estimated to be US$83 million, with a 62.1% EBITDA margin in years 2 through 6.

The South Crofty project is expected to produce 49,310 tonnes of tin metal in concentrate over a 14-year LOM, with an average annual tin production of over 4,700 tonnes for years 2 through 6. The project also presents growth opportunities from additional in-mine and near-mine exploration, potentially extending the mine life and increasing production.

With a pre-production capital requirement of US$177 million, the project is fully permitted, with existing mine infrastructure, mining permission through 2071, and full planning permission to construct a processing plant to recover tin concentrate. The average all-in sustaining cash cost (AISC) is estimated to be US$13,661 per tonne of payable tin, positioning South Crofty as a low-cost tin producer.

The project is designed to be a sustainable mining operation with strong environmental, social, and governance (ESG) credentials. It will use modern, trackless, mechanized underground mining methods and the latest tin processing technologies, with a preference for using local supply chains to support the local economy.

Cornish Metals plans to host a PEA presentation on May 1, 2024, and a technical report prepared in accordance with NI 43-101 will be filed on SEDAR within 45 days of the announcement. The company aims to bring responsible tin mining back to Cornwall and the United Kingdom, with planned first tin production in 2027.