Strategic Minerals (LSE:SML) — MRE & New Economic Assessment

0:00 Good morning, and welcome to the STRATEGIC MINERALS PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time via the Q and A tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Charles Manners, executive chair. Good morning, sir. Thank you, Lily. Good morning to everyone, and welcome to our presentation. It's really good to see that so many people have signed in today to hear our update. I know that many of you are people who are long term shareholders and supporters of the company, and I'm sure that many are also somewhat more recent arrivals.

0:51 In both cases, you're most welcome, and we thank you for your interest in and support for STRATEGIC MINERALS. Now before I go any further, I need to draw your attention to this disclaimer, which is on your screen. It's a very standard one, which I'm sure you'll have seen many times before and is available for reading in greater detail in the presentation, which can be found on our website. For those people who don't know me yet, I'm Charles Manners, and I'm the executive chairman of SML as as well well as as being a director of all of our subsidiary companies. Joining me today is Mark Burnett, who's our executive director, and he's also a director of all of the subsidiaries, including Cornwall Resources Limited, and Dennis Rowland, who's the managing director of Cornwall Resources Limited.

1:42 I have no doubt that you're all aware that Cornwall Resources Limited is the entity through which we operate the Red Moor project, which is the major focus of the company today and which is where today's presentation will be primarily focused. We last presented the company to fellow shareholders in this format on the twenty first of October last year. Since then, I can assure you there has been a huge amount of work done and a great deal of progress has been made on a number of fronts, which has culminated in the publication this morning of our updated mineral resource estimate accompanied by an updated financial estimate. We are extremely encouraged by the results of this work, and we will now be working at pace to ensure that CRL plays its full role in the development of these critical minerals for the benefits of the supply chain in the West.

2:37 On the October 21, our share price closed at naught 0.9 p around five and a half times since then. We also raised £4,000,000 at a price of 1.3 on the January 22 and a further £4,700,000 at a price of 3.5 p on March. This funding, taken in conjunction with our ongoing profitable operations at Cobre and our already announced intention to sell the Lea Creek copper oxide project, mean that we are now in a very strong position to advance the project at an increasingly fast pace, and you can be certain that this will remain the top priority and the full focus of the board.

3:26 Of course, we have enjoyed a strong tailwind in the critical mineral space in general and in tungsten in particular. But in the six months of drilling that we carried out last year, we also saw a very significant increase in the size of the resource, and the metallurgical work has led to a considerable improvement in the recovery rate for tonnes. All of this has enabled us to disclose a very large uplift to the NPV of the resource, which we now state as $1,540,000,000 using our base case assumptions as set out in today's RNSs. Mark and Dennis are more than excited to share with you in a moment some of the further details of today's update.

4:14 But before I pass over to them, I'd like to say a few quick thank yous. Firstly, to the Cornwall Council and Shared Prosperity Fund, the initial grant of £750,000, which we match funded, really was the catalyst that unlocked everything. It can be seen as a textbook case of the benefits of public private partnership. The impact has been enormous and not just in financial terms. Our increased scale has led to employment opportunities, both direct and indirect, and we highly value the chance to develop ever deeper ties with the local community. We're also very grateful to our many collaborators, but especially including Snowden Optiro and in particular Lori Hassall, who has worked tirelessly to deliver the MRE on time and on budget.

5:04 Finally, my fellow directors of STRATEGIC MINERALS and I would like to really thank and congratulate all of the team at Cornwall Resources led so capably by Dennis and Rowan. They have worked really hard and with great skill to get us to this position, and we as a board and as shareholders are enormously grateful to all of them. I'm very proud of their considerable achievements. Now I'll hand over first to Mark and then on to Dennis to tell you more about this transformational update, after which we will be pleased to answer as many questions as time and regulation allows. Thank you. Thank you, Charles, and good morning to everybody. I'm Mark Burnett, an Executive Director of Strategic Minerals and a Director of Cornwall Resources.

5:50 I'd like to also extend my thanks particularly to all the followers and supporters of STRATEGIC MINERALS over the last eighteen months. We are delighted by the performance and I hope you are too. Today marks really a threshold moment for the company. When we joined the board, we inherited a very strategic asset, but it was sort of hidden from view. Now we have launched it into the market and can confirm this really is a globally important critical minerals strategic asset in The UK. Today's announcements were twofold. Firstly, we announced a new JORC compliant inferred 2026 MRE of 17,400,000 tons at point 49% tungsten, point 17% tin, and point 44% copper with a tungsten equivalent grade of point six five.

