Drill Update - Finland Gold Project

RNS Number : 0322F

Tertiary Minerals PLC

18 April 2011

 

Tertiary Minerals plc 

www.tertiaryminerals.com

("Tertiary" or "the Company")

18 April 2011

 DRILLING UPDATE - FINLAND GOLD PROJECT

Results indicate potential for significant gold-bearing sulphide mineralised zone.

Tertiary Minerals plc, a diversified mineral explorer and developer building a significant strategic position in the fluorspar sector, is pleased to announce the results of its first drill programme at its 100% owned Kiekerömaa gold project in the Lappland Greenstone Belt in Northern Finland.

The drilling programme, whilst affected by low core recovery, has indicated the potential for a significant gold-bearing sulphide mineralised zone. Geophysics and follow-up drilling is being planned.

Key points:

·     Eight diamond drill holes completed over 300m strike length for total of 619m of drilling.

·     Core loss in shallow holes suggests:

Ø deep weathering of hydrothermally altered rocks associated with extensive gold-mineralised zone, and

Ø mineralised zone not meaningfully sampled in the majority of shallow holes.

·     Deeper holes with good core recovery gave best result: 4.55m grading 3.62g/t gold from 89.90m within thick sulphide-mineralised zone - 50.55m grading 0.49g/t gold from 74.25m to the base of the hole in 11KAD-006 at the western edge of the area tested.

·     Geophysics planned to outline the extent of the gold-bearing sulphide zone and to locate further drill targets.

Commenting on today's news, Patrick Cheetham, Executive Chairman, said "Although too early to talk in terms of a significant discovery, it is unusual to find such deep weathering in this part of Finland and our experience suggests this reflects the preferential weathering of hydrothermally altered and sulphide mineralised rocks which we now know to be associated with the gold mineralisation at Kiekerömaa.

"It's an exciting and intriguing prospect and we will be following up with geophysical exploration to map out the extent of the sulphide mineralised system, and further drill testing using more effective drilling techniques."

ENQUIRIES

Tertiary Minerals plc                                                                       Tel:  [phone]

Patrick Cheetham, Executive Chairman                                            www.tertiaryminerals.com

Seymour Pierce Limited                                                                  Tel: [phone]

Stewart Dickson (Corporate Finance)

Jeremy Stephenson (Corporate Broking)                                          

Yellow Jersey PR Limited                                                               Tel: [phone]

Dominic Barretto                                

Drilling Update

A plan showing the location of drill holes will shortly be available on the Company's website at http://www.tertiaryminerals.com/kiekeromaa.html

The Kiekerömaa prospect is a part of the wider Kaaresselkå gold project, 20km to the east. It is located within the Lappland Greenstone Belt which hosts a number of advanced gold projects and two operating gold mines including the multi-million ounce Kittila gold mine operated by Canadian major, Agnico Eagle Mines.

The Kiekerömaa prospect was explored by Outokumpu Mining Oy in the 1990s when six shallow reverse circulation drill holes were completed to follow up an area of gold-anomalous soils found during regional soil sampling. Encouraging gold-bearing drill intersections were made by Outokumpu but were not followed up in that period of low and declining gold prices.

Outokumpu drilled using the reverse circulation drilling method. This drilling technique is no longer widely available in Finland where diamond drilling is more commonly used. The Company has no information on the level of sample recovery and therefore the reliability of assay results achieved by Outokumpu using reverse circulation drilling,

Mineralisation at the Kiekerömaa project is located close to the contact zone between diabase and sedimentary rocks. Rocks are strongly altered with albite, carbonate, fuchsite, tourmaline and quartz veining. Pyrite is reported to be the dominant sulphide mineral associated with gold mineralisation at Kiekerömaa.

Drill Hole 11KAD-001 was drilled at an angle of -45^o to the south to undercut 1997 drill hole KKR3 which intersected 2m grading 7.4g/t gold from 33m down-hole depth.

11KAD-001 was abandoned at 55.1m down-hole depth. No core was recovered and no sampling was possible. The current interpretation is that this hole was drilled down a major shear zone now filled with glacial till.

Drill Hole 11KAD-002 was drilled some 250m west of 11KAD-001 at an angle of -45^o to the north to undercut 1997 drill hole KKR4 which intersected 1m grading 1.5g/t from 50m down hole within a broader interval of 16m grading 0.39g/t gold from 38m to the bottom of the hole.

No significant intersections were recorded.

