Tertiary Minerals Plc · LSE:TYM
Tertiary Minerals — Investor Presentation (October 2010)
33 slides from Tertiary Minerals's investor presentation, Oct 27, 2010
Slide 1: Fluorspar Developments in Norway and Sweden
Tertiary Minerals plc Fluorspar Developments in Norway and Sweden 27 October 2010
Slide 2: Tertiary Minerals plc Overview
Tertiary Minerals plc (ticker: TYM) Overview • AIM-quoted mineral exploration and development company. Shares are also traded on PLUS Markets. • Key objective is to become Europe’s largest fluorspar producer. • Europe is a major fluorspar consumer and European Commission has just named fluorspar as
Slide 3: New Generation Fluorspar Projects in the Nordic Countries
Norway & Sweden New Generation Fluorspar Projects Storuman Fluorite, Sweden in the Nordic Countries Lassedalen Fluorite, Norway
Slide 4: The Storuman Fluorspar Deposit, Sweden
Tertiary Minerals plc The Storuman Fluorspar Deposit, Sweden A major resource development opportunity for the Company
Slide 5: Sweden – Country Profile
Storuman Fluorspar Tertiary Minerals plc Sweden – Country Profile Political Stability - Constitutional Monarchy with a parliamentary democracy, an EU member since 1995 Traditional focus on primary resources : forestry & mining. 90% of Europe’s iron ore mining takes place in Sweden. Kiruna Iron Mine
Slide 6: Storuman Fluorspar Location
Storuman Fluorspar Tertiary Minerals plc Location Mo I Rana, Norway Storuman Fluorspar Approx 250km Approx 250km Approx Skellefteå, Sweden • Adjacent to highway with250km links to ports of Mo-i-Rana on Norwegian Sea and both Umeå and Skellefteå on Baltic (250km each way). Umeå, Sweden • 25km from Re
Slide 7: Storuman Fluorspar
Storuman Fluorspar 3x vertical exaggeration Extension Target Area Extension Target Line of Area Outcrop 1970’s drilling (39 holes) by Granges International defined deposit of c. 17 million tonnes (12% fluorspar) over area of 2km x 1.2km. Feasibility study carried out but project not developed
Slide 8: Storuman Fluorspar Cross Section
Storuman Fluorspar Tertiary Minerals plc Cross Section Ground surface Highway Fluorspar ore horizon Open 1.2km NB: vertical scale x4
Slide 9: Storuman Fluorspar
Storuman Fluorspar Mineralisation outcrops along the edge of the valley
Slide 10: Positive Scoping Study Completed
Storuman Fluorspar Tertiary Minerals plc Positive Scoping Study Completed by Tertiary Minerals plc Technical and economic studies which include operating and capital cost estimates to an accuracy of +/-35% Components : 1. Confirmation Drilling –Tonnage & Grade Estimate 2. Bench Scale Metallurgical T
Slide 11: Storuman Fluorspar - 2008 Drilling
Storuman Fluorspar - 2008 Drilling 18.05m grading 10.6% CaF2 1.75m grading 12.8% CaF2 Including 3.35m grading 21.5% Hole stopped in mineralisation Extension Target Area Extension Target Area 10.3m grading 13.1% CaF2 Including 3.35m grading 21.5% Extension Target Area Line of Tertiary 2008 Drilling -
Slide 12: Tertiary's 2008 drilling programme
Storuman Fluorspar Tertiary’s 2008 drilling programme Young forest allows easy drill access Hole 08TS007 Approx 20% Purple Fluorspar in drill core interval shown
Slide 13: Geological Column & Ore Positions
Storuman Fluorspar Tertiary Minerals plc Fluorspar present in two horizontally bedded layers of sandstone above granite basement Moraine Average 33m thick Alum Shale Additional mineralised horizon Average 9.8m Quartzite + fluorspar thick Average 1.2m thick Transition zone Main horizon explore by Gra
Slide 14: Tonnage-Grade Estimate
Storuman Fluorspar Tertiary Minerals plc Tonnage-Grade Estimate Scott Wilson Independent estimate of Tonnage & Grade (at 8% cut-off)* is nearly double 1970s estimates: Tonnes Grade CaF2 Upper Quartzite 11.7-13.9 million 10.1-12.0% Arkose 16.5-17.5 million 12.0-12.5% Total 28.2-31.5 million 11.2-12.3
Slide 15: Bench Scale Metallurgical Testwork
Storuman Fluorspar Tertiary Minerals plc Bench Scale Metallurgical Testwork Rougher fluorspar flotation • Flotation testwork carried out at SGS Lakefield Canada Rougher sulphide flotation • Testwork defined flowsheet and operating parameters for process plant design.