6:43 This confirms our status as Europe's highest grade under the tungsten project, which we sort of knew all along, but we're delighted to be able to confirm that in the public eye. We also announced an updated economic assessment to show that we have a base case NPV of just over $1,500,000,000. That's on a post tax m p v eight basis demonstrating a 40% IRR. And the base case is at $1,200 an MTU of tungsten. And as I'll show you later, there is still plenty of upside in the price and therefore plenty of upside in value. In terms of tonnage, we've increased the resource by just under 50%, and that gives us a 2.4 times increase in life of mine up to twenty nine years. So if there's any doubt that this is a strategic asset, we've confirmed that this could be in production over the long term supporting Western supply chains.

7:43 We also have some very interesting, additions in terms of co products, tin in particular, copper and silver. Clearly, we move forward into more drilling this year and into PFS, we will be showing, how these additional credits add further value to the project. Next slide, please. A quick overview on the company for those, who haven't heard the story before or those who have, as a refresher, we have three, individuals on the board of Strategic Minerals PLC, the listed Topco. You've been introduced this morning to Charles Manners, the executive chair myself, Mark Punessen, executive director and Philip Hennesleyton, nonexecutive director.

8:28 Together, we provide a very strong capital markets focus to this business. And as Charles has already mentioned, we have an extremely strong technical presence in Cornwall and our lead asset and delighted at the progress there and can only thank the team. Next slide please. As a refresher on the overall company, there are three pillars here. We have a cash flowing asset in New Mexico, USA. And as we've previously messaged, that's an enormously unique and important asset for an exploration development company because it provides us with cash flow to support our top co operations and to some extent our developments of our flagship project. We also have the Lea Creek copper mine in Australia, which is currently under its sale process, and we are confident that that will close and we can redistribute returns from that sale back into our flagship project. But what I really want to focus on going forward and really want to message is that Redmoor tungsten tin copper is now our flagship.

9:33 It is now our main focus. The other assets are we are extremely lucky to have the other assets, and they provide us with huge optionality and additional value, but the focus is very much on delivering a critical minerals asset of global significance in The UK market. Lastly, quick corporate snapshot. We are listed on the AIM exchange in London, just over 2,600,000,000 shares outstanding. Charles Manors, the Chair is the largest shareholder, disclosable above 3%. I'm happy to say that whilst we have no further shareholders currently reporting above the 3% reporting threshold, we have some very significant shareholders in terms of single family offices and semi institutions and institutional shareholders on the register, which we have managed to gather over the last two fundraisers earlier this year.

10:31 Now onto the flagship, Redmoor Tungsten Tin Copper Project. This is what we believe to be Europe's highest grade undeveloped tungsten deposit and the second highest globally. It really has the potential to be a strategic secure supply of Western world critical minerals, and that is the focus of the company going forward. As I've said this morning, we've announced our new JORC MRE. It's increased from 11,000,000 tonnes to 17,400,000 tonnes at 0.65% tonnes equivalent. And I'm delighted to say that some of the exploration target that we previously messaged, we had converted very successfully into the new numbers, but we still retain an exploration target for additional upside. And Dennis will cover that off shortly. Why tungsten?

11:19 Well, it really is the critical mineral of the moment. It is an extremely important mineral for industrial development used in high tensile industrial applications, the energy transition, high computational capability and of course defense. There are strong demand drivers in any case of 5.8% CAGR year on year for the foreseeable future and some very large blue sky demand drivers in terms of nuclear fusion. And of course, the impacts that the defense has, on the current, Western climate. I would say that it's a constrained market. Overall, China controls around 80% of production, and the Western world really needs a sustainable and strategic supply in its own hemisphere.

12:14 And we provide that going forward. I think to note the price appreciation of tungsten has been quite extreme. We're delighted that the demand drivers are there to support high prices going forward, particularly in those industrial applications that I've mentioned. I'm hand over to Dennis to give a real technical brief on the opportunity and the success announced this morning. And we're in very good hands. Dennis? Cool. Thank you, Mark. Good morning all, and thank you for joining us today as we announce the outputs of the last twelve months program. I'm Dennis Roland, the MD of Commonwealth Resources. The key highlights for the 2026 MRE as follows: a 49% increase in the tonnage from 11,700,000 tonnes up to 17,400,000 tonnes.

