Last checked at 2 Sep 2008 07:00
Tertiary Minerals plc
2 September 2008
DRILLING RESULTS CONFIRM STORUMAN FLUORSPAR DEPOSIT EXTENDS FOR AT LEAST 2 KM ALONG STRIKE
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Tertiary Minerals plc ("Tertiary" or "the Company") is pleased to report the results from first round assays of drill core from its 100% owned Storuman fluorspar deposit in the Västerbotten district of Northern Sweden.
Drill holes 08TS009 to 11 were speculative holes, each stepping-out 250-300m beyond the previously known perimeter of the deposit at its NW limits. The corresponding assay results confirm that all holes intersected fluorite mineralisation with hole 08TS011 returning 1.75m grading 12.8% fluorite. This hole, which stopped in mineralization due to drill rig problems, is of particular interest as it suggests potential large extensions to the mineralisation on the west side of the valley not previously explored by Gränges.
The reported results are from the first round of assaying (113 samples including quality control samples) which was restricted to drill core intervals with visually significant fluorspar content. Significantly, a number of check assays on core above and below these zones suggests that the fluorspar mineralised intervals may be thicker than visual estimates alone suggest. Consequently a further 138 samples are being submitted for assay and further results and final drill intersections will be reported in the next few weeks.
Tertiary's Chairman Patrick Cheetham commented: "Because of the apparent loss of all of the drill core from the 1970s work at Storuman, it has been important to demonstrate that the grades and continuity of mineralisation reported by Gränges are real, and it is particularly encouraging to find extensions to the mineralisation not found by Gränges. Meanwhile the price of fluorspar continues to climb with prices of $460-480/tonne now being reported, up from $300/tonne earlier this year." he added.
The receipt of the reported assay results has allowed the selection of drill core for metallurgical testing and the metallurgical testwork programme is now underway.
A drill hole location plan is available on the Company's website at www.tertiaryminerals.com.
Table Of Significant Drill Intersections (First Round Assay Results)
| Drill Hole Number | From (Depth Down-Hole) (m=metres) | Drill Assay Interval (m=metres) | Assay ResultsFluorspar (CaF2) % |
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| 08TS001 | 14.30m | 1.25m | 12.1% |
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| 08TS002 | 13.50m | 7.00m | 10.0% |
| includes | 13.50m | 2.80m | 13.3% |
| Includes | 18.80m | 1.70m | 13.3% |
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| 08TS003 | 14.40m | 11.50m | 10.8% |
| Includes | 14.40m | 1.15m | 14.4% |
| Includes | 20.40m | 1.90m | 12.9% |
| Includes | 23.70m | 2.20m | 16.6% |
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| 08TS004 | 60.25m | 4.35m | 13.5% |
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| 08TS005 | 9.20m | 10.30m | 13.1% |
| Includes | 14.80m | 4.70m | 19.2% |
| Includes | 16.30m | 3.20m | 22.7% |
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| 08TS006 | 11.50m | 18.05m | 10.6% |
| Includes | 11.50m | 3.35m | 21.5% |
| Includes | 25.15m | 4.40m | 15.5% |
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| 08TS007 | 25.10m | 2.75m | 16.7% |
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| 08TS008 | Planned but not drilled |
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| 08TS009 | 28.00m | 1.80m | 13.9% |
| and | 37.10m | 1.30m | 16.5% |
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| 08TS010 | 26.95m | 5.50m | 5.1% |
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| 08TS011 | 27.20m | 1.75m | 12.8% |
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Background
Tertiary was awarded the Storuman exploration licence in January this year. The Storuman fluorite deposit is located in an area with well established infrastructure. It is located adjacent to a sealed highway 20km from the regional town of Storuman which is connected by road and rail to the city and port of Umeå on the Gulf of Bothnia. In the other direction the highway leads to the port city of Mo-i-Rana in Norway.
Fluorspar is the main industrial source of fluorine for the manufacture of hydrofluoric acid and derivative fluorine chemicals including refrigerants, PTFE (Teflon™) 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 from China are diverted to meet growing Chinese domestic demand. China has recently imposed export quotas and export taxes to discourage export and thus ensure domestic supplies.
A conceptual target for the Company is a mining operation producing at least 100,000 tonnes per annum of acid grade fluorspar. Current prices are $460-480/tonne for Chinese material cif Gulf port. The world market for fluorspar is just over 5 million tonnes per annum of which 65% is for acid grade fluorspar.
Further info:
Patrick Cheetham, Executive Chairman, Tertiary Minerals plc. Tel: +44 (0)1625-626203
Ron Marshman/John Greenhalgh, Lothbury Financial. Tel: +44(0)20-7011 9411
Jonathan Wright, Seymour Pierce Limited. Tel: +44(0)20-7107-8000
* This "ore-reserve" is historic and not compliant with any recognised resource or reserve code.