TERTIARY MAKES UNEXPECTED FIND OF ZINC-RICH MASSIVE SULPHIDES IN SWEDEN'S BERGSLAGEN DISTRICT

• Records Indicate Boliden Group Completed Five Holes Into Deposit
• Base Metal Mineralisation Also Has Unusually High Gold Content
• "Significant Extensions" Indicated At Djuragruvan Zinc-Silver Project
  

AIM-listed Tertiary Minerals plc, which recently reported the positive findings of an independent scoping study on its Rosendal tantalum project in Finland, says that ongoing exploration at a number of its other Scandinavian prospects continues to give encouragement. This includes the unexpected discovery during mapping and sampling of prospective PGM areas in the Bergslagen district of central Sweden of zinc-lead-copper massive sulphide mineralisation.

In the end-December quarterly report, chairman Mr Patrick Cheetham says this base metal showing, which it has named the Logarden project (Tertiary 100 p.c.), lies within the company's Flinten project area and comprises a 25m-long exposure of massive to semi-massive pyrite containing lenses of massive sphalerite (zinc sulphide) and galena (lead sulphide) in a quartz-biotite schist.

A review of limited information available in public records shows the prospect was previously investigated by Boliden. The Swedish mining group reportedly drilled five holes which intersected open-ended mineralisation averaging 6.5p.c. zinc, 3p.c. lead, 0.8p.c. copper, 75g/t silver and 1.4g/t gold. The gold grade is unusually high for Bergslagen district base metal mineralisation, Tertiary states.

During the quarter, Tertiary completed chip sampling and a preliminary induced polarisation (IP) geophysical survey at Logarden. Outcrop sampling returned an average grade of over 23p.c. combined zinc-lead-copper, together with more than 100g/t silver, over 2.5m. The results of the IP survey, undertaken to determine if the mineralisation is responsive to this exploration method, are still awaited.

Just north of the city of Boden in northern Sweden, mapping by Tertiary has confirmed the geological setting and structure of a large funnel-shaped mafic intrusion on the Nottrask prospect. This suggests it could be prospective for nickel-copper and PGM mineralisation similar in style to the huge Voisey's Bay discovery in Canada, the company states.

Elsewhere in the Bergslagen district, the results of a magnetic geophysical survey on the Djuragruvan zinc-silver project indicate significant extensions to the mineralisation at both Gruvberget South and North, as well as a number of new target areas. A programme of follow-up IP geophysics has been completed and results are awaited, the company adds.

POSITIVE OUTLOOK FOR ROSENDAL PROJECT

As reported earlier this month, the Rosendal scoping study indicated an internal rate of return of 33p.c. and a payback of little more than two years. The estimated capital cost of US$12.5m is based on a stand-alone open-pit project mining 150,000tpa of ore and utilising an all-new processing plant to produce annually 66,000lb of tantalum pentoxide and 84,000t of feldspar as a co-product. This would give a mine life of around 11 years, based on the estimated resource of 1.3m tonnes grading 289g/t tantalum pentoxide and 70p.c. feldspar to a depth of 100m.

Tertiary has also suggested, however, that both tonnage and grade of the estimated resource at Rosendal may be higher than initially indicated. The mineralisation remains open both at depth and along strike, and further drilling could increase the mineral resource, it says. In addition, the tantalum grade used in the scoping study (289g/t) is the average value of surface channel samples and smaller samples from narrow diameter diamond drill cores. The company believes the drill-hole samples may not be sufficiently large to be representative of the deposit's grade as the larger surface channel samples average 436g/t and the largest sample collected to date, the metallurgical test sample, averaged 620g/t tantalum pentoxide.

Rosendal is located adjacent to an existing feldspar production plant, and considerable capital and operating cost savings are possible if the plant and/or infrastructure can be shared. Given the project's favourable coastal location, at the heart of European markets, and Finland's political stability, Tertiary intends to fast track further evaluation and development.

FULL TEXT OF QUARTERLY AVAILABLE ON REQUEST

Further Information: Patrick Cheetham, Tertiary Minerals Plc .
Tel: 01625-626203; mob: 07767-458751

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