REG - Tertiary Minerals - Drill Start & Exploration Update

Tertiary MineralsAnnouncement

23/09/2024 07:00

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RNS Number : 1160F  Tertiary Minerals PLC  23 September 2024

 

 

23 September 2024

 

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

 

Drill Start & Exploration Update

The Company is pleased to provide the following update on its exploration
activities in Zambia and Nevada.

 

Mushima North Copper Project (Zambia)

 

·    Drilling contract signed for up to 2,500m of air core drilling to
test the A1 copper-in-soil geochemical anomaly.

·    Access roads and initial drill pad preparation complete.

·    Geophysical programme planned to refine drill targets at Target C1.

·    Drilling expected to start today.

 

Konkola West Copper Project (Zambia, Agreement with KoBold Metals, "KoBold")

 

·    Drilling of hole KWDD001 is continuing.

·    Drilling is slow due to the depth of drilling, now in excess of
2,000m, and the technical challenges in drilling at such depths in new,
undrilled areas.

·    KoBold remains committed to continue the hole until it reaches its
target horizon or the limits of the drill rig's capabilities.

 

Mukai Copper Project (Zambia, Agreement with First Quantum Minerals, "FQM")

 

·    Two-phase, 12-hole diamond drilling programme planned to test
copper-in-soil geochemical anomalies.

·    FQM ready to drill this dry season, subject to local consents being
obtained in time.

 

Jacks Copper Project (Zambia)

 

·    Pitting programme underway at copper-in-soil geochemical anomalies B
& C to prioritise drilling targets.

 

Brunton Pass Copper Project (Nevada)

 

·    Four reverse circulation drill holes planned as test of coincident
geochemical and geophysical anomalies.

·    Drilling permit application submitted to US Bureau of Land
Management.

·    Drilling contractor selected and drilling provisionally scheduled to
start in mid-late October.

Storuman Fluorspar Project (Sweden)

·    Company to appeal the Swedish Mining Inspectorate's decision to
refuse the Company's application for a mining concession.

 

 

Patrick Cheetham, Executive Chairman of Tertiary Minerals plc said:

"I am pleased to report that, following our recent successful fundraising, we
now have drilling either in progress, imminent, or planned for the near future
at four separate copper projects in Zambia and Nevada, USA, two of which are
fully funded by our joint venture partners. We are particularly pleased to see
FQM is committed to drilling at Mukai just a few weeks into the term of our
agreement, subject to the necessary consents being obtained. This confirms our
view of the prospectivity of the licence and is testament to the success of
our exploration team in defining drill targets across our exploration
portfolio."

 

Further Information:

 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

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 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.

 

Detailed Information

Mushima North Copper Project (Zambia)

The Mushima North Copper Project (Licence 27068-HQ-LEL) is held through Group
company Copernicus Minerals Limited ("Copernicus") which is 90% owned by
Tertiary Minerals (Zambia) Limited. Copernicus is in the process of taking a
transfer of the licence through its agreement with licence holder, Mwashia
Resources Limited ("Mwashia") (see announcement dated 26 February 2024).

The project lies 20km to the east of the Kalengwa copper mine which is now
being reopened and is expected to produce 15,000 tonnes of copper annually.
Kalengwa was one of the highest-grade copper deposits ever to be mined in
Zambia. In the 1970s high-grade ore, in excess of 26% copper, was trucked for
direct smelting at other mines in the Copperbelt.

Kalengwa was discovered by drill testing a coincident copper-in-soil anomaly
and gravity anomaly and has characteristics of the Iron-Oxide-Copper-Gold
("IOCG") class of deposits.

In 2023, following a detailed targeting project, Tertiary carried out soil
sampling over the A1, A2 and C1 targets, defining significant copper in soil
anomalies (see announcements dated 5 October and 16 October 2023).

A contract has now been signed with Ox Drilling for up to 2,500m of aircore
drilling which will primarily test the large A1 soil anomaly in a number of
drill traverses. The A1 copper-in-soil anomaly covers an area of approximately
3km by 1.5km and is considered prospective for traditional Copperbelt style
mineralisation.

Drill access and preliminary drill pad preparation have been completed.
Drilling is expected to start today and run for approximately 2-3 weeks.
Samples will be analysed in the field using a hand-held portable x-ray
fluorescence ("pXRF") spectrometer with follow-up laboratory based check
analyses.

A geophysical programme is also being planned to better define the gravity and
magnetic anomalies defined by BHP at Target C1. BHP had planned two holes in
2011 to test these anomalies for IOCG style mineralisation but terminated all
exploration in Zambia prior to drilling these holes.

Konkola West Copper Project (Zambia, Agreement with KoBold Metals, "KoBold")

The Konkola West Project comprises Exploration Licence 27067-HQ-LEL which
covers 71.9 sq. km. and is located 18km northwest of Chingola in the Central
African Copperbelt.

KoBold has the right to earn-in to the project and is funding exploration
costs. Further details of the agreement with Mwashia and KoBold can be found
in the Company's announcement dated 19 December 2023.

The Konkola West Project is targeting deep down-dip and along-strike
extensions of the contiguous Lubambe-Mingomba-Konkola copper deposits to the
west of the Licence and which extend north into the Musoshi mining complex in
the Democratic Republic of the Congo. Together these deposits comprise a
15km-long continuous zone of mineralisation that contained a pre-mining
endowment of over 775 million tonnes grading 2-3% copper. Konkola West is
located approximately 2,000m southwest of the Mingomba deposit which lies
between the Konkola and Lubambe mines and which is currently being evaluated
by KoBold. KoBold has reported Mingomba to be one of the largest undeveloped
copper deposits in the world.

