TIDMTYM
RNS Number : 0059U
Tertiary Minerals PLC
19 October 2017
19 October 2017
Tertiary Minerals plc ("Tertiary" or "the Company")
Corporate and Operational Update
Tertiary Minerals plc, the AIM traded company building a
strategic position in the fluorspar sector, is pleased to provide
an operational update for its key fluorspar projects, royalty
interests and project acquisition activity. The Company is
developing its three key fluorspar assets where more than 13 Mt of
contained fluorspar (CaF(2) %) has been defined - JORC classified
Indicated and Inferred.
Commenting today, Managing Director, Richard Clemmey said:
"During recent months management has been progressing the Storuman
project in Sweden through the Mine permitting process.
Metallurgical testwork at the MB project in Nevada is progressing
and is aimed at producing a commercial grade mica product alongside
commercial grade acid-spar. Management is also focused on
acquisition opportunities in the fluorspar and industrial minerals
sector. Advanced discussions and technical due diligence are in
progress and we look forward to releasing further news in due
course."
Highlights:
Storuman Fluorspar Project, Sweden
-- The re-assessment process of the Exploitation (Mine) Permit
by the Swedish Mining Inspectorate is progressing
-- The Swedish Mining Inspectorate requested additional
information relating to the original EIA, which the Company
provided in May 2017
-- The Mining Inspectorate confirmed the additional information
is sufficient and subsequently re-invited all stakeholders to
comment on the application - current deadline for responses being
27 October 2017
MB Fluorspar Project, Nevada, USA
-- Scoping Study level bench scale metallurgical testwork
progressing at SGS Lakefield in Canada with the aim of producing
commercial grade acid-spar
-- Testwork scope includes the production of commercial grade
mica as a secondary product - potential valuable upside
Lassedalen Fluorspar Project, Norway
-- The seasonal environmental testwork required as part of the
due diligence for the purchase of land and old fluorspar mine
workings from Hydro has been completed by Niva and data review now
underway
-- Following satisfactory environmental data review, the Company
is planning to progress with the required technical and legal due
diligence prior to taking ownership of the Hydro land position
Finland Gold Projects - Aurion Resources
-- The 83,072 shares the Company received as part consideration
have increased in value from GBP85,000 to more than GBP140,000
(based on current mid-market price and exchange rates)
-- Kinross Gold Corporation has recently completed a private
placement with Aurion resulting in Kinross owning 9.98% of the
issued and outstanding share capital of Aurion
-- Tertiary retain pre-production and production royalty interests in the projects
Potential Acquisition
-- Advanced discussions and technical due diligence are underway
for shortlisted fluorspar project
-- Project has the potential to be near-term revenue generating
Customer Engagement
-- The Company continues to engage with key end-users and
fluorspar traders, providing regular project updates, technical and
commercial co-operation. Further discussions to be held at the
upcoming global fluorspar conference on 23-25 October 2017
Enquiries
Tertiary Minerals plc
Richard Clemmey, Managing
Director
Patrick Cheetham, Executive
Chairman +44 (0) 1625 838 679
SP Angel Corporate Finance
LLP
Nominated Adviser & Joint
Broker
Ewan Leggat/Lindsay Mair +44 (0) 20 3470 0470
Beaufort Securities Ltd
Joint Broker
Elliot Hance +44 (0)20 7382 8300
Further Information
Background
Fluorspar is classified as a critical raw material by the
European Commission (high risk of supply shortage and consequent
impact on the economy) and the USA also considers fluorspar to be a
strategic mineral. Due to its unique chemical properties, lightest
of the halogens, it is largely irreplaceable and is used in a wide
range of applications. Key uses include:
-- Refrigeration - new generation of zero ozone depleting
potential (ODP) and very low global warming potential (GWP)
refrigerants, hydrofluoroolefins (HFO's) - driven by environmental
legislation, most recently the Kigali Amendment: 170 nations agreed
to phase down low ODP, high GWP Hydrofluorocarbons (HFCs)
-- Flux for Energy reduction in the steel and aluminium industry
-- Emerging uses - e.g. fluoropolymers in lithium batteries
The Company continues in its quest to become a reliable
long-term and competitive supplier of high quality fluorspar to
world markets through the acquisition and development of fluorspar
deposits located close to established infrastructure and key
markets in stable, democratic and mining friendly
jurisdictions.
Storuman Fluorspar Project, Sweden
The Company's 100% owned Storuman project is located in north
central Sweden where the Company has defined a large near-surface
fluorspar JORC compliant Mineral Resource:
Classification Million Tonnes Fluorspar (CaF(2)
(Mt) %)
---------------- --------------- ------------------
Indicated 25.0 10.28
---------------- --------------- ------------------
Inferred 2.7 9.57
---------------- --------------- ------------------
Total 27.7 10.21
---------------- --------------- ------------------
The Company submitted its Exploitation (Mine) Permit application
in July 2014 to the Swedish Mining Inspectorate and following an
extensive consultation process the 25 year Exploitation (Mine)
Permit was granted on 18 February 2016.
However, as a consequence of the Supreme Court's decision to
overturn the grant of a third-party mining company's mining permit
in the south of Sweden (Norra Karr Mine Permit - rare earth element
project, owned by Leading Edge Minerals) the government returned
the Storuman Mine Permit case, along with many other cases, back to
the Swedish Mining Inspectorate for re-assessment in December 2016.
