Redmoor Transaction

In March 2019, NAE announced a transaction for the sale of it’s 50% of the Redmoor project to it’s JV partner, Strategic Minerals Plc, for a total of ~A$5m in 3 stages;

  • Stage 1: ~A$2M cash on the completion date
  • Stage 2: ~A$1M cash payable 180 days after settlement of Stage 1
  • Stage 3: Royalty of 1.5% of the Net Smelter Revenue from Redmoor production capped at A$2M

The Transaction is scheduled for completion on 30 May 2019 subject to parties agreeing on the terms of transaction documents including Royalty Deed and Mortgage to secure the Stage 2 payment.

Location and History

The Redmoor Project is located between the village of Kelly Bray and the town of Callington in southeast Cornwall, United Kingdom, approximately 25km by road from the city and port of Plymouth. The area has well-established infrastructure and is located in the world class Cornwall tin–tungsten–copper mineralised district.

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2019 Resource Update

A resource update was undertaken in February 2019 based on the highly successful 2018 drilling program undertaken by CRL.

In February 2019, an updated Inferred Mineral Resource of 11.7 Mt @ 0.56% WO3, 0.16% Sn, 0.50 % Cu (1.17% Sn Eq or 0.82% WO3 Eq) was defined within 10 parallel high-grade zones within the Sheeted Vein System (SVS) using a break even cut-off grade of 0.45% Sn Eq.

Redmoor Inferred Mineral Resource Estimate table

Cut-off (SnEq%) Tonnage (Mt)

WO3

%

Sn

%

Cu

%

SnEq2

%

WO3Eq2

%

>0.45 <0.65 1.5 0.18 0.21 0.30 0.58 0.41
>0.65 10.2 0.62 0.16 0.53 1.26 0.88
       
Total Inferred Resource 11.7 0.56 0.16 0.50 1.17 0.82

This represents a tripling of the contained metal (now 137kt Sn Eq) compared with the previous March 2018 Mineral Resource estimate.

The 1.17% Sn Eq updated Inferred Mineral Resource grade, reported at a 0.45% break-even cut-off grade, is 17% higher than the previous March 2018 Mineral Resource estimate (4.5Mt @ 1.0% Sn Eq).

Included within the Inferred Mineral Resource is 10.2Mt at 1.26% Sn Eq at a 0.65% Sn Eq total cost cut-off grade, reinforcing the potential to economically mine the resource.

Continuity of the SVS which hosts the high-grade zones is now confirmed over a strike length in excess of 1,000 m and for some 650 m down dip. Ore body geometry appears likely to be amenable to underground mining.