Location plan

Location plan

Storuman Regional Map

Storuman Regional Map

Storuman - Mine Concession and Preliminary Infrastructure

Storuman - Mine Concession and Preliminary Infrastructure

Mineralisation in Close up

Mineralisation in Close up

Mineralisation in drill core

Mineralisation in drill core

Landscape over Storuman

Landscape over Storuman

Storuman Railhead

Storuman Railhead



Storuman - Example Long Section

Storuman - Example Long Section

Storuman - Example Cross Section

Storuman - Example Cross Section

< >


Navigate page

Other Projects


The Company’s 100% owned Storuman project is located in north central Sweden and is linked by the E12 highway to the port city of Mo-i-Rana in Norway and by road and rail to the port of Umeå on the Gulf of Bothnia. A recently constructed bulk rail terminal 25km from the project site is likely to become an important factor in the cost-effective delivery of fluorspar to the key European fluorspar market. The Company reached a significant milestone with the Storuman Project on the 18 February 2016 when a 25 year Exploitation (Mine) Permit was granted by the Swedish Mining Inspectorate.

Mineral Resource Estimate

In March 2011 the maiden JORC compliant Mineral Resource was estimated for the Storuman Fluorspar Project. Further details may be found in the RNS dated 31st March 2011

Classification Million Tonnes (Mt) Fluorspar (CaF2%)
Indicated 25.0 10.28
Inferred 2.7 9.57
Total 27.7 10.21

Table 1 - JORC Mineral Resource Estimate effective 25th March 2011

The Mineral Resource Estimate is based on the results from 56 diamond drill holes completed by the Company in 2008 and 2010. All tonnage in the estimate falls within a Whittle optimised open-pit with low waste overburden strip ratio (0.8 tonnes of overburden per tonne of mineralisation). 

By definition, a JORC compliant Mineral Resource must have reasonable prospects for eventual economic extraction and portions of a mineral deposit that do not have such prospects must be excluded from the estimate. 

To determine the Mineral Resource Statement, a Whittle pit optimisation exercise is used to determine the proportion of the material that has a reasonable prospect of economic extraction. The ore tonnage and grade generated by the pit optimisation process is the Mineral Resource Estimate. It is classified as either “Inferred” or “Indicated”. The Minerals Resource at Storuman is 90% in the higher “Indicated Mineral Resource” category which means that confidence in the estimate is sufficient to allow the application of technical and economic parameters, and to enable an evaluation of economic viability.

Whittle Parameters

To generate the optimised ore tonnage and grade the Whittle optimisation requires the input of reasonable processing and mining cost parameters in addition to appropriate pit slope angles and processing recoveries. The table below shows the assumptions applied in the Whittle optimisation

CaF2 Selling Price (mine-gate)$303 / t
Govt Royalty0.2%
Private Royalty0%
Discount Rate0%
Process and Mining Statistics
Slope Angle27° in Glacial Overburden, 45° in Shale and 50° in all other lithologies
Mining Recovery97%
Mining Dilution3%
Process Recovery81.9%
OP Mining Cost at surface.2.6 USD/tonne
Incremental Mining Cost above surface0.025 USD/tonne/5m
Incremental Mining Cost below surface0.00 USD/tonne/5m
Processing Cost$10.6 USD / tonne processed
General & Administration3.1 USD / tonne processed
Concentrate Grade97.0%

It is common practice during resource estimation to use optimistic commodity pricing in order to allow for “eventual economic extraction” at prices that at some stage in the future will cycle to prices higher than prevailing prices. However, in this case SRK agreed with the Company’s request to use a fluorspar price that was conservative at the time. The fluorspar price used for the Mineral Resource Estimate, US$303/tonne fluorspar at the mine gate, was estimated during the 2010 Scoping Study to be equivalent to a price of US$357 delivered into Rotterdam (CIF basis). The CIF Rotterdam price is a recognised pricing basis and in March 2011 the CIF Rotterdam price for Chinese fluorspar was reported to be US$460/tonne. 

Comparison with 2010 Scoping Study

The 2010 Scoping Study delivered a base-case project NPV of US$33 million, and an Internal Rate of Return (IRR) of 24% at a US$303/tonne mine gate fluorspar selling price and a capital pay-back of less than 3 years. The Company notes that if using the March 2011 fluorspar price of US$460/tonne (CIF Rotterdam) the Company’s Scoping Study base-case financial model generates a NPV of US$123 million (at a comparable discount rate of 8%), an IRR of 50% and a 1.7 year payback.

Scoping Study Highlights

Open-pit mineable tonnes (million tonnes)17.9622.96
Head-grade (% CaF2)12.3%
Metallurgical recovery81.9%
Average Annual Production of Acid - Grade Fluorspar103,000 tonnes/yr103,000 tonnes/yr
Mine Life18 years23 years
Gross Cash generated over Life of Mine (LOM)$616 million$787 million
Net Cash generated over LOM$137 million$174 million
Initial Capital Costs (Capex)$ 46 million$ 46 million
Average Annual Net Operating Cash Flow Years 1-5$ 17 million/yr$ 17 million/yr
NPV (8% discount rate) *$ 33 million$ 41 million
IRR (ungeared, 100% equity)24.1 %24.2%
Payback< 3 years< 3 years
* Based on a concentrate selling price (CIF Rotterdam) equal to the June 2010 price for Chinese fluorspar (CIF Rotterdam) of $357.50 published in Industrial Minerals Magazine (the back calculated equivalent mine-gate price used in the Scoping Study is US$303/t) 
Scoping Study highlights ($ = US dollars, all Pre-Tax)


The deposit is located in an area with well-established infrastructure. It is located adjacent to a sealed highway and only 25 km from the regional town of Storuman which is connected by rail and a sealed highway to the city and port of Umeå on the Gulf of Bothnia. The sealed highway continues in the opposite direction to the ice-free port town of Mo-I-Rana in Norway. There are also sealed highway routes to the major regional port of Skellefteå. Each of these three named ports is roughly 250km from the project site.


