Tertiary Minerals Plc · LSE:TYM
Tertiary Minerals — Shareholder Meeting (January 2011)
33 slides from Tertiary Minerals's shareholder meeting presentation, Jan 31, 2011
Slide 1: Tertiary Minerals plc Annual General Meeting
Tertiary Minerals plc Annual General Meeting 31 January 2011
Slide 2: Directors & Officers
DIRECTORS & OFFICERS EXECUTIVE CHAIRMAN Patrick Cheetham (Geologist) Company Founder, 20 years public traded company management NON-EXECUTIVE DIRECTORS Donald McAlister (Accountant) Finance Director Mwana Africa PLC. Formerly Finance Director of Ridge Mining & Reunion Mining David Whitehead (Geologi
Slide 3: Project Overview
PROJECT OVERVIEW Fluorspar Gold Iron Rare Earths Storuman Projects Kaaresselkä – Kiekerömaa Kolari Ghurayyah Lassedalen Geographic Focus Interest 100% 100% 100% 50% Other Investments 10% in Sunrise Resources Plc [AIM:SRES] Storuman (CaF2) Lassedalen (CaF2) ‘A diversified mineral explorer and develop
Slide 4: What is Fluorspar and Why is it Important?
WHAT IS FLUORSPAR AND WHY IS IT IMPORTANT ?
Slide 5: Fluorspar Market Dynamics
FLUORSPAR MARKET DYNAMICS Fluorspar – Uses Fluorspar – Supply Rest of World 7.0% China is the dominant Mongolia is a new and South Africa 3.5% producer but exports, once growing producer dominant, are declining Mongolia/CIS 9.6% W.Europe 2.9% European production China is currently small 58.8% Mexico
Slide 6: Influence of China
INFLUENCE OF CHINA Chinese production & consumption Increasing Chinese domestic demand • China accounts for over half of world fluorspar production. 2500 60% increase over 4 • Chinese exports have reduced by 85% since 2004. Prices risen by years 2000 75% in same period. ('000 tonnes) 1500 • China no
Slide 7: Fluorspar market – latest developments
Fluorspar market – latest developments • China is adjusting policy from restricting exports to restricting fluorspar mining to preserve domestic resources. • 2nd January 2010 China declared that it will not permit any new fluorspar mining operations • “By increasing control over production at the mi
Slide 8: Risk of Supply
Fluorspar European Supply Risk 5,0 June 2010: 4,5 Rare Earths Risk of Supply • European Commission 4,0 PGM identifies fluorspar as one of 3,5 14 critical mineral raw 3,0 Supply Risk WBI/HHI Germanium materials Niobium Magnesium 2,5 Antimony Gallium Indium 2,0 Tungsten • high relative economic 1,5 Ba
Slide 9: Fluorspar Prices
Fluorspar Prices World Production: Actual - Predicted Acid-spar mid-market pricing (CIF - Rotterdam) 600 550 500 US$ / tonne 450 400 350 300 Jul-09 Jan-09 Feb-09 Mar-09 May-09 Jun-09 Mar-10 May-10 Jun-10 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Sep-09 Apr-09 Aug-09 Apr-10 Chinese Fluorspar Exports vs. Chi
Slide 10: Storuman Fluorspar Deposit, Sweden
STORUMAN FLUORSPAR DEPOSIT SWEDEN A major resource development opportunity
Slide 11: Storuman Geography
STORUMAN Geography Mo I Rana, Norway Storuman Skellefteå, Sweden Umeå, Sweden Storuman equidistant between 3 major access towns (c.250km)
Slide 12: Excellent Infrastructure & Access
STORUMAN Excellent Infrastructure & access • Adjacent to highway with links to ports of Mo- I-Rana on Atlantic and both Umeå and Skellefteå on Baltic (250km each way). 3.5km • 25km from Regional Town of Storuman - Rail link from Storuman to Umeå. • Established mining area with low population density
Slide 13: Storuman Drilling
STORUMAN Drilling Phases of drilling Granges Tertiary (2008) 10 Holes
Slide 14: Storuman Geology
STORUMAN Geology Moraine Average 16m thick within anticipated Alum Shale open pit boundary Additional mineralised horizon + fluorspar Average 9.8m thick Quartzite Fluorspar present in two horizontally bedded Transition zone layers of sandstone Average 1.2m thick above granite basement Main horizon e
Slide 15: Positive Scoping Study
STORUMAN Positive Scoping Study • Confirmation Drilling (2008) –Tonnage & Grade Estimate • Bench Scale Metallurgical Testwork • Technical & Economic Scoping Study - 2010 Technical and economic studies which include operating and capital cost estimates to an accuracy of +/-35% Tonnage – Grade Estimat
Slide 16: Metallurgical Testwork and Scoping Study Parameters
STORUMAN Bench scale Metallurgical Testwork • Flotation testwork carried out at SGS Lakefield, Canada • Testwork defined conceptual flowsheet and operating parameters for process plant design. • Fluorspar produced is finer grained than normally supplied to market but no resistance found in talks wit
Slide 17: Scoping Study Results
STORUMAN Scoping Study Results Base Case Extended Mine Life Average annual production of Acid- 103.000 tonnes/yr 103.000 tonnes/yr Grade Fluorspar Mine Life 18 yrs 23 yrs Gross Cash generated over Life of $616m $787m Mine Net Cash generated over Life of $137m $174m Mine Initial Capital Costs (CAPEX)