KoBold is committed under the earn-in Agreement to drill at least two holes
for a minimum of 2,000m of drilling. Drilling of the first hole, KWDD001,
commenced in mid-April and is continuing. The drilling is slow due to the
depth of drilling (now in excess of 2,000m) and the technical challenges in
drilling at such depths in new, undrilled areas. KoBold remains committed to
continuing the hole until it reaches its target horizon or the limits of the
rig's capabilities.

 

Mukai Copper Project  (Zambia, Agreement with First Quantum Minerals, "FQM")

The Mukai Copper Project (Licence 27066-HQ-LEL) covers 55.4 sq. km. and is
located 125km west of Solwezi in the north-western Province of Zambia. It is
currently being transferred to Copernicus.

The licence is directly adjacent to FQM's Trident Project, which includes the
recently opened 35 million tonne Enterprise Nickel Mine and the 894 million
tonne 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.

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

Copernicus has signed a binding letter of agreement ("BLA") giving FQM the
right to earn up to an 80% joint venture interest in the Mukai Project.
Copernicus is carried at a 20% equity level all the way through to the start
of mining.  Full details of the BLA are given in the Company's announcement
dated 7 August 2024.

In 2023, Tertiary carried out a detailed soil sampling programme which
resulted in the identification of a substantial copper-in-soil anomaly on the
Licence as described in the Company's announcement dated 12 September 2023.

FQM is ready to start drilling this dry season provided the necessary local
consents can be obtained in time. A two-phase, 12-hole diamond drilling
programme has been planned to test the copper-in-soil geochemical anomaly.

Jacks Copper Project (Zambia)

The Jacks Exploration Licence 27069-HQ-LEL covers 141.4 sq. km. and is located
85km south of Luanshya in the Central African Copperbelt. It is currently
being transferred to Copernicus.

Copper mineralisation occurs within the southern limb of a large asymmetric
synclinal fold structure. Historical drilling and four holes drilled by
Tertiary suggests that copper occurs in two separate mineralised horizons
which may be discrete mineralised zones but could, alternatively be one
refolded horizon.

In October 2022, Tertiary carried out a programme of soil sampling to follow
up unresolved copper-in-soil anomalies defined during wide spaced soil
sampling by previous operators including Cyprus-Amax and FQM, as well as to
guide follow-up drilling on the Jacks main prospect.

The results of analysis have delineated significant copper-in-soil anomalies
on a number of separate sampling grids with peak values ranging from up to
525ppm copper, a result that compares favourably with soil anomalies in the
vicinity of various ore zones at current and past producing mines on the
Copperbelt.

A programme of pitting is now underway. Approximately 25 pits will be
excavated over key soil sample locations to allow for decisions on follow-up
drilling. Pit samples will be analysed by pXRF. The programme will take
approximately 7 days to complete.

Brunton Pass Copper Project (Nevada, USA)

The Brunton Pass Project is located in central Nevada, 25km northeast of the
high-sulphidation epithermal Paradise Peak gold deposit that produced over 1.6
million ounces of gold and over 44 million ounces of silver and at least 457
tons of mercury.

Mineralisation at Brunton Pass is closely associated with hornfels, skarn and
high-sulphidation-style epithermal alteration.

Soil sampling has delineated several copper-in-soil anomalies and two large
mercury and arsenic in soil anomalies. This was followed up with a drone
magnetic and photogrammetric survey, as well as trenching and geophysical
exploration.

Wide intervals of low-grade copper mineralisation and substantial widths of
hydrothermally altered rock with approximately 1,000 times background content
of the gold indicator elements, arsenic and mercury were returned from
sampling. The IP and resistivity geophysical survey identified a chargeability
anomaly, typical of sulphide mineralisation prospective for copper and/or
gold, extending over 700m through all IP survey lines and spatially related to
the previously identified copper-mercury-arsenic soil and trench anomalies.

Four reverse circulation drill holes have now been planned to test coincident
geochemical and geophysical anomalies and a notice level submission has been
made to the US Bureau of Land Management for drilling approval and bonding.

A drill contract has been negotiated and drilling is provisionally planned to
take place in mid-late October.

Storuman Fluorspar Project (Sweden)

The Company's 100% owned Storuman Project is located in north central Sweden.

Further to the Company's announcement of 6 September 2024 the Board has
decided to appeal the Mining Inspectorate's decision to refuse the Company's
application for a mining concession.

Whilst taking the action now, to keep the Company's options open, the Board is
determined that this legacy project should not be a burden on management time
or Company funds.

 

Notes:

1.         The information in this release has been compiled and
reviewed by Mr. Patrick Cheetham (MIMMM, MAusIMM) who is a qualified person
for the purposes of the AIM Note for Mining and Oil & Gas Companies. Mr.
Cheetham is a Member of the Institute of Materials, Minerals & Mining and
also a member of the Australasian Institute of Mining & Metallurgy.

 

2.         The news release may contain certain statements and
expressions of belief, expectation or opinion which are forward looking
statements, and which relate, inter alia, to the Company's proposed strategy,
plans and objectives or to the expectations or intentions of the Company's
directors. Such forward-looking statements involve known and unknown risks,
uncertainties, and other important factors beyond the control of the Company
that could cause the actual performance or achievements of the Company to be
materially different from such forward-looking statements. Accordingly, you
should not rely on any forward-looking statements and save as required by the
AIM Rules for Companies or by law, the Company does not accept any obligation
to disseminate any updates or revisions to such forward-looking statements.

 

 

 

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