Tertiary Minerals PLC
14 April 2008
www.tertiaryminerals.com
14 April 2008
DRILLING STARTS ON STORUMAN
FLUORSPAR DEPOSIT IN SWEDEN
• 12 Drill Holes Will Test Deposit Over 2km Known Strike Length And For
Extensions
• Fluorspar Prices Still Rising In Tight Markets
• Applications Submitted For Extended Ground Holding And Additional
Fluorspar Prospect
___________________________________________________________________
Tertiary Minerals plc ('Tertiary' or 'the Company') is pleased to announce that
it starts drilling today on its 100% owned Storuman fluorspar deposit in the
VTM?sterbotten district of Northern Sweden.
The Company has moved quickly to start its evaluation work following acquisition
of the project in January this year. An environmental permit has been obtained
for drilling and initially twelve diamond drill holes are planned. Eight holes
will test the known shallow fluorspar zone along the axis of its 2 km known
extent and four will test for extensions to the NW where some of the highest
grades were reported from drilling programmes carried out in the 1970s.
Mineralisation has not been closed off in any direction from its outcrop.
A second drill rig is scheduled to be mobilised to site later this week to
accelerate the drill programme which aims to confirm the thicknesses and grades
of potentially economic mineralisation and to collect samples for bench scale
metallurgical testwork. The information obtained from the drilling and
subsequent metallurgical testwork will form the basis for a technical and
economic scoping study which the Company aims to complete this summer.
The Company also announces that it is extending its ground holding with
applications for three further exploration licences, two to cover possible
extensions to the known deposit and one elsewhere in the region where a further
untested fluorspar deposit is believed to occur.
The price of fluorspar continues to rise on world markets with some fluorspar
consumers, several of which are based in Europe, facing critical supply
shortages as traditional supplies from China are diverted to meet growing
Chinese domestic demand. China has recently imposed export quotas and export
taxes to discourage export and thus ensure domestic supplies. The latest
reported price for Chinese fluorspar delivered to Europe is $350/tonne.
Background Information
Fluorspar is the commercial name for the industrial mineral fluorite (calcium
fluoride - chemical formula CaF2). It is the main industrial source of fluorine
for the manufacture of hydrofluoric acid and derivative fluorine chemicals
including refrigerants, PTFE (TeflonTM) and aluminium hydrofluoride, a flux used
in the reduction of alumina to aluminium. It is also used as a flux in steel
making, in the ceramics industry and in the manufacture of nuclear fuel (uranium
hexafluoride).
The Storuman fluorite deposit was first evaluated by the Swedish GrTM?nges Group
in the 1970's when drilling, resource evaluation and pilot plant metallurgical
testwork was carried out. Subsequently the GrTM?nges Group was taken over and
broken up and the discovery was largely forgotten.
Storuman is a flat-lying sandstone-hosted replacement deposit. It has been
defined, but not closed off, by 39 diamond drill holes and extends over an area
of at least 2 km by 1.2 km where it is typically 3-10m thick. No recent resource
estimate has been made for the deposit. However, in 1974 GrTM?nges documented an
'ore reserve' of 12.5 million tonnes grading 13.3% CaF2. Of this, 37% fell
within an open-pit designed by GrTM?nges, the rest being reportedly mineable
from underground. This estimate is not compliant with any current resource or
reserve code and should therefore only be used to indicate that the tonnage
potential of this deposit is very large.
Granges drilling did not close off the deposit and it is open to expansion on
three sides along from, and away from, the trace of its outcrop along the side
of a hill. Some of the highest grade drill intersections having been made at the
extremities of the drilled area e.g. :
Drill hole 26 : 3.4 m grading 23% CaF2 from 9.9 m depth*
Drill hole 34 : 15.2 m grading 14% CaF2 from 47.3 m depth*
Drill hole 38 : 3.0 m grading 20% CaF2 from 34.2 m depth*
(* Drilled thicknesses reported are believed to approximate to true
thicknesses).
Metallurgical testwork carried out by GrTM?nges was successful in producing acid
grade (min. 97% CaF2) fluorspar concentrate with very good recoveries.
The deposit is located in an area with well established infrastructure. It is
located adjacent to a sealed highway and only 15km from the regional town of
Storuman which is connected by rail to the City and Port of Umea on the Gulf of
Bothnia.
A conceptual target for the Company is a mining operation producing at least
100,000 tonnes per annum of acid grade fluorspar. The world market for fluorspar
is just over 5 million tonnes per annum of which 65% is for acid grade
fluorspar.
At present, China accounts for over half of world fluorspar production but
exports only 25% of its output. Export tonnages have fallen by more than half
since the year 2000 and this trend is predicted to continue. Furthermore, the
quality of the exported material is both declining and becoming unpredictable.
Further details of the Storuman project, site photos, and schematic drill plans
can be found on the Company's website at:
http://www.tertiaryminerals.com/index.php?page=storuman
Note:
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.
Further info:
Patrick Cheetham, Executive Chairman, Tertiary Minerals plc.
Tel: +44 (0) 1625-626203
Ron Marshman/John Greenhalgh, City of London PR Limited.
Tel: +44(0)20-7628-5518
Jonathan Wright, Seymour Pierce Limited.
Tel: +44(0)20-7107-8000
This information is provided by RNS
The company news service from the London Stock Exchange
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