The basis for the Storuman Project is a large area of flat lying, sandstone hosted fluorspar mineralisation that extends over an area of at least 3.6 km by 1.2 km where the mineralised horizon is typically 3-10 m thick. The mineralisation has been defined (but not closed off) by 95 drill holes; 39 completed by Gränges International Mining in the 1970s; 10 by Tertiary Minerals in 2008 and 46 by Tertiary Minerals in 2010.


A conventional open pit strip mining operation of 1.0 million tonnes per annum (Mtpa) is envisaged for the Project, with a life of mine exceeding 20 years. Waste rock material generated from the stripping operations will be used to construct the tailings storage facility and excess waste material will be directly backfilled into the open pit during operations, effectively progressing pit closure during mining operations.

The primary mining operations will consist of drilling, blasting, loading and hauling of ore and waste materials with free digging envisaged for the glacial till and shale overburden. Mining is envisaged to be undertaken by a mining contractor to reduce pre-production capital expenditure.

Based on a preliminary Whittle pit optimisation carried out by SRK in March 2011, a total mineable tonnage of 27.8 Mt grading 10.2% CaF2 and producing 2.3 Mt of concentrate can be economically extracted using the Scoping Study metallurgical recovery of 81.9%. The average stripping ratio is 0.8 for the life of mine which equates to 22.2 Mt of waste produced.

Mineral Processing

A 1.0 Mtpa flotation process plant is envisaged for the Project with three stages of crushing, primary ball mill and two regrind stages. Ore will be delivered to a run of mine (ROM) pad and fed to the plant via a front end loader. The final concentrate product will be transported to a Swedish port for export.

Metallurgical testwork conducted by SGS Minerals Services (Canada) during 2008-2010 was directed and reviewed by Malcolm Crawford of Delta Minerals Limited, a recognised fluorspar processing specialist based in England. This testwork formed the basis of the conceptual process flowsheet used in the Scoping Study and shown below.

The concentrate produced by the process flow sheet results in a fluorspar concentrate that meets concentrate product specifications for sulphur, silica and calcium carbonate with a process recovery of 81.9%. As a result of the need for fine grinding the process flow sheet results in a fluorspar concentrate that is finer grained than traditionally supplied to the market. Further work is described below within the Preliminary Feasibility section.

Storuman Market

The Storuman project is a large fluorspar deposit containing 2.3 million tonnes of recoverable, open-pit mineable, fluorspar. With a conceptual Acid-spar output of 100,000 tonnes per year Storuman would be a medium-scale producer. The relative proximity of Storuman to Europe and North America is seen as an advantage, and local deep-water ports will allow product to be delivered to any international market assuming price and suitability is acceptable. It is also anticipated that Sweden’s low political risk; excellent regional infrastructure; and long history of mining may offer strategic advantages over some traditional sources. A newly constructed bulk rail terminal 250km from the project site is likely to become an important factory in the cost-effective delivery of fluorspar to the key fluorspar markets.

Project Risks

The completion of the Scoping Study on the Storuman Fluorspar Project by Scott Wilson Limited is an important milestone in the evaluation of this project and provides the Board of Tertiary Minerals with an important document for decision making on the merits of further investment in the Project.

Scott-Wilson further comments that the Scoping Study and its economic analysis (which included cost accuracies are in the region +/- 35% based on 2nd quarter 2010 estimates):

As such Scott Wilson caution that, although in their opinion the available geological information at this stage of the project does not fully reflect the potential of the Storuman fluorite deposit, there is no certainty that the economic forecast will be realised.

Exploitation (Mine) Permit Application

The Company submitted its Exploitation (Mine) Permit application to the Swedish Mining Inspectorate in July 2014. In order to submit an Exploitation (Mine) Permit application the Company had to complete the following key work programmes for the project:

The resultant technical, economic, social and environmental information was used by the Company and its Swedish based consultants and advisors to prepare the technical description, environmental impact assessment and legal documents required for the application.

The Company reached a significant milestone on the 18 February 2016 when it was granted a 25 year Exploitation (Mine) Permit by the Swedish Mining Inspectorate.

Preliminary Feasibility Study

During the last 12 months the Company has contracted the services of a specialist mineral processing consultancy to complete the final phase of Preliminary Feasibility Study (PFS) level metallurgical testwork with two key objectives: 

Whilst the key chemical specifications have been met and improvements have been made to the processing flow sheet, the test work is producing a fluorspar concentrate which is still finer than the ‘typical’ market specification. It is critical at this stage that the Company engages with key end users to discuss their technical requirements and the suitability of the Storuman fluorspar concentrate. The Company has therefore recently completed a programme of constructive discussions and plant visits with various end users. Based on the discussions and advice provided by the end users the Company, together with its specialist mineral processing consultancy, is in the process of scoping a detailed work programme with the following objectives: 

Before progressing onto the outstanding phases of the Preliminary Feasibility Study it is critical that each phase of the detailed test work programme is successful.