13:03 It's also worth pointing out that only three of the nine boreholes that we drilled last year were pure exploration. However, we've continued to grow the resource both through the addition of the nineteen eighties data sets, but also by increasing the metal prices, which are supported by current market fundamentals. This significant increase in contained metals, which is across the board for both for all tungsten, tin, and copper, are significant. But we've also, for the first time, announced the inclusion of silver, which is supported by our metallurgical studies, which is about two seventy grams per tonne per tonne of copper concentrate produced. What isn't included in here is that at the current prices set within our economic study, that's about $240,000,000 worth of silver in ground value.

13:52 As you can see, there are significant and fundamental shifts in the way that the deposit has been modeled. The old model is on the left here, and the new model is on the right. The old model was modeled on a tin equivalent basis, and the new model is split between tungsten high grade zones, tin high grade zones, and the resource shell, which includes the copper and the low grade shell reported within the MRE. The aims of the drilling of this year was to infill the portion of the exploration target, which was about one to 2,000,000 tons of resource that we could add, plus testing the structural continuity of grade and structure within the deposit, the addition of the nineteen eighties data through twin drilling, which we completed with three boreholes, and to investigate the addition of new zones of mineralization, including the new North Tin Zone, which is not included on one of these images, but it is included in on the one above.

14:48 The new modeling has also significantly strengthened the resource and significantly added new zones of mineralization. So the high grade zones that were originally included in the old model have now been expanded and added to with the new model. About twelve months ago, we announced the ability for the company to initiate the shared prosperity grant fund through through securing £750,000 worth of grant funding. The company matched this one for one, and we set out very clearly during our application process the key aims and deliverables for that program that had to be delivered within twelve months. That included 5,000 meters of drilling, including all of its aims, completing some of the historical core re logging and sampling, a new MRE and economic assessment, the metallurgical test works, and and some other activities work, which aren't listed here.

15:42 I'm happy to say that we not only completed all of those, but we completed them on time. Some in some cases, like the drilling ahead of schedule, we completed everything on budget. And for every pound worth of grant money that we have spent, as of yesterday's share price, we'd added about a £100 to our market cap. Again, just going back to the drill results and how those pass through to the aims that we set out for drilling, but also how they feed through to to the model. Every hole that we drilled had a target, whether that was testing short space continuity of structure and grade, whether that was twinning, whether that was infilling, and in almost all cases, adding new zones immunization to to the resource.

16:29 Every hole was a success. As you can see, some of those holes reported significantly higher grades, and I can explain later how how those pass through into into the model. Mark, I'll hand back to you for the economic analysis. Thank you. The second leg of our great announcements this morning was the 2026 updated economic sensitivity analysis. This is a firm indication of where this project could sit on an economic return profile as we move into PFS going forward. This is a detailed slide, which I'd encourage you to review, at your leisure, but let me just highlight some some key points. The headlines are that at a base case level, we can demonstrate a post tax NPV eight of 1,540,000,000 US dollars with a post tax IRR of 40%.

17:19 That's based on a tungsten price of $1,200 an MTU of APT. But as you may have seen on the graph earlier on during my brief on the tungsten price, we're now well into the 2 thousands on $2,000 a ton an MTU, apologies, in in the global markets. So we can demonstrate there is going to be significant upside to our current numbers. And as you'll see on the right hand side, we do actually model a higher case opportunity using $1,800 an MTU for post tax NPV of $2,700,000,000 This will be over a twenty nine year life of mine at 600,000 tons a year production rate. Again, that is a significant resource, a significant production opportunity and could really underpin one of the Western supply chains in terms of tungsten demand.

18:14 We'll be working into further studies as we move towards PFS updating this current economic sensitivity analysis as well as the more fulsome model at a later date. What I wanted to really get across here is what we've messaged so far to date is that there are two pillars really to understand with this resource and economic opportunity. Number one is that it's a highly profitable opportunity, and we've redemonstrated that this morning with significantly higher metal prices. But also that it was always a low capital intensity opportunity, absolutely vital in terms of getting to production quickly and also ensuring that there is sufficient financial support in the markets. I can confirm that the CapEx on these current numbers has increased by 28%, But that's not unusual in an environment in which the original economic study was struck in 2020.

