Expansion of Activities

Tertiary Minerals PLC
22 August 2000

 
TERTIARY EXPANDS EXPLORATION ACTIVITIES TO FINLAND AND TO INCLUDE ADVANCED
TECHNOLOGY METALS 
 
 
* Geological Survey of Finland study identifies tantalum and caesium deposits 
 
* Recognises growing importance of electronics as a market for high-value
metals 
 
AIM-listed Tertiary Minerals plc ('Tertiary') announces an expansion of its
mineral activities into Finland where it has made two claim reservations over
mineral deposits containing the rare-metals tantalum and caesium.  
 
Commenting on this development, Tertiary's Executive Chairman Patrick
Cheetham, said 'A move into Finland is logical for a company operating in
Sweden as both countries have similar geology, well defined and attractive
mining codes and a significant dependence on natural resources. The move to
include tantalum and other rare metals in our project portfolio recognises
the growing importance of the electronics and telecommunications industries
as a market for certain high-value special metals.'  
 
Tantalum is a metal with a high melting point used mainly in the production
of electronic components for computers and mobile telephones, and in recent
years the global market has grown strongly. Current production comes from a
particular rock type called 'pegmatite' which is also a common source of the
industrial minerals felspar and quartz used in the ceramics industry.
However, only certain types of pegmatites contain rare-metals. 
 
Caesium is another metal produced from pegmatites. The metal is produced in
limited tonnages for high-value chemical compounds for use in research, and
by the electronic, photoelectric and medical industries. More recently a
major supplier announced it had developed a new application for caesium in
speciality drilling fluids for use by the oil industry. 
 
Tertiary's claim reservations in Finland have been made following the
delivery of a confidential study by the Geological Survey of Finland ('GSF')
which was commissioned by Tertiary to investigate the potential for
rare-metals in Finland.  
 
The first Claim Reservation Area (of 8sq.km.) is in the Kemio pegmatite
region of south-western Finland, on Kemio Island, where previous prospecting
and drilling by the GSF identified a number of pegmatite dykes containing a
number of rare-metals, including tantalum. Work to date has focussed on the
largest of the outcropping dykes, the Rosendal dyke, which has a strike
length of at least 500m. It varies in width from an average of 5m on the
surface, widening to between 12m and 17m wide at 50m depth. The grade of the
mineralisation is of interest for commercial exploration and has been
investigated by the GSF during a previous exploration campaign which
comprises ten surface channel sampling profiles and eight diamond drill
holes. Surface channel samples returned tantalum values between 11 and 3449
g/t Ta2O5, averaging 436 g/t Ta2O5. In the drill-core, grades ranged from
10g/t to 1007 g/t Ta2O5 and averaged 142 g/t Ta2O5, grades being lower than
in the surface partly because they are diluted by a barren quartz zone which
could be selectively rejected if mining takes place.  
 
The GSF has speculated that the Rosendal tantalum-bearing dyke contains 1.3
million tonnes of pegmatite to a vertical depth of 100m below surface. The
grade has not been adequately determined and further exploration is
warranted. The bulk of the pegmatite is made up of felspar and quartz and
these could be co-products or by-products of any future tantalum mining
operation. The felspar has a very low iron content, making it suitable for
use in the ceramic industry. The local infrastructure is excellent and
felspar and quartz are already mined and processed on Kemio island. 
 
The Rosendal dyke is just one of a number of pegmatites in the Kemio Claim
Reservation containing tantalum. There has been no attempt to determine the
tantalum grade and resource potential of these additional dykes.  
 
The second Claim Reservation (of 8.3sq.km.) has been made to cover the well
known Viitaniemi pegmatite in the Erajarvi district of central southern
Finland. This is 100m-130m wide, approximately 10m thick flat-lying
pegmatite. The strike length of the deposit has not been determined but
exceeds 500m. It has been quarried in the past for felspar and quartz and
mineralogical studies have identified significant amounts of tantalum and
caesium and lithium bearing minerals. Access to the area is excellent. 
 
Tertiary's two claim reservations provide it with priority for 12 months when
making formal claim applications in the reservation areas. The Company is
proposing further sampling and data evaluation on the two main targets
identified and also on the numerous other pegmatites occurring in the
reservation areas. 
 
 
Further Information:      
Patrick Cheetham, Executive Chairman,
Tertiary Minerals plc. Tel: [phone] 

Ron Marshman or Ken Gooding,
City of London PR. Tel: [phone]