Last checked at 17 Nov 2009 07:00
TERTIARY MINERALS PLC
www.tertiaryminerals.com
17 November 2009
Tertiary Minerals plc ("Tertiary" or "the Company") is pleased to advise that independent consultant Scott Wilson Ltd ("Scott Wilson") has reported on its review of the fluorspar mineralisation at the Company's Storuman project in Sweden. This is an essential component of the Scoping Study currently in progress.
The review considered the results of 39 drill holes completed by Gränges Exploration in the 1970s contained within a surface area of 2.1km by 1km (approx. 250m drill spacing), and 10 confirmatory drill holes completed in 2008 by Tertiary, mostly within the same area.
Scott Wilson has made an estimate of the tonnage and grade of mineralisation in the range of:
28 - 31 million tonnes grading 11.2-12.3% Fluorspar (CaF2) (see footnotes 1-4).
This estimate suggests potential for over 3 million tonnes of contained fluorspar. This is nearly double that contained in a historical estimate of 15.6 million tonnes grading 12.2% CaF2 reported by Gränges in the 1970s at the same cut-off grade. Whilst this estimate is part of the public historical record and calculated according to norms applicable at that time, the 1970s estimate does not conform to existing recognised reporting codes.
The available Gränges drill assay records could not be verified to the high level of confidence required to estimate a "Mineral Resource" under the JORC Code (neither original assay certificates nor detailed lithological logs could be traced).
However, Scott Wilson considers that the drilling to date has confirmed the uniform style and lateral continuity of the two known fluorspar mineralised horizons and it is the Company's expectation that a large part of Scott Wilson tonnage can be converted into a JORC Mineral Resource by further drilling within the area of the 1970s drill grid.
Furthermore, the Company believes that there is considerable potential for additional tonnage beyond the existing drill grid as the flat lying mineralisation remains open in three horizontal directions away from its outcrop.
When the current programme of metallurgical testwork is completed Scott Wilson will carry out a conceptual mine design, a preliminary economic evaluation of the project and complete the Scoping Study.
Footnotes;
Further info:
Patrick Cheetham, Executive Chairman, Tertiary Minerals plc. Tel: +44 (0)1625-626203
Jonathan Wright, Seymour Pierce Limited. Tel: +44(0)20-7107-8000
Background
Fluorspar is the commercial name for the industrial mineral fluorite (calcium fluoride - chemical formula CaF2). It 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).
In 2008, Fluorspar consumers, several of which are based in Europe, faced critical supply shortages as traditional supplies from China were diverted to meet growing Chinese domestic demand. China has imposed export quotas and export taxes to discourage export and thus ensure domestic supplies. Whilst the market demand eased in during the recession in late 2008 and 2009 the long term outlook is for continuing tightness in supply.
Tertiary's scoping study was initiated in late 2008 to follow up drilling results which confirmed the potential for a very large deposit of fluorspar on the company's 100% owned exploration licences at Storuman. The deposit is flat lying and has been indicated by drilling to occur over an area of at least 2.1km by 1km. It is located in an area with well established infrastructure adjacent to a sealed highway 20km from the regional town of Storuman. Storuman 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.
A conceptual target for the Company is a mining operation producing at least 100,000 tonnes per annum of acid grade fluorspar. The world market for fluorspar is just over 5 million tonnes per annum of which 65% is for acid grade fluorspar.
The scoping study to evaluate the technical and economic viability of developing the Storuman fluorspar deposit was awarded to Scott Wilson Ltd, an international design and engineering consultancy, which will be responsible for modelling the mineralisation, conceptual mine and process plant design, infrastructure, capital and operating costs estimation and financial modelling. Metallurgical testwork is being carried out by SGS Lakefield in Canada in consultation with the Company's metallurgical consultant, Delta Minerals, which will also provide a conceptual mineral processing flowsheet on which the process plant design will be based. URS Nordic AB, a wholly owned subsidiary of URS Corporation, has provided advice to Tertiary Minerals plc on the environmental and social permitting process for the Storuman mine development for inclusion in the Scoping Study.