19:08 And we've seen broadly speaking 30% inflation rate of inflation in CapEx up until this point. But we still retain that low capital cost opportunity at US110 million dollars in the mining space to build a mine and to get into production for under $200,000,000 is a real opportunity. And I'm delighted to say that we've retained that key pillar. And going forward, I think we can find as we've previously messaged opportunities to reduce that cost even further by looking at alternative processing opportunities regionally and and globally. Where do we sit now on the on the bubble chart, the investor bubble chart or the or the football field as well? To confirm that we are a small but mighty resource, Grade is the real driver of this opportunity as we've messaged before. And I'm delighted to say if you input the tungsten equivalent grade that we've restated this morning at 0.65%, we can move our bubble dramatically to the right to ensure that we are really at the at the top quartile of high grade opportunities.

20:18 And grade, of course, is really important for the economics. It's where the offtakers get comfortable. It's where the financiers are comfortable in terms of commodity price fluctuations. And it also ensures that we can take advantage of all the other credit metals that we have within the resource and the production profile. As I said earlier on as well, there is still further upside within this. We had successfully converted a lot of the exploration target four to 8,000,000,000 tons into this new resource, but we still retain further exploration target of 1,800,000 to 3,400,000 tonnes. And we're looking forward to delivering on that through the next drill program and through to PFS. Dennis, back to you. Thank you again, Mark.

21:06 Going back over just the mineral rights and the situation where we sit in within East Cornwall, we Cornwall Resources has three mineral rights licenses in place with with three different license holders for a total of 91 square kilometers of of exploration rates. The Redmore project sits within the Redmore mineral rights license area, which is 23 square kilometers, and that license has been in place since 2012. It's further in place until 2037, but can be renewed at request, and it can be automatically converted to an option for mining, subject to release of planning permission and feasibility study. The blue area on the map is is our groundbreaking Duchy of Cornwall license area. We were the first company in over forty years to be able to secure a Duchy of Cornwall license area, and we are looking at ways of further strengthening this this agreement.

21:58 The the entire license area has significant other prospects, and and so whether that is historical mining or prospects that were drilled in the last forty or fifty years, but we also have done exploration, including geophysics, and soil sampling, and regional mapping on other things that could be within the area, and we look forward to providing further information on these as we go forwards. The Redmore license area sits within the remit of Carrington Town Council, and we continue to, receive significant support and, help with from the the council, and we hope to continue that, good working relationship in the future. And, Mark, I will pass back to you. You're still muted, Mark.

22:46 Apologies. So to summarize, today is a really threshold moment for us. We have demonstrated that we have a world class strategic minerals resource here in Cornwall, and that will be the focus going forward. We have world leading grades. We have an accelerated development pipeline moving towards PFS and highly profitable economics. To give you a feel of where we sit, looking at our base case and our upper case post tax MPVs today, we are currently trading between sort of 612% of potential value according to those numbers. So it's clearly a lot of value still to go, and we look forward to marching this project forward and delivering on that value going forward. As I said, we had inherited a very good asset. Today, we've confirmed that it is a brilliant asset, and now we move forward into some very exciting times and demonstrating further uplift in value, into PFS.

23:45 I'd like to thank you all for attending the presentation this morning, and now we will move to some question and answer sessions. I would just add that, there are a lot of there's a lot of work going on in Korma at the moment. I know in the past, we've been very impressed by the quantum and detail of questions that we receive on the projects, and and it just goes to show how excited people are along with ourselves about the potential value here. But there are things that we just can't talk about. So please forgive me if if we if we skip over some of the questions. We will endeavor in time to answer those. But but for your awareness, as a as a what is now a globally significant asset, there are certain things that we we just can't comment on. Thank you very much. I'm handing back to the organizers for the Q and A.

24:37 That's great. Thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the Q and A tab situated on the right hand corner of your screen. Just while the company take a few moments to review those questions submitted today, I'd like to remind you that recording of this presentation along with a copy of the slides and the published q and a can be accessed via investor dashboard. As you can see, we have received a number of questions throughout today's presentation. And, Mark, if I could just hand back to you to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end. Of course. Thank you very much. So in order, on the ones that we can we can answer, I will paraphrase some of them because some of them are quite lengthy. Question number one, obviously, a lot of tie time is taken up with Redmoor, but I'm also interested in hearing about Cobre and Lea Creek.

