P. Joint Venture Agreement

6 Sep 2007 12:23

Tertiary Minerals PLC06 September 2007 Tertiary Minerals plc 6 September 2007 JOINT VENTURE AGREEMENT SIGNED WITH INMET MINING CORPORATION ON VAHAJOKI COPPER-GOLD PROJECT, FINLAND • Inmet Must Spend •I Million Over 39 Months To Earn 75% Interest • IOCG Target Identified by earlier Tertiary Regional Programme • Immediate Start To Exploration Work At Vahajoki___________________________________________________________________ Tertiary Minerals plc ("Tertiary" or "the Company") is pleased to announce thatit has signed an earn-in/joint venture agreement with Inmet Mining Corporation("Inmet") regarding Tertiary's Vahajoki copper-gold project in the westernLapland region of Finland. Inmet is a mid-tier TSX-listed Canadian mining company which owns and operates anumber of base metal and gold mines in Turkey, Canada and Europe including thePyhasalmi copper-zinc mine in Finland. In 2006 Pyhasalmi produced 15,000tonnes of copper, 35,700 tonnes of zinc and over 500,000 tonnes of pyrite. Under the terms of the agreement an Inmet Mining Corporation subsidiary, Pyhasalmi Mine Oy ("Pyhasalmi") will be entitled to earn a 75% interest in three mineral claims held by Tertiary Minerals at Vyhajoki by sole fundingexploration costs totalling €1,000,000 before 31 December 2010 (including€150,000 before 31 December 2008 and €500,000 before 31 December 2009). Oncethis total expenditure has been met Tertiary may elect to contribute its 25% offurther expenditure in joint venture with Inmet or convert its interest to a2.5% Net Smelter Return royalty. Tertiary's Vahajoki project comprises three claims and is one of a number ofprojects generated from a regional Iron-Oxide-Copper-Gold ("IOCG") explorationprogramme in northern Finland and Sweden which started in late 2002. Ironmineralisation was first discovered at Vahajoki in 1938 and drilled by threedifferent companies between 1943 and 1982. Numerous discrete iron-oxide(magnetite)-breccia replacement deposits occur in a 1.5km x 3.5km areaassociated with a N-S shear zone cutting metasediments and volcanics of thePerapohja schist belt. Whilst previously considered uneconomic as a standalone iron resource, several drill intersections reported by earlier explorersdemonstrate a clear association of copper and gold with the mineralisation,including : Hole Down Hole Down Hole Down Hole Copper Gold IronNo. From To Interval (%) (g/t) % (meters) (meters) (meters) R29 29.7m 86.9m 57.2m 0.43%Cu 0.46 g/tAu 25.8%FeR30 103.2m 121.3m 18.1m 0.43%Cu 0.49 g/tAu 29.1%FeR31 80.8m 121.5m 40.7m 0.27%Cu 0.33 g/tAu 25.8%Fe Recent academic work has confirmed the mineralisation is of the IOCG type, whichincludes some of the largest copper-gold and uranium deposits in the world,including Olympic Dam in South Australia. Inmet is planning an immediate start to evaluation of the copper-gold potentialat Vahajoki with geophysics and drill testing. Other IOCG projects still held by Tertiary include Ahmavuoma (Cu-Au - N. Sweden)and Sivakkalehto (Iron - Kolari, Finland) where the company has just announcedplans to start drill testing a prime iron ore target at Sivakkalehto (seeannouncement of 5 September 2007). "This agreement is part of Tertiary's initiative to rejuvenate and expand theCompany's activities in its traditional Nordic base", said chairman, Mr PatrickCheetham, today. "It means we are generating new prospects whilst awaiting asatisfactory outcome in Saudi Arabia to our application for renewal of theexploration licence over the Ghurayyah tantalum-niobium project", he added. 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 Note: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. This information is provided by RNS The company news service from the London Stock Exchange