REG - Tertiary Minerals - Collaborative Agreement - Zambia Copper Projects

Tertiary MineralsAnnouncement

15/09/2022 07:00

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RNS Number : 5703Z  Tertiary Minerals PLC  15 September 2022

15 September 2022

 

Tertiary Minerals plc ("Tertiary" or "the Company")

 

COLLABORATIVE AGREEMENT - ZAMBIA COPPER PROJECTS

Tertiary Minerals plc is pleased to announce that it has signed a Technical
Cooperation Agreement (the "Agreement") with First Quantum Minerals Limited
("FQM") in connection with two of its copper exploration projects in Zambia.

Key Points:

·    The Agreement covers Tertiary's Mukai and Mushima North Project
Interests (the "Projects").

 

·    The Mukai Project Exploration Licence is located in Zambia's
North-western Province  and is directly adjacent to FQM's Trident Project
which includes the large Sentinel Copper Mine and the recently opened
enterprise Nickel Mine.

 

·    The Mushima North Exploration Licence, in the Kasempa District, is
also in an active exploration area for FQM and is prospective primarily for
iron-oxide-copper-gold (IOCG) mineralisation.

 

·    FQM & Tertiary will establish a Technical Committee with the
objective to work collaboratively with respect to advancing exploration and
development of the Projects.

 

·    The Technical Committee will advise and assist Tertiary in relation
to all technical matters relating to the Projects.

 

·    FQM will provide Tertiary with all of its historical exploration data
for the two licence areas and Tertiary will submit its exploration results to
the Technical Committee on an ongoing basis.

 

Commenting today, Executive Chairman Patrick Cheetham said:

"This Agreement will turbo-charge Tertiary's Zambian exploration in these two
key licence areas. We are set to benefit from FQM's extensive and in-depth
country experience, gained over many years of exploration and mine development
in Zambia and, importantly, its site-specific historical exploration in and
around these two exciting projects.

"For Tertiary, the Agreement will effectively harness the expertise of one of
the world's largest copper producers without the associated cost, and in
return FQM will gain first-hand knowledge of any new discoveries that we make,
and will be in pole position, should we seek an exploration or development
partner in future. Nevertheless,  it is important to stress that the
Agreement does not bind either company to any further agreement or grant FQM
any first rights of refusal and so is not commercially restrictive for
Tertiary.

"We are grateful to FQM for proposing such a free-thinking arrangement and we
look forward to working with their team."

 

 

 

 

For more information please contact:

 Tertiary Minerals plc:
 Patrick Cheetham, Executive Chairman      +44 (0) 1625 838 679
 SP Angel Corporate Finance LLP

 Nominated Adviser and Broker
 Richard Morrison                          +44 (0) 203 470 0470
 Caroline Rowe
 Peterhouse Capital Limited

 Joint Broker
 Lucy Williams        + 44 (0) 207 469 0930
 Duncan Vasey

 

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 which forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via a Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.

 

Additional Information.

Tertiary is exploring in Zambia through local subsidiary Tertiary Minerals
(Zambia) Limited ("TMZ") which is 96% owned by Tertiary Minerals plc. TMZ has
the right to acquire up to a 90% interest in the Mukai and Mushima North
exploration licences from local company and licence holder Mwashia Resources
Ltd.

Further details of Tertiary's agreements with Mwashia are given in the
Company's news releases of 2 August 2021 and 18 November 2021.

 

Mukai Copper Project, 27066-HQ-LEL

Exploration Licence 27066-HQ-LEL covers 55.4 sq. km. and is located 125km west
of Solwezi in the north-western Province of Zambia. Geologically it is in the
Domes Region of the Central African Copperbelt and it encompasses Lower Roan
Subgroup rocks which are part of the southern flank of the highly prospective
Kabompo Dome.

The licence is directly adjacent to FQM's Trident Project licences which
include the recently opened Enterprise nickel mine and the large producing
Sentinel (Kalumbila) copper mine, located 8km south and 18km southeast of the
licence, respectively.

FQM has invested US$2.1 billion in the Sentinel copper mine where the plant
has the capacity to treat 55 million tonnes of ore per annum.

Enterprise is a sediment-hosted nickel-sulphide deposit with a total measured
and indicated resource of 40 million tonnes of ore containing 431,000 tonnes
of nickel from which FQM envisages processing some 4 million tonnes per year
of nickel ore making Enterprise the largest nickel mine in Africa.

The project is also located west of Arc Minerals project area on the opposite
flank of the Kabompo Dome where Anglo American plc can earn a 70% interest
from Arc Minerals plc through expenditure of US$88.5 million including US$14.5
in cash payments.

 

Mushima North Copper Project, 27068-HQ-LEL

Exploration Licence 27068-HQ-LEL covers 701.3 sq. km. and is located 100km
east of Manyinga.

The licence encompasses basement rocks outside of the traditional Copper Belt
and the region is a focus of exploration for copper-gold in so called
Iron-Oxide-Copper-Gold ("IOCG") deposits best exemplified by the giant Olympic
Dam copper-gold-uranium deposit in South Australia.

The past producing Kalengwa copper mine is situated approximately 20km west of
the licence and is believed to be one of the highest-grade copper deposits
ever to be mined in Zambia. In the 1970s high grade ore in excess of 26%
copper, making up approximately 20% of the orebody, was trucked for direct
smelting at Copper Belt mines.

 

First Quantum Minerals Ltd  ("FQM")

FQM is a global copper company operating long life mines in several countries.
It employs approximately 20,000 people world-wide.

FQM is  ranked the sixth largest copper producer in the world and is
forecasting global copper metal production of at least 790,000t in 2022.

Just under half of FQM's copper production is expected to come from its
Kansanshi and Sentinel mines in Zambia which together represent approximately
50% of total Zambian copper output.

 

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