The company announced that it reached an agreement with Roskear Minerals LLP to explore and develop the mineral resources in the Roskear section of the South Crofty tin mine. The agreement will last for up to 25 years. Cornish Metals, Roskear Minerals, and Brownfield Investments also agreed lease terms for a 1.2 hectare site surrounding the New Roskear Shaft in Cambourne for 23 years.
Much of the ore produced from South Crofty during the 1980s and 1990s came from the Roskear area of the mine. Cornish Metals considers the area to be a key part of expanding the existing mineral resource at the mine. The New Roskear Shaft will allow Cornish Metals to access this part of the mine, and could serve as a ventilation shaft as it did in the past.
Finally, Cornish Metals agreed a binding heads of terms with Wheal Jane Ltd for the disposal of waste material from the treatment of mine water at South Crofty. The agreement, which will allow Cornish Metals to store the waste at the Wheal Jane tailings dam (some 12km east of South Crofty), will become effective once the dewatering of South Crofty begins.
Our view: Cornish Metals has begun ramping up work at its Cornish assets in the last few months, with recent drilling work announced at United Downs following the company’s initial placement on the AIM exchange. Drilling is scheduled to begin later this month or early April.