25:24 I think it would be good to update the market on a regular basis about our about these other projects. Completely agree. What I want to get across today is this Cobre is still very important for us. As I've mentioned, It provides us with cash flow that supports the top co operations so that you know any money that we raise in the market which we have goes into the ground, at Redmoor. Lea Creek, similarly, is very important to us from strategic sale point of view and redistribution of cash from rationalizing the portfolio, and I'm confident that we're going to deliver on that. In terms of, new customers at Cobre or in terms of timeline for Lee Creek, I'm not at liberty to comment at the moment, but it is still a significant focus of us. However, what I really want to get across today is just how great the Red Moore asset is and where we will be focusing our efforts going forward.

26:17 Question number two, what is the estimated time scale for completion and publication of the PFS? I don't think we can be fully so I don't think we can fully comment on that. But Dennis, maybe you could give a feel for for the next steps on the development of Gremel. Yep. So the the full schedule and kind of layout of both the PFS program and the infill drilling program will be released hopefully fairly shortly, the drilling before the PFS. At this time, we won't be able to comment much further on that, but we will be releasing to the market an updated schedule. Thank you. And then similarly, I'll let pass to fast track the PFS. Very possibly, we need to get into the meat of the PFS work going forward, but we can provide some formal comments and guidance on that going forward.

27:08 Next question, what type of mine is envisaged at Redmoor? Will it be open pit given the depth of the deposit or more likely to be underground? I'll quickly comment on that and then hand over to SML. I mean, this will be an underground opportunity. There are enormous advantages to that in terms of capital cost, in terms of footprint, in terms of local support. This will be an underground opportunity as there have been many historical underground opportunities in the region supported by a rich history of mining in this particular part of Cornwall. Dennis, maybe you could also give out a quick comment. Yeah. If I may just switch back to this slide, which shows the deposit under the ground. So the top line surface there and the dark lines are the top line surface is the surface. The lines are the drill holes. The pink on there is our granite body that we sit above.

27:55 This is an underground mining opportunity, and we will use a traditional mining method, which is long hole stoping on retreat underground, which is it's very common in Cornwall and also very com common for this type of deposit globally. Thank you. Dennis, maybe you could also just quickly comment on the support from the local region and local population because there's a few questions there that I think would be see some significant comfort from that. Yep. And and it's actually one of the key contributors to our ability to have unlocked the the Duchy Of Cornwall license area. Obviously, were very technically focused on our ability to deliver exploration success and advance a project. They didn't want someone just taking a license and sitting on it for years.

28:40 But one of the other key things that they were very interested in is how do we deal with our stakeholders? How do we message our project? What type of information is therefore passed on to the mineral rights owner? And, you know, is that positive? And therefore, how mineral exploration viewed within Cornwall or in The UK? In all of those cases, the Dutch EU are happy with both our responses, and they've been happy with, for the last two years, the work that we have done and how we've messaged that to them. That gives us therefore the opportunity to deal with them even further and look at other opportunities going forward. For the wider license area and for Cornwall itself, we continue to receive significant support from the local council, but also local community groups themselves as well.

29:27 With regards to the exploration drilling project, we're probably drilling closer to people's houses than any other project does in The UK, but we've never received a complaint about the drilling that we do because we take significant efforts to tell people about what we're doing, how we're doing it, when we are doing it, but we also take feedback very seriously. One of those, as an example, when we were drilling last year, and if I can just show you the drill pad that we drill on, 55 meters in front of this drill pad is houses. We were requested to add extra extra straw bales for a visual impact. We managed to not only secure those, but have them in place within a day. So we we take comments very seriously, but we take feedback even more seriously.

30:16 And have significant projects in hand for the next twelve months and beyond to further lay out how we see sustainability, but how we see developing this project further forwards. Thank you, Dennis. Next one, how did CRL, so Cornwall Resources, come to be a member of the USD and B consortium? What benefits and obligations does membership bring? I think this is really important question given the strategic significance of this asset in the Western world. Dennis, maybe you could comment. Yeah. So we actually joined about two years ago. It is a membership organization, so you have to submit member forms. There are no obligations, so it's it's free to join. There are symposiums and conferences that they hold on on a annual basis, but they also open opportunities directly to the Department of Defense or Department of War in The US.

31:08 And there's opportunities which are called white papers, and one of those is currently live, allow you to submit project information for interest in support from The United States. As we have previously messaged, we've had both visits to the site and conversations with the State Department and the Department of Defense and other key people within the US government. And we will continue to look at opportunities to create synergies between both The UK and The US. Thank you. Assuming finance is available, how quickly could Redmoor be bought into production and what are the steps? I think we can't give any formal guidance, but we could give you a feel of of the next work programs and how long it might take to get into production. Dennis, maybe you could comment. So the the significant contributor to the pre feasibility study is the infill drilling program that we have fully funded already.