The re-assessment is intended to consider the impact of mining in
the concession area on a wider surrounding area. Earlier this year
the Swedish Mining Inspectorate requested additional information
from the Company relating to the original Environmental Impact
Assessment (EIA) and the wider area. The Company provided the
additional information to the Swedish Mining Inspectorate in the
form of an updated EIA in May 2017. The additional information was
accepted by the Mining Inspectorate which has subsequently invited
all stakeholders to provide comments on the application and
additional information, with the current deadline for responses
being 27 October 2017. Further updates will be provided as and when
available, but it is worth noting that the Company has no influence
on the speed at which the re-assessment of the grant of the mining
permit is being processed by the Authorities.
Whilst the process is slow and frustrating, the Company
continues to co-operate with the Mining Inspectorate and believes
that the Mine Permit application and EIA are of a very high
standard. The Company also continues to have the support of the
majority of key stakeholders at Storuman, with the notable
exception of the Sami reindeer herding community, and remains
hopeful of a positive resolution to this in 2017.
Any ratification of the grant of the mining concession will,
however, be open to appeal and the Company will therefore not spend
any further money on exploration or development of Storuman until
the matter is resolved.
MB Fluorspar Project, Nevada, USA
The MB Property comprises 146 contiguous mining claims covering
an area more than 2,800 acres and is located 19km south-west of the
town of Eureka in central Nevada, USA. Four phases of drilling
completed by the Company have resulted in the definition of a large
fluorspar JORC compliant Mineral Resource:
Classification Million Tonnes Fluorspar (CaF(2)
(Mt) %)
---------------- --------------- ------------------
Indicated 6.1 10.8
---------------- --------------- ------------------
Inferred 80.3 10.7
---------------- --------------- ------------------
Total 86.4 10.7
---------------- --------------- ------------------
The initial metallurgical testwork is now underway at SGS
Lakefield to ascertain if commercial grade acid-spar and commercial
grade mica can be produced from the ore. This is the first critical
step in the preparation of a Scoping Study for the project. The
results of the testwork will determine the next steps in the
development of the MB fluorspar projects. The ore presents some
metallurgical challenges and the Company has therefore engaged the
services of one of the world's leading fluorspar metallurgists to
assist with the testwork.
Lassedalen Fluorspar Project, Norway
The Lassedalen Fluorspar Project is located near Kongsberg, 80km
to the south-west of Oslo in Norway. The Company has defined a
small, higher grade fluorspar JORC compliant Mineral Resource on
the property:
Classification Million Tonnes Fluorspar (CaF(2)
(Mt) %)
---------------- --------------- ------------------
Inferred 4.0 24.60
---------------- --------------- ------------------
A key landowner for the Company's Lassedalen fluorspar project
is the global aluminium company, Hydro. In November 2016 Tertiary
and Hydro entered into heads of terms whereby Tertiary will acquire
the land (for 1 Norwegian Krone) and historic mine workings from
Hydro following successful due diligence and purchase agreement
completion. The seasonal environmental testwork required as part of
the due diligence has recently been completed by Niva and data
review is underway. Following satisfactory data review the Company
is planning to progress with the technical and legal due diligence
prior to taking ownership of the Hydro land position.
Finland Gold Projects - Aurion Resources
In March 2017, the Company successfully completed the sale of
two legacy gold assets, Kaaresselkä and Kiekerömaa in Finland, to
TSX-V listed Aurion Resources Ltd. The Company was paid GBP100,000
initial consideration for the projects, GBP15,000 in cash and
GBP85,000 in Aurion Shares. The Company also retains a
pre-production and production royalty interest in the projects and
therefore providing the opportunity for potential income in the
future.
Aurion has recently announced the discovery of a new bonanza
gold zone, called Aurora at its 100% owned Risti project. The
Kaaresselkä project is located in the same regional deformation
zone, to the south of Risti where 133 rock grab samples collected
from predominantly large and angular subcropping quartz-tourmaline
blocks assayed from nil to 1563.5 g/t Au, including 36 samples
which assayed greater than 31 g/t Au (1 ounce per tonne). The
average grade of all 133 samples is 74.3 g/t Au. In September this
year Kinross Gold Corporation completed a private placement with
Aurion resulting in Kinross owning 9.98% of the issued and
outstanding share capital of Aurion.
This has resulted in an increase in the value of the Aurion
Shares held by Tertiary by more than GBP55,000, the current value
being more than GBP140,000 (based on current mid-market price and
exchange rates). The Company believe that Aurion is in a strong
position to develop the Kaaresselkä and Kiekerömaa projects in the
future.
Potential Acquisition
In January this year the Company updated the market on its
business strategy and, whilst the Company remains committed to its
fluorspar business and the development of its fluorspar assets, it
has, since then, been reviewing complementary project acquisition
opportunities capable of generating revenue and profits in a
shorter timescale. Finding quality projects is not an easy task,
but following the shortlisting of a number of projects for further
evaluation the Company is engaged in detailed discussions with the
owners of one such fluorspar project and technical due diligence
has started; however there is no guarantee that the deal with be
successfully executed at this point.
Notes to Editors
Tertiary Minerals plc (ticker symbol 'TYM') is an AIM-traded
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. Tertiary controls two significant Scandinavian projects
(Storuman in Sweden and Lassedalen in Norway) and a large deposit
of strategic significance in Nevada, USA (MB Project).
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement
CAUTIONARY NOTICE
The news release may contain certain statements and expressions
of belief, expectation or opinion which are forward looking
statements, and which relate, inter alia, to the Company's proposed
strategy, plans and objectives or to the expectations or intentions
of the Company's directors. Such forward-looking statements involve
known and unknown risks, uncertainties and other important factors
beyond the control of the Company that could cause the actual
performance or achievements of the Company to be materially
different from such forward-looking statements. Accordingly, you
should not rely on any forward-looking statements and save as
required by the AIM Rules for Companies or by law, the Company does
not accept any obligation to disseminate any updates or revisions
to such forward-looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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