04
November 2002
TERTIARY MINERALS TIES UP COPPER-COBALT-GOLD TARGET IN SWEDEN
- Previous
Operators’ Drilling Results Warrant Follow-Up
- Olympic
Dam Style Targets Acquired In New Finland Exploration Initiative
- Ghurayyah
Testwork Completed – Results Awaited
AIM-listed Tertiary
Minerals plc, which recently announced a new exploration initiative
in Finland to search for Olympic Dam style iron oxide-copper-gold
(IOCG) deposits, has extended its new target acquisition into neighbouring
Sweden where several such deposits are being worked by majors. In
its end-September quarterly the company says it has applied for
an exploration permit covering some 28km2 of the Ahmavuoma target,
80km east of Kiruna.
This property was previously explored by LKAB, the Swedish iron
ore producer, and North Atlantic Natural Resources. LKAB targeted
a number of electro-magnetic (EM) anomalies which, on drilling were
found to relate to magnetite-associated copper-cobalt-gold bearing
massive and disseminated sulphides. Although these were deeply weathered
and drilling was hampered by very poor core recovery, Tertiary says
numerous intersections of economic interest were returned, such
as: 41m from a depth of 60m which averaged 0.69p.c. copper and 0.29p.c.
cobalt (including 8m of 0.76p.c. copper, 0.58p.c. cobalt and 1.1g/t
gold from 71m), and 5.2m of 2.06p.c. copper, 0.72p.c. cobalt and
0.7g/t gold from 71m.
The mineralisation at Ahmavuoma is also strongly anomalous in molybdenum
and barium and may be of volcanogenic massive sulphide or Olympic
Dam type. The drill results reported by previous operators warrant
follow-up, states Tertiary.
Turning to the company’s tantalum activities, Tertiary chairman
Mr Patrick Cheetham says the general consensus of the recent Tantalum-Niobium
International Study Centre annual general assembly in Kyoto, Japan,
was that the current downturn in tantalum demand – a result
of the recession in consumer electronics sales - is deeper and may
be more prolonged than was originally projected. The consequence
is two-fold: it is difficult to predict when demand for tantalum
will increase and there is considerable uncertainty as to prices
that might be achieved for future production, he adds.
CURRENT TESTWORK AT GHURAYYAH NEARS COMPLETION
With regards to the company’s two tantalum projects,
Mr Cheetham says that the current phase of metallurgical testwork
on samples from the Ghurayyah deposit in Saudi Arabia, reportedly
the world’s largest, is now complete and final results will
be available soon.
Meanwhile, the preliminary feasibility study on Tertiary’s
Rosendal deposit in Finland has been awarded to Cornwall-based CSMA
Consultants Ltd, with resource modelling contracted to SRK Consulting.
Phase 1 drilling results have been incorporated into a block model
by SRK and a preliminary inferred mineral resource of 1.05m tonnes
grading 255g/t tantalum pentoxide estimated. CSMA has undertaken
metallurgical testwork and preliminary pit optimisation.
Further drilling has been undertaken with the objective of refining
the block model and testing outlying pegmatites discovered and sampled
previously. Two 375m-spaced drill traverses, each of four shallow
holes, were drilled to test dykes occurring immediately north of
the main pegmatite. Multiple narrow dykes were intersected with
generally moderate tantalum grades and a best value of 1.98m grading
840g/t tantalum pentoxide from a down-hole depth of 24.8m.
In addition, three 50m-spaced holes were drilled to test a 100m
strike length of a dyke located 1.8km ENE of the main pegmatite
dyke. The most easterly hole returned the best result of 4.75m averaging
240g/t tantalum pentoxide from 40.7m down-hole. A further four holes
were drilled into the main dyke, three for in-fill purposes and
one to extend the dyke to the east. Results were in line with expectations
and appear to have closed off the main dyke to the east.
IMPORTANCE OF FELDSPAR AT ROSENDAL
Tertiary says that the current depressed market and low prices for
tantalum do not favour development of the Rosendal project for its
tantalum content alone and that the company is continuing to investigate
the by-production of sodium feldspar. “The feldspar content
could make a big difference to the economics”, the company
states. It will also investigate ways to advance the permitting
process so that the project can be brought into production at relatively
short notice when market conditions improve.
Commenting on the company’s 100p.c. owned Finnmark PGM project
in northern Norway, Tertiary says that it is continuing to gauge
the level of public and political support for mining at Gallujavre
should exploration prove successful, and a number of meetings have
been held with the Sami Parliament and the Karasjok Municipality.
During the quarter, a programme of trenching was carried out at
the Flinten project (Tertiary 100p.c.) in Sweden to further investigate
high-grade zinc mineralisation exposed in a forest road cutting
at Logarden. The trenching exposed zinc-rich massive sulphide mineralisation
over a strike length of 38m. The mineralisation is narrow (1m-1.5m)
but high-grade and remains open to the north west.
Further Information: Patrick Cheetham, Tertiary Minerals Plc.
Tel: 01625-626203; Mobile: 07767-458751
John Greenhalgh/Ron Marshman, City of London PR Ltd.
Tel: 020-7628-5518 |