32:10 So that is currently in setup. We have a drill rig on-site. We aim to be drilling very soon. And we are currently undertaking a planning application with Cornwall Council, which will be able to scale up this program. So last year we had two drill rigs on-site. We are looking at ways of scaling up the program beyond this. That is the major part of the program. Last year we drilled 5,000 meters. That means CRL have drilled 19,000 meters in total. The funding we announced in January was for 16,000 meters, and we are again looking at ways, given the positive results that we have announced today, to not only capture the infill, but potentially more. And I will release, through the company, further updates on the drilling program.

32:56 Over the last twelve months, as part of the program to get to an MRE in the economic case, We've also done a gap analysis between scoping study and PFS, which has delivered a delivery plan for costings and options for that costings, and we are well advanced on being able to move very quickly into the PFS. However, not only is that the case, but the methodological test works that we've done, the infill drilling, and but also the the testing of short space continuity has meant that we have sped up significantly some of the key things that we have to deliver as part of PFS. We're about six months ahead of schedule, therefore, on the metallurgical test works that would be required for a feasibility study, because we did them this year. The drilling that has proved short space continuity has been able to expand our drill spacing for PFS infill drilling, which means we can cover a larger portion of the resource for the same value that it would have been under the 2020 scoping studies estimates of of infill drilling, which means we can do things either cheaply, more cheaper, or faster, and in all cases, better.

34:05 We therefore hope to be able to deliver the PFS at pace, and we also look at options to commence certain portions of the DFS work streams as early as possible. Thanks, Mark. Thanks, Dennis. Next question. To what extent are you considering third party processing options, e. G. Regional facilities to reduce CapEx and accelerate development. So all options are on the table. We are determined to get this project into production, into fruition. There are some regional processing opportunities. There are some global processing opportunities. I would say our focus now is to is to work out a plan of operations in line with the PFS. And as I've already alluded to, there may well be some very significant CapEx savings we can make by utilizing some of these synergies in the regional global context.

34:54 Dennis, do you have any comments to as Yeah. Just to to add to that. Obviously, all options are studied as part of pre feasibility study. That is whether we process on-site or we process off-site. But the key factor processing off-site is a piece of work that we've already started, and again, we demonstrated that recently with myself and Rowan going to Tomer in Germany. So we are ahead of the game with regards to PFS workflow for off-site processing, because we or on-site processing because we've looked at ore sorting technology. We've given samples to TOMERA to look at the availability of our ore to be processed for iron ore sorter. And in both cases, whether on-site or off-site, the ability to pre concentrate our already high grade ore will have significant benefits for both either processing plant size and capacity or the amount of material that needs to leave the site to be processed elsewhere.

35:51 Thank you. An important question here and I think will demonstrate even more upside. So can you explain in simple terms why after last year's drilling with high grades, the tons have increased and contained metals that grades have reduced slightly? I think that's an important question. There is a very positive answer to it. Lots of upside, Dennis. I'll go back to this slide again. So the key differentiator there is when you usually have significantly high grade drilling results, statistically, one of the things you have to do with that is top cut the high grades, because they just don't model very well within the deposit. So we actually top cut the highest of grades that come out of the drilling program. That just gives us a fair representation within the deposit of what we are likely to see. However, those high grades plus additional tonnes would normally add to both a significant increase in tonnes, a significant increase in contained metal, and alterations in the grade. However, we have a fourth component. It's the metal prices.

37:02 So compared to the previous deposit and the previous version of the model, our metal prices have increased significantly. What that means is, in blocks of the model that were previously sub economic or not included for any reason, those have now been included because of the increase in metal price, those blocks become economic, they are added to the deposit. And we've done this on a base case of 85,000 a tonne per tungsten, and the other metal prices used in the base case of model, of the economic model. What that also shows with regards to the resource that's on the table here is previously the high grade zones were just done on an equivalent basis, and there was 12 of those across the deposit. We now have 18 of them within the deposit. But we also have modelled, and they are split between tungsten dominant with tin and copper within them, and tin dominant with tungsten and copper within them. But what we've also modelled, and this is another significant change between the old model and the new, is we've also modelled kind of copper rich and other metal zone that surrounds these high grade zones, and you can see that in gold on on the right hand map here.

