New Age Exploration Ltd. said May 28 that a phased drill program of between 5,000 meters and 10,000 meters will start in June at its Redmoor tin-tungsten joint venture property in the U.K. after a recent preliminary economic analysis indicated good potential, subject to the definition of additional resources.
The company's 50/50 partner at Redmoor is Strategic Minerals PLC, with Cornwall Resources Ltd. serving as joint venture vehicle.
Drilling will initially aim to expand resources, with a focus on a recently defined exploration target of up to 6 million tonnes. An updated resource estimate was completed in March, increasing the tin equivalent grade from 0.42% to 1.00%. The equivalent grade comprises 0.37% tungsten, 0.25% tin and 0.57% copper.
New Age Exploration said that Cornwall Resources completed the preliminary analysis based on recent mining, processing and surface infrastructure studies.
An underground mine is anticipated as a result of various factors including grades increasing with depth and the layout of the ore body, with further studies required.
The preliminary mine design includes a decline from surface, with access to the central areas of the resource from which ore drives can be developed in both directions along strike.
The company noted that phase-one drilling has been funded for 4,000 meters through an underwriting and loan arrangement provided by Strategic Minerals.
Strategic Minerals provided Cornwall Resources with a £332,000 loan and is also underwriting a £664,000 placement of Cornwall Resources shares planned for early September. New Age Exploration has until Aug. 31 to fund its £332,000 share of the placement to retain its 50% interest, otherwise its stake could decrease to 40%.
Drilling and a further update to resources are expected to be completed by the end of the year.