Slide 18: Scoping Study Results – Different Scenarios
STORUMAN Scoping Study Results – Different Scenarios Base Case Extended Mine Life Case NPV (8%) IRR NPV (8%) IRR Study CaF2 Price $33m 24% $41m 24% ($357 CIF Rotterdam) 2009 Average CaF2 Price $104m 45% $120m 45% ($413 CIF Rotterdam) Owner-Operator $47m 25% $57m 25% Mining Fleet (Study CaF2 Price Ba
Slide 19: Scoping Study Fluorspar Product – 103,000 t/yr
'000 tonnes 0 100 200 300 400 500 600 700 800 900 Las Cuevas CFIC Vergenoug Chifeng Tianma Yaroslavsky Fujian Kings STORUMAN Minersa Jinhua Monros Jiangyang Zhejiang Juhua Okorusu Sallies STORUMAN Jiangxi Xinguo Fluorita Samine Company/Deposit Zhejiang Kenya Acid-Grade production 2007 Xiangzhen Hube
Slide 20: Well situated to service EU acidspar markets
STORUMAN Well situated to service EU acidspar markets Storuman 103,000 t/yr Acid-spar producer Acid-spar consumer Total imports of acidspar from sources more distant than Storuman In 2007 Europe and North America imported 845,000 tonnes of acid-spar from sources more distant than Storuman, including
Slide 21: Development towards Production – Site Plan
STORUMAN Development towards Production – Site Plan Horizontal nature of the ore zone lends itself to a small-footprint strip mine with progressive restoration Scoping Study Conceptual layout is likely to change as further drilling results are received and incorporated in more detailed studies
Slide 22: Further studies
STORUMAN Further studies Further feasibility studies initiated…….. • Drilling & Resource Estimate Analysis of 2010 drill samples (in progress) Resource Estimate to be conducted by SRK (Sweden) following receipt of all drill assay results. Expected completion – end March 2011. • Metallurgical testwor
Slide 23: Storuman Drilling
STORUMAN Drilling Phases of drilling Granges Tertiary (2008) Tertiary (2010) Scoping Study Open-pit limits Possible additional Mineral Resource Estimate mineralisation expected by end March 2011
Slide 24: Lassedalen Fluorspar Deposit, Norway
LASSEDALEN FLUORSPAR DEPOSIT NORWAY A second major fluorspar project in Europe
Slide 25: Lassedalen Fluorspar
Lassedalen Fluorspar New project announced 8 July 2010 Located 80km Boliden Odda South-west of Oslo Aluminium Fluoride Plant Lassedalen Port of 320km Drammen Located close to Highway E134 40km European Markets …….. a second major fluorspar project in Europe
Slide 26: Lassedalen Fluorspar
Lassedalen Fluorspar Shaft III Plan View Central 560m section of vein explored by shallow underground development drive during WWII Shaft I Steeply dipping fluorspar vein system in 8km long breccia zone Highway E134 Vein Follows Lassedalen Steam Norsk Hydro drilled 28 diamonds holes in 1974-75 2.7km
Slide 27: Lassedalen Fluorspar
Lassedalen Fluorspar I.2 million tonnes contained fluorspar 3m/42% 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 walls of development dri
Slide 28: Lassedalen Market Opportunities
Lassedalen Fluorspar Market Opportunities • Road transport to major Norwegian acidspar consumer. • Export of acid-spar to Europe. • Investigate opportunities for production of metallurgical grade fluorspar (metspar). • The European steel sector imported 175,000 tonnes of metspar in 2007 Metallurgica
Slide 29: Additional Projects
ADDITIONAL PROJECTS Gold Iron Rare Earths The Company’s tenure over this project is Projects currently Kaaresselkä – Kiekerömaa Kolari Ghurayyah dependent on the issue of a replacement exploration Geographic Focus licence. Interest 100% 100% 50% Tertiary’s Sivakkalehto claims Inferred Resource (JORC
Slide 30: Key Points
KEY POINTS • Tertiary Minerals plc is one of a very limited number of listed companies offering an exciting exposure to looming fluorspar market shortage. • Fluorspar market is going through a “paradigm shift” – with China evolving from a large net exporter to a potential net importer. • Recent scop
Slide 31: Share Price Performance – 1 Year
SHARE PRICE PERFORMANCE – 1 YEAR Strong perfomance – improved liquiity
Slide 32: Disclaimer
DISCLAIMER 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 individual to a significant risk of losing all of th
Slide 33: Thank You
Thank You Storuman, Sweden Tertiary Minerals plc For further information please contact: Tertiary Minerals plc Broker/Nomad Public Relations Seymour Pierce Limited Yellow Jersey PR Patrick Cheetham Executive Chairman Stewart Dickson Dominic Barretto Tel: +44 (0)1625 626203 Tel: +44 (0)207 107 8335 T
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