Slide 16: Crushing circuit
Storuman Fluorspar Tertiary Minerals plc Crushing circuit Nn Nn nnn Nn nun
Slide 17: Grinding/Flotation
Storuman Fluorspar – Grinding/Flotation One only O On ne e One onl y O ne
Slide 18: Technical & Economic Scoping Study
Storuman Fluorspar Tertiary Minerals plc Technical & Economic Scoping Study Parameters • Total 17,960,000 tonnes grading 12.3 % fluorspar (CaF2) mined in shallow open-pit over 18 year mine life. • Low waste-to-ore strip ratio 2.2 :1 average over life of mine. • High grade ore scheduled for first fiv
Slide 19: Provisional Site Plan
Storuman Provisional Site Plan Tertiary Minerals plc Tailings Facility Plant Site Horizontal nature of the ore zone lends itself to a small-footprint strip mine with Open-Pit Boundary progressive restoration
Slide 20: Scoping Study Results
Storuman Fluorspar Tertiary Minerals plc Scoping Study Results (Fluorspar priced at June 2010 prices) BASE CASE EXTENDED MINE LIFE Average Annual 103,000 103,000 Production of Acid – tonnes/yr tonnes/yr Grade Fluorspar Mine Life 18 years 23 years Initial Capital Costs $ 46 million $ 46 million (Cape
Slide 21: Scoping Study Results – Different Scenarios
Storuman Fluorspar Tertiary Minerals plc Scoping Study Results – Different Scenarios Base Case Extended Mine Life Case Using:: Using NPV IRR NPV IRR (8%), (8%), Study CaF2 Price $33 24% 24 % $41 24% 24% ($357 CIF Rotterdam) million million Using Average CaF2 $104 45% 45 % $120 45% 45% Price of $413
Slide 22: Indicative Development Timetable
Tertiary Minerals plc Storuman Fluorspar Indicative Development Timetable 2011 2012 2013 2014 Storuman Timeline Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Pre-feasibility study Environmental Baseline Studies Full feasibility Study Trial Mining/Marketing Environmental Permitting Plant Constru
Slide 23: An introduction to the Lassedalen Fluorspar Project
An introduction to the Lassedalen Fluorspar Project …….. a second fluorspar project in Europe announced July 2010
Slide 24: Lassedalen Fluorspar
Lassedalen Fluorspar Tertiary Minerals plc Kongsberg Oslo 6km from famous silver Lassedalen mining town of Kongsberg 80km SW of City of Oslo Port of 40km from Port of Located close to Highway E134 Drammen Drammen
Slide 25: Lassedalen Fluorspar
Lassedalen Fluorspar Tertiary Minerals plc Steeply dipping fluorspar vein system in 8km long breccia zone Highway E134 Vein Follows Lassedalen Steam 2.7km
Slide 26: Lassedalen Fluorspar
Lassedalen Fluorspar Tertiary Minerals plc Shaft III Plan View Central 560m section of vein explored by shallow underground development drive during WWII Shaft I Highway E134 Vein Follows Lassedalen Steam Norsk Hydro drilled 28 diamonds holes in 1974-75 2.7km Proved vein over 2.7km strike length
Slide 27: Lassedalen Fluorspar
Lassedalen Fluorspar Tertiary Minerals plc 3m/42% Fluorspar I.2 million tonnes contained fluorspar 7m/26% Fluorspar 12m/34% Fluorspar 6m/20% Fluorspar 6m/68% Fluorspar 10m/23% Fluorspar 6m/41% Fluorspar 5m/27% Fluorspar 7m/29% Fluorspar Vein sampled by Norsk Hydro by percussion drilling into side wa
Slide 28: Lassedalen: The next steps
Lassedalen Fluorspar Tertiary Minerals plc The next steps…… The Company has located nearly 3.5km of drill core from 23 of the 28 diamond holes drilled in the 1970s programme This core will where possible be re-sampled: • For definition of a JORC compliant Resource • To evaluate the suitability of th
Slide 29: Fluorspar - European Supply Risk
Fluorspar - European Supply Risk Tertiary Minerals plc 5,0 Rare Earths 4,5 Source: European Commission, June 2010 Europe consumes 4,0 just under 20% of PGM 3,5 the World’s fluorspar but produces less S upply R is k W B I/H H I 3,0 Germanium than 3% Magnesium Niobium 2,5 Antimony Gallium Risk of Supp
Slide 30: Regional Acidspar Markets
Tertiary Minerals plc Storuman Fluorspar Regional Acidspar Markets Storuman Lassedalen Acid-spar producer Acid-spar consumer
Slide 31: Enterprise Value
Tertiary Minerals plc Enterprise Value Based on enterprise values of peer group listed companies and value of fluorspar project transactions: Average Implied Enterprise Value: £11.5 million (vs. current Mkt Cap £ 5 million) 13 pence per share (vs. current share price 5.75 pence) Does not including a
Slide 32: A word (or two) from our lawyers
A word (or two) from our lawyers…… Tertiary Minerals plc The content of this document has not been approved by an authorized person within the meaning of the Financial Services and Markets Act 2000. Reliance on this document for the purpose of engaging in any investment activity may expose an indivi
Slide 33: Thank You
Thank You Storuman, Sweden Tertiary Minerals plc For further information please contact: Patrick Cheetham Executive Chairman Tel: +44 (0)1625 626203 pat.cheetham@tertiaryminerals.com
Tertiary Minerals — Investor Presentation (October 2010) on 6ix