Drill Hole 11KAD-003 was drilled 20m north of 11KAD-002, at an angle of -45^o to the north, in between and parallel to 1997 drill hole KKR 4 (see above) and KKR 2 (which intersected 5m grading 5.8 g/t gold from 17m deep).

Core recovery in this hole was very poor. The best assay result was from a 2.85m interval down hole grading 3.93g/t gold from 32m down hole but core recovery in this section was only 18% and in the preceding 3m section no core was recovered at all. The average core recovery for this hole was just 56% and so no reliance can be placed on these assay results which may overstate or understate the result depending on the behaviour of gold in the deposit on weathering and during the drilling process.

Drill Hole 11KAD-004 was drilled at an angle of -45^o to the north, 40m east of 11KAD-002 on a traverse previously untested by Outokumpu. Due to poor core recovery the hole was abandoned at 67m depth. The average core recovery was 52% and as low as 7% in the target zone. No significant gold assays were returned but the samples cannot be considered representative.

Drill Hole 11KAD-005 was drilled at -45^o to the north, 15m to the south of and at a steeper angle (-60^o) than 11KAD-004. Core recovery was acceptable and a narrow gold mineralised interval was intersected (see table below).

Drill Hole 11KAD-006 was drilled at -60^o to the north, 35m east of 11KAD-002 and 25m south of KKR1 (which intersected three individual 1m zones of +1g/t at shallow depth). Core recovery in this hole was very good and a significant gold intersection was returned - 4.55m grading 3.62g/t gold from 89.90m within a thick sulphide-mineralised zone of 50.55m grading 0.49g/t gold from 74.25m to the base of the hole.

Drill Hole 11KAD-007 was drilled at -60^o to the north, 20m east of 11KAD-006. Core recovery in this hole was good and a number of samples containing anomalous gold were encountered towards the end of the hole.

The final drill hole, 11KAD-008, was drilled 80 to the south of 11KAD-001 in an attempt to approach the same target zone from the south. The hole was abandoned at 91.5m and just 0.45m of core was recovered from a 12m thick zone centred at the target depth. Samples from this zone cannot be considered representative.

Table of significant results:

DRILL HOLE	Depth (m)	Status	From (m)	To (m)	Intersected Thickness	Grade (grammes/tonne gold)	Average Core Recovery
11KAD-001	55.10	Abandoned	0.00	48.50	No assays		0%
11KAD-002	98.00	Completed	0.00	98.00	No significant results		97%
11KAD-003	63.90	Completed	32.2	35.05	2.85m	3.93g/t	18%
11KAD-004	67.00	Abandoned	0.00	67.00	No significant results		52%
11KAD-005	124.55	Completed	53.60	54.50	0.90m	2.31g/t	100%
11KAD-006	124.80	Completed	74.25	76.05	0.80m	1.30g/t	100%
			85.85	86.20	0.35m	2.10g/t	100%
			91.75	96.30	4.55m	3.62g/t	100%
			74.25	124.80 (EOH)	50.55m	0.49g/t	100%
11KAD-007	137.15	Completed			No significant results		95%
11KAD-008	91.5m	Abandoned			No significant results		35%

Future drilling at Kiekerömaa will make use of more effective drilling techniques to overcome the core recovery problems that have affected the initial programme.

The information in this release has been compiled and reviewed by Mr. Patrick Cheetham (MIMMM, MAusIMM) who is a qualified person for the purposes of the AIM Guidance Note for Mining Oil & Gas Companies issued on March 16, 2006.   Mr. Cheetham is a Member of the Institute of Materials, Minerals & Mining and also a member of the Australasian Institute of Mining & Metallurgy.

NOTES TO EDITORS

Background to the Company

Tertiary Minerals is an AIM-quoted mineral exploration and development company building a significant strategic position in the fluorspar sector. Fluorspar is an essential raw material in the chemical, steel and aluminium industries and Tertiary controls an estimated four million tonnes of fluorspar across its two Scandinavian projects (Storuman in Sweden and Lassedalen in Norway).

A European Commission report recently named fluorspar as one of its 14 'critical mineral raw materials' for which a possible supply shortage would represent a substantial economic threat.

The Company also has interests in exploration and development of Gold, Iron, Tantalum, Niobium and Rare-earths in Finland and Saudi Arabia. Shares in the Company trade on AIM and also on PLUS Markets (ticker symbol 'TYM').

For further information: www.tertiaryminerals.com

 

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