38:17 In the previous model, when you are when you are within the mining plan, when you are mining a high grade zone, any dilution that was captured within those blocks for the mining plan was counted as zero contribution for metal. The new model estimates metal value within the blocks surrounding the high grade zones because it is there, and therefore we are getting a fairer representation of metal that would come in as part of the dilution outside of the high grade zones when we are in production. Which is why in the RNS also announced today, our actual 17,000,000 tonne resource within the mine plan itself is 23,000,000 tons. And and the 23,000,000 tons is what will be mined, not the 17,000,000 tons. Therefore, if you bring previously sub economic blocks into the model, which are now economic, those are generally lower grade. So as you add them in, the average grade goes down slightly, and that can that is reflected in in the table. Those changes are not in any way significant in my view. It's the contained metal increases, which is the significance. That is where the value is. Thank you, Mark.

39:29 Thanks, Dan. Question, why go into the next stage, which and the indicated results? Well, I'm delighted to say that the next stage is drilling towards the PFS, which will actually also yield indicated results. So we're gonna run those two work programs concurrently, and, you know, we're confident that you'll see some very, very promising results going forward. What limits the annual production? Surely, if you could increase the offtake, it would reduce the life of the mine but 60 MPV. That that's true. And we will be looking at options for expanding this opportunity. If you look at the model that we've, released today, in the background and the calculations, a huge amount of the mine life value is not included because as you progress forward on a discounted cash flow basis, after ten to fifteen years, the discount is so high that that value up to twenty nine years of life of mine doesn't come back into the model. So we would be keen on exploring an expanded production scenario. Clearly, would be more attractive to our potential off takers and and potential partners and competitors, but it would also demonstrate significant value in an uplift sense when we next publish the economics.

40:53 Forgive me. I've lost my position because there are so many questions to the left. Mark, may I because it act the next question actually comes the previous as well. So what would change if you were to have rerun the entire scoping study rather than just updating it? And that kind of answers the last question also. So this year's work was limited in most cases by the twelve month schedule that we had with the shared prosperity fund. One of the key parts of that, therefore, was we didn't rerun the entire scoping study. There just isn't the time, and also there isn't a need. We've done all of the work within the scoping study. It is robust. We have done the work of how to take the scoping study into PFS. That is robust. So all of the inputs that we've done this year, the drilling, the metallurgy, the metal prices, and other changes, those bits and the CapEx and OpEx increases as well all of those are fed into updating the previous scoping study model.

41:49 That scoping study model was therefore based on 600,000 tonnes a year, and there was a mining report that we have received in 2020 by Wardle Armstrong that laid out not only the production rate, but also what machinery and processing plant you would need for that, and the cost for doing so. So that is the one thing that we didn't change, is the capacity and the production rate of the rock. We have looked at some of those potential scenarios, and we will run those as we move forward. That can be done basically from now, but it will be done in the lead up to the PFS, and it's part of the PFS program to flex those production rates, but also look at the cost implications of that, but also the financial gain that we would gain from increasing our production rate. Thanks, Mark.

42:36 Thank you. Our next question, which I think is important in terms of the small print and how robust our numbers are. How did you determine the $1,200 MTU for the NPV calculation? Yep. K. I'll take that one, Mark. So there are four cases that were listed in in the economic case. Each of those comes with basically a expert opinion on what metal values should be used. We looked at both the in all cases, we looked at the six month average, the twelve month average, a forward projection for the next thirty years from August, but we also used the expert opinion of an external tungsten market expert.

43:21 He then went out to both global producers, but also global processors, both in the West and in China, to look at what their projections were. And he provided free cases for metal price projections. In all cases, his projections came back higher than our base case. And and therefore, through both consultation with our QP and our CP, so the person who signs off our mineral resource and the person who signs off the the mining assessment, And with conversations with our external experts and using that evidence, we've come to these four cases basically. The third case, which is the MRE case, is basically what would happen if if the metal prices used to to make the model is the metal prices that were used to make the economic sensitivity analysis.

44:12 The low case is the August case, which is the the long term average for the next ten, twenty years. The upside case is is a taster, but a conservative taste of of what would happen if these metal prices continue to increase as they still do. And the base case, therefore, is is our most robust case, and it's the one that has the the significant backing of all of our of our expert opinions. Thank you, Mark. Thank you. Dennis, another one for you. Where do you plan to explore next and why? I think this is a great question where we can bring in some of the potential upside we've identified, but also some of the work we've released to the market but didn't make it into this particular cut of the model. Yeah. So with the drilling this year, we obviously have highlighted mineralization outside of the vein system. That is both in front of or behind the sheeted vein system.

