Cornish Metals starts second phase of South Crofty shaft refurbishment

11th Jul 2024 13:32

(Sharecast News) - Minerals explorer and developer Cornish Metals announced the start of the second phase of shaft refurbishment at its wholly-owned and permitted South Crofty tin project in Cornwall on Thursday.

The AIM-traded firm said the refurbishment of the New Cook's Kitchen (NCK) shaft was progressing as planned.

It said the installation of the phase two work platform was on schedule, which would enable faster replacement of old shaft timbers with new steel guides.

The water level in the NCK shaft was being maintained at about 280 metres below the surface, while the treated water being discharged into the Red River apparently remained consistently within permitted standards.

Additionally, Cornish Metals said it had completed its 14-hole Wide Formation exploration drilling programme, with final assay results to be reported once available.

Cornish Metals said it had received the initial payment for the sale of the Nickel King asset in Canada, and was in discussions for the sale of other non-core assets located outside the UK.

The company was also advancing its search for a permanent chief executive officer, with an appointment expected in the third quarter.

It said the market fundamentals for tin remained strong, with prices trading above $30,000 over the past three months and currently up nearly 40% year-to-date to around $35,000.

"Installation of the phase two work platform is an important milestone for the refurbishment and dewatering programme at South Crofty," said chief operating officer Owen Mihalop.

"Work continues to progress in-line with our adopted work plan and schedule that allows for NCK shaft refurbishment to continue in parallel with mine dewatering."

Mihalop said the water treatment plant and the dewatering pumps continued to operate as designed.

"Pumping rates continue to match modelled expectations, which have been established based on the project's extensive operational database, including the fact that South Crofty operated for the majority of the twentieth century with no water inflow from the flooded historic workings of adjacent mines."

At 1236 BST, shares in Cornish Metals were up 1.23% at 5.77p.

Reporting by Josh White for Sharecast.com.