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13 May 2008 06:00
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www.tertiaryminerals.com
13 MayΒ 2008
DRILLINGΒ ATΒ STORUMANΒ FLUORSPAR PROJECTΒ
CONFIRMS POTENTIAL FOR LARGE DEPOSIT
10Β DrillΒ HolesΒ CompletedΒ OverΒ 2km Strike LengthΒ
Visible Fluorspar MineralisationΒ PresentΒ In All Holes Including Step-Out Holes
Indications OfΒ Potentially LargeΒ Β ExtensionsΒ To Known Mineralisation
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Tertiary Minerals plc ("Tertiary" or "the Company") is pleased toΒ reportΒ positiveΒ initialΒ findings fromΒ the completion ofΒ its first drilling programme at its 100% owned Storuman fluorspar deposit in the VΓ€sterbotten district of Northern Sweden.Β
The drillΒ programmeΒ wasΒ designed toΒ re-investigate a large, shallow,Β body of fluorspar mineralisation discoveredΒ in the 1970'sΒ byΒ Granges AluminiumΒ who calculated anΒ "ore reserve" of 12.5 million tonnes grading 13.3%Β fluorite (CaF2)*Β with a favourable mining geometry.Β
Tertiary has completedΒ 10 drill holesΒ onΒ a SE-NW traverse along theΒ fluorsparΒ mineralised zone at an average spacing of 250m, over a total strike lengthΒ of 2km to test theΒ grade and continuity of mineralisation and to collect samples for metallurgical testwork.
Visible fluorspar mineralisationΒ wasΒ intersected in all of theΒ 10Β holes drilled.Β Whilst it is not possible at this stage to estimate fluorspar gradeΒ byΒ visual inspection,Β the intensity of mineralisationΒ appears consistent withΒ expectations based onΒ historically reported results.Β The core has now been submitted for assayingΒ and results are expected byΒ theΒ endΒ ofΒ June.
Drilling hasΒ shownΒ that the fluorspar mineralisation occursΒ as a replacementΒ within anΒ 8-10m thickΒ gritstone/sandstone unitΒ occurring near the base of aΒ sub-horizontalΒ sequence ofΒ sedimentsΒ that overlieΒ aΒ granite basement. ThisΒ sequenceΒ isΒ remarkably uniform over theΒ largeΒ areaΒ so farΒ drillΒ tested.
TheΒ final three holes of the programme were speculative holes,Β each stepping-out 250-300mΒ beyond the previously knownΒ perimeter of the deposit at itsΒ NWΒ limits.Β AllΒ threeΒ step-outΒ holesΒ intersectedΒ fluorspar mineralisation.Β
OfΒ particularΒ significanceΒ was the final step-outΒ hole,Β drilled onΒ theΒ westernΒ side of theΒ highway.Β Β The highway follows a valleyΒ where the sub-horizontalΒ fluorspar deposit is eroded away.Β PreviouslyΒ theΒ depositΒ wasΒ onlyΒ knownΒ toΒ sub-cropΒ on theΒ easternΒ side of the valleyΒ where itΒ has been drilled andΒ continuesΒ for an unknown but potentially large distanceΒ into theΒ hillside.Β The step-outΒ drill holeΒ on theΒ westernΒ side of the valleyΒ was abandonedΒ for technical reasonsΒ before reaching its finalΒ plannedΒ depth,Β but not beforeΒ intersecting fluorspar mineralised gritstone and demonstrating that the ore horizon continuesΒ and is mineralisedΒ with fluorsparΒ on theΒ westernΒ side of the valley.Β ThisΒ suggests a furtherΒ potentially large areaΒ of mineralisationΒ is presentΒ on the westΒ side of theΒ valley.
Commenting today PatrickΒ Cheetham, Executive Chairman of the Company, recently returned from Storuman,Β saidΒ "MyΒ initial impression is that theΒ programme has met all of our expectations,Β and more.Β We need to wait for the assay results but theΒ drilling hasΒ certainlyΒ confirmedΒ a large deposit of fluorspar mineralisation and the step-out holes showΒ potential forΒ furtherΒ substantialΒ extensions."
The Company plansΒ to completeΒ a Scoping Study for development of the deposit over the summer.
A drill hole location plan and photographs from the drilling programme willΒ soonΒ be uploadedΒ toΒ the Company's website atΒ www.tertiaryminerals.com.
Further info:
Patrick Cheetham, Executive Chairman, Tertiary Minerals plc.Β Tel: +44 (0)1625-626203
Ron Marshman/John Greenhalgh, City of London PR Limited. Tel: +44(0)20-7628-5518Β
Jonathan Wright, Seymour Pierce Limited.Β Tel:Β +44(0)20-7107-8000
* ThisΒ "ore-reserve"Β is historic and not compliant with any recognisedΒ resource or reserveΒ code.
Background
Tertiary was awarded the Storuman exploration licence in January this year. TheΒ Storuman fluoriteΒ deposit is located in an area with well established infrastructure. It is located adjacent to a sealed highwayΒ 20kmΒ from the regional town ofΒ StorumanΒ which is connected by road and rail to the city andΒ portΒ ofΒ UmeΓ₯Β on theΒ Gulf of Bothnia. In the other direction the highway leads to theΒ port city ofΒ Mo-i-RanaΒ inΒ Norway.
Fluorspar is the commercial name for the industrial mineral fluorite (calcium fluoride - chemical formulaΒ CaF2). It is the main industrial source of fluorine for the manufacture of hydrofluoric acid and derivative fluorine chemicals including refrigerants, PTFE (Teflonβ’) and aluminium hydrofluoride, a flux used in the reduction of alumina to aluminium. It is also used as a flux in steel making, in the ceramics industry and in the manufacture of nuclear fuel (uranium hexafluoride).
Fluorspar consumers, several of which are based in Europe, are facing critical supply shortages as traditional supplies fromΒ ChinaΒ are diverted to meet growing Chinese domestic demand.Β ChinaΒ has recently imposed export quotas and export taxes to discourage export and thus ensure domestic supplies.Β
A conceptual target for the Company is a mining operation producing at least 100,000 tonnes per annum of acid grade fluorspar which currently sells inΒ EuropeΒ for over US$300 per tonne, more than double the price some few years ago. The world market for fluorspar is just over 5 million tonnes per annum of which 65% is for acid grade fluorspar.
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