Issue link: http://resourceworld.uberflip.com/i/712968
44 www.resourceworld.com a u g u s t / s e p t e m b e r 2 0 1 6 Strongbow Exploration acquiring UK tin project by Laura Barker Strongbow Exploration Inc. [SBW-TSXV], with 27% ownership held by Osisko Gold Royalties [OR-TSX], has finalized an agree- ment to obtain surface and underground mining rights for the South Crofty tin project in the UK. This development aligns with their plan to build a strategic metals company through acquisition and explora- tion of assets in North America and the UK related to tin and tungsten. The agreement was formed with Galena Special Situations Fund and Tin Shield Production Ltd. to purchase 100% inter- ests in Western United Mines Limited (WUM) and Cornish Minerals Limited Bermuda (CML), which own the project. The project is a past-producing under- ground tin mine located in the district of Cornwall, England. Mining in the district reportedly dates back 400 years, with 'modern' mining at South Crofty start- ing in 1967. The mine was closed in 1998 and allowed to flood after several years of depressed tin prices. Today, the timing may be right for South Crofty as Strongbow will acquire a 100% interest in WUM and CML by fund- ing the exit from care and maintenance. President and CEO, Richard Williams, said, "The average indicated resource grade at South Crofty is 1.8% tin. Inferred is 1.9%. At the current tin price (~US $17,000/ tonne), that is like mining 6%-7% cop- per (US $4,800/tonne) if you want to put it into that perspective." In addition, recent attitudes towards mining in the UK are changing. Williams said, "In the UK we are seeing strong support from local government and local populations to see new mines be put into production. Cornwall has a long history of mining – an area currently where there is high unemployment. Putting this mine back in to production will be welcome in the local economy." The underground mining permission at South Crofty is valid until 2071, and cov- ers an area of 15 km 2 to a working depth of 1,500 metres below surface. The estimated life of mine is nine years (assuming a 1,000 tpd operation and con- version of all resources into mineable reserves). The resource is open along strike and at depth. Williams explains, "A lot of the his- toric mining terminated against the 'Great Crosscourse fault'…There is potential for multiple millions of tonnes of additional resource on the west (other) side of the fault. The drilling that we have in mind currently would test structures on the west side of the fault to demonstrate that the potential is real." Strongbow recently closed the first tranche of a $5M financing to be used to obtain surface planning consents, complete water treatment tests, de-water the mine and undertake a PEA. It also plans to list on the AIM Exchange to assist with financing, including raising $5M for drilling. n miNiNg