Exploration Report

Tertiary Minerals PLC
31 October 2000



                            Tertiary Minerals plc


                           www.tertiaryminerals.com



                               QUARTERLY REPORT

                          ON EXPLORATION ACTIVITIES

                    FOR THE PERIOD ENDED 30 SEPTEMBER 2000

___________________________________________________________________________



HIGHLIGHTS


  * Mineral exploration during the summer of 2000 has advanced a number of
    projects to the drilling stage .


  * Project numbers increased from 6 to 11 and commodity spread has been
    increased to include Platinum Group Metals and high tech metals tantalum
    and caesium :


                         WINDFALL      Preliminary evaluation of Boliden drill
                         core archive identifies continuations of zinc-silver 
                         mineralisation, confirms second parallel zone at 
                         Sortarnan and defines additional drill targets.


                         KUKKOLA      Ground geophysics confirms and relocates
                         drill target for Platinum Group Metals in Kukkola
                         layered mafic complex.


                         DJURAGRUVAN      Project expanded to include
                         Gruvberget mine where drill intersections of 4.25m at
                         14% zinc and 7.2m at 9.9% zinc require follow up.

                         Boulders with up to 20% zinc found over 3km strike
                         length.


                         JUNIPER RIDGE Geochemical surveys define drill target
                         for gold near the Enasen gold copper mine with values
                         up to 189ppb gold in surface till.


                         Airborne Geophysical survey commenced over 100 sq.km.
                         surrounding the Enstern zinc prospect.
                                                               

                         FINLAND     Company expands activities to Finland and
                         into the high tech metal tantalum with the acquisition
                         of two tantalum mineralised pegmatites.


INTRODUCTION


The Company is introducing a quarterly reporting practice in order to increase
the level of public information available on the Company's exploration
activities and to provide a seamless information base to support its
subsequent press releases.


COMPANY EXPLORATION IN SWEDEN


WINDFALL PROJECT (zinc-silver) - Tertiary Minerals 75 -100%


Evaluation of Boliden Drilling Data


During the quarter the Company obtained access to a large and valuable archive
of drill core from 105 drill holes completed in the 1980's by the Boliden
mining company. This archive has a replacement value to the Company of over £
700,000 (see release dated 3 August 2000).


A preliminary programme of 'scout' logging has been completed over this
archive drill core and a large number of variably mineralised intersections
have been recorded. A programme of detailed logging and core-resampling is now
planned to quantify the thickness and grades of mineralisation intersected by
these drill holes.


An integration of the Boliden scout logging data with the Company's own drill
data base allows the following preliminary conclusions to be drawn:


  * the existence of a second parallel zone of mineralisation at Sortarnan
    postulated by the Company in its release of June 20 is confirmed.


  * The strike length of the mineralised horizon at Sortarnan can be
    extended by at least 200m to the south (to a total of at least 300m),
    although the grade of mineralisation is visually variable and not yet
    assayed.


  * mineralisation at the Vindfall prospect is severely disrupted by
    faulting, making interpretation difficult, based on the limited scout
    data.


  * mineralisation at Vindfall has not been closed off, either to the
    north-east or south-west of the known 500m long main zone at Vindfall,
    with promising intersections of mineralisation at the south-west end of
    the mineralisation offering encouragement for a continuation of
    mineralisation in this direction.


A programme of follow-up drilling is scheduled for December/January 2000, by
which time it is expected the winter freeze will allow drill rig access over
swampy ground.


MMI Geochemical Sampling


During the quarter the Company completed a large geochemical sampling
programme covering the Vindfall & Sortarnan deposits, the c. 1km strike extent
between these two deposits and approximately 1km along strike to the
south-west and north-east respectively. A total of 408 surface samples over a
strike length of approx. 5km on a 40m by 200m grid.


Samples have been analysed using the proprietary Mobile Metal Ion (MMI)
technique which aims to see below the transported glacial deposits which
blanket the area, to directly detect mineralisation.


The two strongest anomalies occur adjacent to and south of known
mineralisations and have geochemical levels that would normally be taken to
indicate significant in-situ mineralisation below. However, their position
strongly suggests they may reflect sulphide minerals in the till originating
from clastic dispersion by ice away from the known deposits . Further
evaluation of these anomalies is in progress.


Known mineralisations give only a subdued MMI response but, perhaps
significantly, similar and stronger responses are found along strike to the
south-west of Vindfall. These will be subject to infill sampling to assist in
drill targeting in this favourable area.

KUKKOLA PROJECT (Platinum Group Metals - 'PGM's') - Tertiary Minerals 100%


During the quarter Tertiary applied for a new exploration permit to search for
PGM's, nickel and copper at Kukkola in northern Sweden, near the Finnish
border. Economic deposits of these metals are often associated with
electrically conductive sulphide minerals in layered mafic-ultramafic rocks.


