23 August, 2004

TERTIARY FINDS MORE KIMBERLITE IN FINLAND – LAB RESULTS RELEASED ON FIRST TARGET

• 44m Kimberlite Intersection In First Hole At Kattaisenvaara Prospect 20Km Away
• G9/G10 Garnets Recovered From Earlier Discovery At Kalettomanpuro
• New Gold Find Acquired In Finland – Boulder Samples Average 8.6g/t Gold

AIM-listed Tertiary Minerals plc today announces the laboratory results from analysis of the two separate kimberlite bodies found last month at Kalettomanpuro in the Karelian Craton of Finland and also reveals the discovery of a third kimberlite, some 20km away from the other two. This new kimberlite, at Kattaisenvaara, was encountered in drilling beneath almost 24m of glacial till and extended to a down-hole depth of 67.7m. A second hole is now underway to test the thickness of the kimberlite and collect material for characterisation and analysis.

G9/G10 pyrope grains from Kalettomanpuro kimberlite Click the image to the left for detail view

Laboratory testing of the samples from the Kalettimanpuro kimberlites has been conducted for microdiamonds and indicator minerals. Although no microdiamonds were found, a large suite of diamond indicator minerals, including visually distinctive G9 and/or G10 garnets, were recovered from the Group II kimberlite sample.

These garnets have been submitted for microprobe analysis and Tertiary says that any G10 garnets compositionally confirmed to be from the diamond window would be highly significant showing that this kimberlite has sampled parts of the earth’s mantle where diamonds are stable and establishing the potential of the kimberlites in this cluster to be diamond bearing.

So far only two small samples (25kg and 50kg) of kimberlite were submitted for microdiamond analysis. Tertiary says that various parts of the same kimberlite, and other kimberlites within the same cluster, can have widely different diamond contents and that more work is clearly justified at Kalletomapuro to further test the known kimberlites and explore for others in this cluster.

The new discovery at Kattaisenvaara may be part of a separate cluster and needs to be evaluated on its own merit, it adds.

Commenting on this latest development, Tertiary’s executive chairman, Mr Patrick Cheetham, said: “The company is very encouraged by its high rate of kimberlite discovery at such an early stage, and has strong expectations for the future success of its diamond exploration efforts in this under-explored part of Finland where we have a further 19 targets under claim or claim reservation.”

Meanwhile, Tertiary also announces it has reached agreement to acquire the Pitkäjärvi high-grade gold prospect in south-central Finland from a private prospector who, in May this year, discovered a train of mineralised surface boulders, up to 1m across and containing visible gold.

Field examination by Tertiary has confirmed the presence of significant gold grades in the boulders, which appear to be of local origin. Nine samples from different boulders returned values of up to 16.6g/t gold and averaged 8.5g/t. The company considers the mineralisation at Pitkäjärvi to be similar to the nearby Kopsa gold deposit currently being explored by Belvedere Resources.

The boulder train occurs in an area of 150m by 70m, although its full extent is thought to be hidden beneath surrounding marshland.

Tertiary is now planning a programme of ground geophysics to delineate the source of the boulders with a view to drill testing targets as soon as possible.

Reporting on results from drilling to test for zinc-silver mineralisation down-dip and along strike from the Gruvberget mine in Sweden, Mr Cheetham says that no significant mineralisation was intersected.

Further Information: Patrick Cheetham, Tertiary Minerals:
Tel: 01625-626203

Ron Marshman/John Greenhalgh, City of London PR Ltd.
Tel : 020-7628-5518