| May
17, 2004
WELL-FUNDED TERTIARY MINERALS SETS
STRONG PACE WITH 2004 EXPLORATION PROGRAMMES
- Final Drilling
Results From Two Scandinavian Projects Expected Shortly
- Three Others
Scheduled For Drilling Over Coming Months
- Ghurayyah
JV Negotiations With Large Saudi Company Ended
AIM-listed Tertiary
Minerals plc says its 2004 exploration programme has set off at
a strong pace and the company is sufficiently well funded to meet
budgeted exploration for the balance of 2004. “We look forward
to reporting further progress on a regular basis”, states
executive chairman, Mr Patrick Cheetham in the interim report for
the six months ended March 31, 2004.
The company’s report covers a period in which a broad range
of precious and industrial metal prices peaked, followed towards
the end of April by a modest retreat on profit taking by fund managers
as the US dollar weakened and the Chinese Government indicated it
would rein in its industrial growth to more realistic levels. Stocks
of most metals remain at relatively low levels, however, and the
demand outlook remains strong, comments Mr Cheetham. This recent
adjustment is considered to be a healthy correction to a market
that was in danger of overheating, he adds.
Tertiary has previously reported initial results from its now completed
winter drilling programmes at the Ahmavuoma copper-cobalt-gold project
in Sweden and the Kaaresselkä gold project in Finland, and
the final results are expected shortly. Elsewhere, drilling is scheduled
to begin shortly at the Gruvberget zinc-silver-gold project in Sweden,
at the company’s diamond project in Finland and later this
summer on the Notträsk nickel project, also in Sweden.
Commenting on its Ghurayyah tantalum project in Saudi Arabia, Mr
Cheetham says the prospects for its development are being enhanced
by the continuing strong recovery in the tantalum market. Current
spot prices are some 50p.c. higher than a year ago and strong demand
is reported from the recovering electronics industry which accounts
for around 80p.c. of annual tantalum consumption.
The company continues to work closely with Merchant Bridge, the
specialist merchant bank advising the British Offset Office, to
secure external funding for further development of Ghurayyah. This
has included protracted negotiations with a large Saudi company
with whom Tertiary had expected to reach agreement but where negotiations
have recently been terminated. Tertiary says it continues to monitor
the security situation in Saudi Arabia which has had no adverse
affect on the company’s activities to date.
Tertiary reports a loss of £190,672 for the half year, comprising
administration costs of £138,005 and exploration write-offs
of £60,132 and after interest income of £7,465.
At the end of the period the company had net current assets of almost
£861,700 and just over £970,000 in cash.
COPIES OF FULL INTERIM STATEMENT AVAILABLE ON REQUEST
Further Information: Patrick Cheetham, Executive
Chairman, Tertiary Minerals plc. Tel: 01625-626203
Ron Marshman/John Greenhalgh, City of London PR Limited. Tel: 020-7628-5518
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