The primary target at Kukkola is an untested geophysical anomaly, an
electrical conductor at least 500m long, defined by a 1980's exploration
programme carried out by a Swedish State prospecting company. The anomaly is
associated with the Kukkola layered mafic-ultramafic complex.

Although outcrop is poor within the permit area, the target is believed to lie
in the Archaean basement immediately below the Kukkola Complex and, as such,
its setting is broadly analogous to the 'offset' platinum mineralisation
associated with the Portimo complex in Finland. The Portimo complex hosts a
recently announced resources of 2.9 million ounces of platinum+palladium+gold
and is held by a Gold Fields Ltd-Outokumpu Oyj joint venture.


During the quarter the Company carried out a ground geophysical survey. This
has confirmed and re-located the previously reported electrical conductor. A
man-made ('cultural') explanation for the anomaly has also been ruled out.


It is planned to drill test the anomaly in December, after the freeze, as
access will be required over swampy ground.


DJURAGRUVAN PROJECT (zinc-silver +/--gold) - Tertiary Minerals 100%


During this last quarter, exploration work at Djuragruvan has led to a
significant enlargement of the permit area and an increase in the priority
placed on this project.


Following the expiry of a private company's mining rights in the area, permits
have been applied for to cover the historic Gruvberget mining area which lies
to the north of and adjacent to Djuragruvan.


Mineralisation at Gruvberget occurs in two main zones. At Gruvberget South,
zinc-copper-lead-silver-gold mineralisation occurs in association with
north-south striking limestone-skarn horizon. A previous explorer reported
200,000 tonnes of mineralisation containing 7.2% zinc, 2.3% lead and 69 g/t
silver. More recently a very shallow drilling programme was carried out by the
private company and this led, in 1989, to it mining 40,000 tonnes of ore at a
grade of 5.1% zinc, 1.9% lead and 90g/t silver from a shallow open pit. In
addition to contained silver values, the mineralisation is reported to contain
gold credits with values of between 0.16-1.75 g/t gold, where limited gold
assays are reported. Significantly, mineralisation appears to continue at
depth and is open along strike with a number of the shallow drill holes having
intersected mineralisation beneath the current pit floor. Better intersections
are tabulated below.


Significant drill intersections reported for Gruvberget South, beneath current
open-pit :

Hole   Local Grid     Interval       Intersected     %     %     %      g/
No.    Coords                  To    Length          zinc  lead  copper tonne
                      From
                                                                        silver

DBH 18 48725 E        24.15m   31.28m 7.23m           9.9   3.3   0.6    152
       20630 N

GSD-02 48691 E        7.10m    16.30m 9.20m           5.3   2.1   0.2    58
       20648 N

Inc.                  9.30m    10.80m 1.50m           21.2  8.8   0.1    183

GSD-06 48710 E        15.70m   22.30m 6.60m           5.2   1.8   0.4    85
       20651 N

Inc.                  17.90m   20.15m 2.25m           8.2   2.2   0.9    118

GSD-32 48675 E        9.20m    13.45m 4.25m           14.0  2.5   0.1    98
       20695 N

DBH 13 48773 E        22.00m   37.90m 15.90m          5.5   2.1   0.3    125
       20690 N

Inc.                  26.85m   34.00m 7.15m           9.7   3.5   0.3    204

GSD 23 48709 E        10.95m   12.10m 1.15m           24.6  12.7  0.0    793
       20710 N


At Gruvberget North, old workings occur on a zone of zinc mineralisation which
extends over a strike length of some 300m. Limited shallow drilling into this
zone has returned a number of narrow intersections of generally low-grade zinc
mineralisation. This zone of mineralisation appears to be open ended. The
mineralisation at Gruvberget North is different in style to that at Gruvberget
being silica rich in a mafic volcanic host rock.


Two field reconnaissance programmes have been undertaken during the quarter.
Examination of the Djuragruvan mine workings, the original target for the
Company (see release dated 26 January 2000) suggest that they are developed on
minor mineralisation of little economic significance.


However, prospecting around Djuragruvan and north up to Gruvberget has
discovered a train of zinc-lead rich ore boulders of similar geological
character to the mineralisation at Gruvberget North. Recent searches have
identified records of other mineralised boulders within this boulder train.
With assays up to 20% zinc, this boulder train has been found to stretch at
least 3km south from Gruvberget along the projected strike of mineralisation
and parallel to the last prevailing ice direction.


Whilst it is possible that all of these zinc-rich boulders may have travelled
with the ice 3km from the Gruvberget mine, the relatively large size of the
southern most boulders and the high value of lead in till samples taken near
the boulders (up to 0.5%Pb in soil) suggests the possibility of a local source
and therefore the possibility of additional zones of in-situ mineralisation
within the 3km long zone striking south from Gruvberget.


Historic plans show open-ended geophysical anomalies associated with both
zones of mineralisation at Gruvberget. The Company has purchased an archive of
airborne geophysical data for the project area and has contracted Geovista, a
Swedish consulting group to provide a detailed interpretation of the data to
identify additional targets for exploration.


