Tertiary Minerals Regulatory News (TYM)

24 Jan 2008 07:00

Tertiary Minerals PLC24 January 2008 www.tertiaryminerals.com 24 January 2008 TERTIARY MINERALS ACQUIRES MAJOR FLUORSPAR DEPOSIT IN SWEDEN • Deposit Defined By Drilling Over At Least 2.5 Sq.Km. & Has World Class Potential • International Fluorspar Market Facing Severe Supply Shortages • Drilling and Metallurgical Testwork To Start As Soon As Possible_____________________________________________________________ Tertiary Minerals plc ("Tertiary" or "the Company") is pleased to announce thatit has been awarded an exploration licence covering a major deposit of fluorsparnear Storuman in the Vasterbotten district of Northern Sweden.Fluorspar is the commercial name for the industrial mineral fluorite (calciumfluoride - chemical formula CaF2). It is the main industrial source of fluorinefor the manufacture of hydrofluoric acid and derivative fluorine chemicalsincluding refrigerants, PTFE (TeflonTM) and aluminium hydrofluoride, a flux usedin the reduction of alumina to aluminium. It is also used as a flux in steelmaking, in the ceramics industry and in the manufacture of nuclear fuel (uraniumhexafluoride). Fluorspar consumers, several of which are based in Europe, are facing criticalsupply shortages as traditional supplies from China are diverted to meet growingChinese domestic demand. China has recently imposed export quotas and exporttaxes to discourage export and thus ensure domestic supplies. The Storuman fluorite deposit was first evaluated by the Swedish GrTM?nges Groupin the 1970's when drilling, resource evaluation and metallurgical testwork wascarried out. Subsequently the GrTM?nges Group was taken over and broken up andthe Storuman discovery was largely forgotten. "It is only recently that we have been able to unearth the archived data thathas allowed us to find the deposit on the ground" commented Mr Cheetham,Executive Chairman of Tertiary Minerals plc. The Storuman deposit is a flat-lying sandstone-hosted replacement deposit. Ithas been defined by 39 diamond drill holes and extends over an area of at least2 km by 1.2 km where it is typically 3-10 m thick. No recent resource estimate has been made for the deposit. However, in 1974GrTM?nges documented an "ore reserve" of 12.5 million tonnes grading 13.3% CaF2.Of this, 37% fell within an open-pit designed by GrTM?nges, the rest beingreportedly mineable from underground. This estimate is not compliant with anycurrent resource or reserve code and should therefore only be used to indicatethat the tonnage potential of this deposit is very large.Granges drilling did not close off the deposit and it is open to expansion onthree sides along from, and away from, the trace of its outcrop along the sideof a hill. Some of the highest grade drill intersections having been made at theextremities of the drilled area e.g1 : Drill hole 26 : 3.4 m grading 23% CaF2 from 9.9 m depthDrill hole 34 : 15.2 m grading 14% CaF2 from 47.3 m depthDrill hole 38 : 3.0 m grading 20% CaF2 from 34.2 m depth Metallurgical testwork carried out by GrTM?nges was successful in producing acidgrade (min. 97% CaF2) fluorspar concentrate with very good recoveries after finegrinding. Further metallurgical testwork will determine if marketableconcentrates can be produced. The deposit is located in an area with well established infrastructure. It islocated adjacent to a sealed highway and only 15km from the regional town ofStoruman which is connected by rail to the City and Port of Umea on the Gulf ofBothnia. The Company has carried out a preliminary site evaluation and relocated thefluorspar mineralisation in outcrop. A conceptual target for the Company is amining operation producing at least 100,0000 tonnes per annum of acid gradefluorspar which currently sells in Europe for over US$300 per tonne, more thandouble the price some few years ago. The world market for fluorspar is just over5 million tonnes per annum of which 65% is for acid grade fluorspar. At present, China accounts for over half of world fluorspar production butexports only 25% of its output. Export tonnages have fallen by more than halfsince the year 2000 and this trend is predicted to continue. Furthermore, thequality of the exported material is both declining and becoming unpredictable."Whilst the boom in Asian iron ore and base metal demand is well documented, theindustrialisation of Asia has also had a profound, but less well publicisedimpact on the industrial minerals supply chain", said Mr Cheetham. "China hasalways relied on imports of iron ore and some base metals, but historically hasbeen a major exporter of fluorspar to world markets. This supply is now beingredirected because of the need to feed the growing domestic demand, leaving someWestern consumers high and dry. It could be the perfect time to develop a newEuropean source of fluorspar" he added. The Company will initiate a drilling programme to confirm grades, to enableresource calculations and to provide samples for metallurgical testwork as soonas a drill rig becomes available. Further details of the Storuman project, site photos, and schematic drill planswill soon be uploaded to the Company's website at www.tertiaryminerals.com. Further info: Patrick Cheetham, Executive Chairman, Tertiary Minerals plc. Tel: +44 (0)1625-626203Ron Marshman/John Greenhalgh, City of London PR Limited. Tel: +44(0)20-7628-5518Jonathan Wright, Seymour Pierce Limited. Tel: +44(0)20-7107-8000 Notes:The information in this release has been compiled and reviewed by Mr. PatrickCheetham (MIMMM, MAusIMM) who is a qualified person for the purposes of the AIMGuidance Note for Mining Oil & Gas Companies issued on March 16, 2006. MrCheetham is a Member of the Institute of Materials, Minerals & Mining and also amember of the Australasian Institute of Mining & Metallurgy.1. Drilled thicknesses reported are believed to approximate to true thicknesses. This information is provided by RNS The company news service from the London Stock Exchange