45:04 So the model, for the vast majority of the model, it captures the sheeted vein system only. The only bit that is included separately to that is within the tin high grade zones, because it is basically a tin deposit. The north tin zone is currently included as part of the tin zone portion of resource. This will be further strengthened and separated at a late stage once we've completed a stage of relogging and sampling of some twenty seventeen drill core. We have finished the twenty eighteen drill core. However, the model and the new deposit model and geochcore model has also highlighted a a significant number of additional grading zones outside of the sheeted vein system, which the team are now taking additional samples off, and we will obviously come back to the market later with updates on those.

45:51 Outside of Redmoor, the the wider Tamar Valley license area is is very prospective. There are a number of historical mines, which were mostly copper tin mines or in in some cases lead lead silver. Between these mines are a significant number of unexplored zones or like the plantation vein, which was drilled by 12 drill holes in the nineteen seventies, targets that have just been left. The plantation vein itself is is a key portion of our of our focus, and we have a team member who is quite well advanced on on a piece of work with that, and we will again come back with an update as we advance that. Thank you, Mark. Thank you. Given the importance of your work to Western supply chains, what could policymakers do to make your life easier?

46:36 And that's a great question. I mean, the world has completely changed in terms of, government support for mining in the last five years, really prompted by the the turning one of The US to secure critical minerals. We would be a huge beneficiary of government support, be our own domestic government or indeed other governments from from the Western world. Governments are seeing projects now in the mining space in all sorts of ways, whether that be cash investments, whether that be underwriting in some form of agreement or or indeed grant funding, of which we've already been a a massive we've been massively supported by grant funding as Dennis and Charles have highlighted. And we I believe we're very good custodians of public funds because we've generated enormous value, for every pound of of current government money that has gone into this project.

47:31 I hope that we are in a position as we walk towards feasibility study and really firm the numbers up for our development scenario that we're in pole position to speak to key governments about support. You'll be pleased to know we're already in those discussions early stage, but we are still in those discussions. And and support could come from, you know, sort of the r and d aspect of this project through feasibility indeed in terms of supporting the the eventual mine build. Couple more questions. I I know we probably have about ten minutes to run. Let me just see where we are. When do you consider securing land for processing at the mining sites? Dennis, could you just give a bit bit of color on that?

48:22 So the the considerations to that are already underway, but the main one of the main focuses of the PFS is that options model. So where do you put a mine? What does the mine look like? What are the key considerations with regards to our local stakeholders, but planning and permitting, and environmental permitting as well, but also just for access to the mine. So the key focus of the PFS and the work going into it will be on looking at what is the best options for this, and at what point do we put either options on it or other ways of securing that property. Thank you, Mark. Thank you. I think we probably have time for one more question, which I think is actually an important one. Will the silver be banked as profit or for funding the project?

49:14 I want to slightly change that. I I I think it's an important question because it highlights the upside we're seeing. So when we inherited the project, we knew it was very rich in in but I think, Drew, in the last eighteen months, we realized there are copper and silver credits. Clearly, having a metal's component, extremely attractive in the current metal price environment. There are also leveraging that component as we move forward to develop whether that's to internal cash flow or indeed to support some form of structured financing. I think you'll see that we've got really exciting news coming up with regards to additional metals both within the actual Red Bull footprint, but as Dennis has indicated, as we extend out laterally and in-depth.

50:13 I think that's it for questions. I wanted to just thank you very much indeed again for the volume and the depth of questioning. We enjoyed this last time and we've enjoyed it again. I hope we've given you a very good overview of our latest news. Again, we're very grateful for your support. I noticed a couple of couple of the comments on the chat rooms are in support of of how the project has gone. You know, we're enormously grateful. I think I will now bring this session to a close. Maybe I can hand back to Charles. Yes. Well, thank you very much to everyone for attending today. I hope you've, found it useful and interesting. And as a board and as a company, we're very much looking forward to advancing this project at pace now.

51:01 And you can be certain that we'll keep investors updated at regular intervals as we move along, but thank you for your attendance today. That's great. Thank you for updating investors today. Can I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations? This may take a few moments to complete, and I'm sure be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation, and good morning to you all. Thank