JUNIPER RIDGE PROJECT (base metals & gold) - Tertiary Minerals 100%


Last quarter the Company completed first pass geochemical sampling on four
separate targets defined by regional geochemical exploration as detailed in
its release of 9 August 2000.


Strong and well defined anomalies were generated at Enasen and
Grundviksberget, with only weak anomalies being found at Kolaberget and
Kroktjarn.


Enasen


This target surrounds the now closed Enasen mine in central Sweden from which
Boliden extracted 1.7m tonnes of gold-copper ore between 1984 and 1991.


The initial sampling programme defined a strong and coincident gold and copper
anomaly in surface till and MMI soil samples within a few hundred meters of
the existing open pit (see release dated 9 August 2000). This anomaly extends
along the NW-SE ice direction over a number of adjacent sampling lines.


A follow up programme was carried out during the quarter. 190 surface samples
were taken for analysis to infill the existing anomaly. The results confirm
the original anomaly, and importantly, have defined the head of the anomaly in
the up-ice direction which is conventionally taken to indicate the proximity
of mineralisation in-situ.

The Company plans to drill test this anomaly in as soon as the necessary
permissions are in place.

Grundviksberget

The initial sampling programme at Grundviksberget defined areas strongly
anomalous in arsenic and gold, with values up to 80ppb gold against a
background of 5ppb gold.


A follow up infill and extensional till sampling programme has been undertaken
and results are awaited.


Bodsjo Regional Airborne Geophysical Survey


As a part of a larger survey (the 'Bodsjo' survey) being undertaken by the
Norwegian Geological Survey as contractor for the local County
Administrations, approximately 100 sq.km. within the western half of the
Company's Juniper Ridge project area is currently being flown with a detailed
helicopter borne magnetic and electromagnetic (EM) geophysical survey.


The Bodsjo survey aims to identify exploration targets for volcanogenic
massive sulphide mineralisation (zinc, copper and lead) and, of particular
interest, covers the Company's Enstern base metal prospect.


The survey is being funded by the County Administrations of Jamtlands and
Vasternorrlands following suggestions by Tertiary Minerals as to initiatives
that could be taken to encourage mineral exploration activities in those
counties. It will result in a significant cost saving for the Company.


FLINTEN PROJECT (Nickel-Copper-Platinum Group Elements) - Tertiary Minerals
100%


Tertiary has also applied for an exploration permit at Flinten in
south-central Sweden where PGM's are a grass-roots target in a small layered
intrusive Complex.


No work was carried out during the quarter.


BOLIDEN EAST PROJECT (gold) - Tertiary Minerals 100%


A geochemical till sampling programme was carried out during the quarter to
investigate a target area to the east of the Boliden mine which, up to 1965,
produced 4 million ounces of gold.


A total of 56 till samples and 19 MMI samples were taken. Results are awaited.

LAKE HILL PROJECT (Nickel-Copper- Platinum Group Metals) - Tertiary Minerals
100%

Previous work by the Company has identified a geophysical anomaly comprising a
coincident magnetic and electromagnetic anomaly associated with the margin of
a large gabbroic intrusion in the Company's exploration permit.


A more detailed interpretation of this anomaly has been contracted to Geovista
and results area awaited.


ROCKY BAY PROJECT (gold) - Tertiary Minerals 75%


Geochemical exploration carried out earlier this year has defined a weak
anomaly which is a low priority for follow up. No work was carried out during
the quarter.

KARLSATER PROJECT (copper-gold) - Tertiary Minerals 100%


This project was acquired to follow-up a prospector's discovery of an outcrop
of copper-gold mineralisation which averaged 5% Cu and 1g/t gold.


Samples collected by Tertiary Gold Ltd have returned much lower values and
this is now a low priority project.


GREY MOUNTAIN PROJECT (gold) - Tertiary Minerals 100%


The Grey Mountain project was originally acquired to test for gold
mineralisation in association with a previously defined body of weak porphyry
copper mineralisation.


A programme of re-sampling and assaying carried out on archived drill core
returned only low gold values and consequently the exploration permit was
allowed to expire without renewal.



COMPANY EXPLORATION IN FINLAND

On August 22, the Company announced the expansion of its mineral activities
into Finland where it has made two claim reservations, at Viitaniemi and
Rosendal, over pegmatite bodies containing the rare-metals tantalum and
caesium. A formal claim has since been lodged by the Company at Rosendal.


The move to include tantalum and other rare metals in the project portfolio
recognises the growing importance of the electronics and telecommunications
industries as a market for certain high-value special metals.


A reconnaissance field visit was made during the quarter to examine the
pegmatite deposits and to plan for follow up exploration. This is expected to
comprise further drilling and metallurgical testwork to establish recoveries
of tantalum and other potential by-products.



Patrick L Cheetham
Executive Chairman