Resource update, Ghurayyah
Tertiary Minerals PLC
19 April 2006
www.tertiaryminerals.com
19 April 2006
SRK QUANTIFIES URANIUM & YTTRIUM RESOURCE AT
GHURAYYAH TANTALUM-NIOBIUM DEPOSIT
• Resource contains 120 Million Pounds Of Uranium Oxide And Over 1 Billion
Pounds Of Yttrium Oxide
• Preliminary Feasibility Study Will Examine Recovery Of These
Additional Metals
• Tantalum Market To Benefit From Sharp Increase In World Mobile Demand -
Nokia Estimated a 24% Rise In 2005
___________________________________________________________________
Tertiary Minerals plc ('Tertiary' or 'the Company') is pleased to announce an
updated resource estimate to quantify the uranium and yttrium content of its
Ghurayyah tantalum-niobium (-zircon-uranium-yttrium) deposit in Saudi Arabia.
SRK Consulting (UK) Ltd has now estimated the Inferred Mineral Resource at
Ghurayyah to be 385 million tonnes grading 245 grammes per tonne (g/t) tantalum
pentoxide (Ta205), 2,840 g/t niobium pentoxide (Nb205), 8,915 g/t zirconium
oxide (ZrO2), 140 g/t uranium oxide (U3O8) and 1,270 g/t yttrium oxide (Y2O3),
all of which is potentially open-pittable.
This represents nearly 120 million pounds (lbs) of U3O8 and over 1 billion lbs
of Y2O2 - in addition to 208 million lbs of Ta205, over 2.4 billion lbs of Nb205
and 7.6 billion lbs of ZrO2. The resource remains open below 250m.
Previous Mineral Resource estimates have been made only in respect of tantalum,
niobium and zircon contents, but uranium and yttrium were recovered alongside
tantalum, niobium and zircon in previous testwork.
Given the potential for recovery of uranium and yttrium, and the increasing
demand, price and more favourable outlook for uranium in particular, the Company
will consider the recovery of these two metals as a part of the preliminary
feasibility studies now in progress. These studies are being funded by the
Company's Saudi industrial joint venture partners as part of a recently agreed
$US 7 million funding package.
The Company's scoping study for development of Ghurayyah considered mining at an
initial rate of 1.5 million tonnes of ore per year. The uranium and yttrium
contents of this ore would be 466,000 lbs per year of U308 and 4.2 million lbs
of Y203 per year. Recoveries have yet to be estimated.
The spot uranium price is currently over $40/lb. United States Geological Survey
published commodities information gives a price estimate for yttrium oxide in
2005 of between US$4.5/lb and US$38.5/lb depending on parcel size. Yttrium is
used in phosphors for television and computer monitors and in various other
electronics and alloying applications.
The Company notes the recent results reported by Nokia whose estimates show
World mobile device demand, which accounts for a large part of tantalum demand,
to be up 24% in 2005. Nokia reports that sales volumes are now growing at rates
last seen in the electronics boom in 2000.
Executive Chairman, Mr. Patrick Cheetham said 'Given the favourable long term
outlook for uranium and its potential value at Ghurayyah it is logical we
consider uranium recovery, and possibly yttrium too. This pushes the
metallurgical process route towards higher-value, more refined tantalum and
niobium products with a positive impact on revenues, albeit at higher capital
and operating cost. The recent results from Nokia are very encouraging for
further growth of the tantalum market.'
Further information please contact:
Patrick Cheetham, Tertiary Minerals plc. Tel: +44 (0)1625-626203. Mob: +44 (0)
7767-458751
John Greenhalgh/Ron Marshman, City of London PR Ltd. Tel: +44 ( 0)20-7628-5518
Notes:
1. Information in this report relating to the estimation of Mineral
Resources is based on data compiled by SRK Consulting (UK) Ltd, who act as a
consultant to the Company. The estimation was supervised by Mr Martin Pittuck
whom SRK consider to satisfy the criteria for a Competent Person in accordance
with the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (the JORC Code, 2004). Mr Pittuck has in excess of
five years Mineral Resource experience relevant to the style of mineralisation
and type of deposit under consideration and is a full-time employee of SRK. SRK
consents to the inclusion of the data in the form and context in which it
appears.
2. Tertiary Minerals plc currently holds a 100% interest in, and is the
operator of, the Ghurayyah exploration licence. The Company has, therefore, a
100% attributable interest in the Inferred Mineral Resource being reported but
this will reduce to 50% if, in the future, Bankable Feasibility studies are
fully funded by the current Joint Venture partners (for further details see
release dated 30th March 2006).
3. 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.
4. A 'Mineral Resource' is a concentration or occurrence of material of
intrinsic economic interest in or on the earth's crust in such form, quality and
quantity that there are reasonable prospects for eventual economic extraction.
Mineral Resources are subdivided, in order of increasing geological confidence
into Inferred, Indicated or Measured categories. The Inferred Mineral Resource
Estimate being reported is based on interpolation and extrapolation of drill
hole grades into a block model and wire-frame solid using an inverse distance
squared algorithm. There was no capping of any anomalous high-grade values and a
zero-cut off grade was applied.
This information is provided by RNS
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