Company Presentation
August 2019
TERTIARY MINERALS PLC
Building and Developing a Multi-Commodity
Project Portfolio – Precious Metals, Base
Metals and Industrial Minerals.
Disclaimer
2
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January 2019
Company Presentation August 2019
Board of Directors
3
Donald McAlister, Non-Executive Director
• Accountant.
• Previously: Finance Director at Mwana Africa plc, Ridge Mining plc and Reunion
Mining. Currently: Finance Director of ZincOx Resources plc
• 24 years’ experience in all financial aspects of the resource industry, including metal
hedging, tax planning, economic modelling/evaluation, project finance and IPO’s.
• Founding director of the Company.
Patrick Cheetham, Chairman
• Geologist.
• 37 years’ experience in mineral exploration.
• 32 years’ experience in public company management.
• Founder of the Company, Dragon Mining Ltd, Archaean Gold NL and Sunrise
Resources plc.
Richard Clemmey, Managing Director
• Chartered Engineer.
• 25 years’ experience in developing and managing mining/quarrying projects
worldwide for Derwent Mining, Lafarge, Hargreaves (GB) Ltd, Marshalls plc and
CFE.
• Board Director since May 2012.
Company Presentation August 2019
Project Portfolio
4
Pyramid ProjectGold
Paymaster ProjectZinc-Copper-Lead-Silver-Cobalt
MB ProjectFluorspar
USA
Projects
Head OfficeMacclesfield
StorumanFluorspar
LassedalenFluorspar
European
Projects
RosendalTantalum
Kiekerömaa
& KaaresselkäGold
Company Presentation August 2019
Pyramid Gold Project - Nevada, USA
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• Nevada – 5th largest gold producer in
the world
• #1 most desirable mining jurisdiction in
the world – Fraser Institute
• Excellent infrastructure - adjacent to
sealed highway, 25 miles NW of Reno,
Nevada.
• In productive Walker Lane epithermal
gold/porphyry copper belt – host to
numerous multi million ounce gold and
silver deposits
e.g. Goldfield (4.2Moz Au)
Comstock (8.3Moz Au, 192Moz Ag)
Tonopah (1.8Moz Au, 180Moz Ag)
Reno
Company Presentation August 2019
Pyramid Gold Project – Licence Holdings
6Company Presentation August 2019
9 Patented Claims held under 20 year
lease/purchase option (patented
claims have private land status)
25 unpatented claims staked by
Tertiary
Reno
Pyramid Gold Project – Historical Exploration
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• Prospector scale workings with little historical
record from late 19th/early 20th century
• Battle Mountain Gold Explored in 1980s carried
out:
• Surface rock sampling:
43 widespread historical surface
samples assayed up to 7.27g/t Au,
average 1.3 g/t Au
• Soil sampling over area approx. 600m by
600m
Cohesive and open ended gold-in-soil
anomalies including cohesive 750m
long open-ended gold-mercury-arsenic soil
geochemical anomaly on “Western Line”
• 10 drill holes, 8 in Ruth Mine area, 2 on
“Western Line”
Ruth Mine
Western
Line
Company Presentation August 2019
Pyramid Gold Project – Historical Drilling
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Ruth Mine
Western Line
Company Presentation August 2019
• Battle Mountain drilling focused on Ruth Mine
area - best result 1.5m grading 1.64 g/t Au
• Only one hole effectively tested Western Line ~
PYR 9:
▪ 1.52m grading 17.8 g/t Au from 94.5
down hole
▪ Ended in 1.52m grading 2.6 g/t Au at
115.8m depth in wide alteration zone
Pyramid Gold Project – Soil Anomalies
9Company Presentation August 2019
ARSENICGOLD
MERCURY
Pyramid Gold Project – Western Line Target
Company Presentation July 2019
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WESTERN LINE:
Priority drill target based on:
• Historic workings
• 750m+ long, open ended, coincident multi-element
soil anomaly
• Drill hole PYR 9:
1.52m grading 17.8 g/t Gold from 94.5 down hole
• Wide alteration zone
Western Line Mine workings
Looking southWide alteration zone on Western Line
Pyramid Gold Project - Nevada,USA
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Planned Exploration 20191
• Soil geochemical sampling programme – to extend open anomalies
• IP/Resistivity geophysical survey – to define ore channels
• Drilling programme - to test Western Line target
Company Presentation August 2019
Paymaster Polymetallic Project - Nevada, USA
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• 19 claims staked
• Mineralisation
intermittently exposed
and sampled over 1.7
km strike length
• Grab samples assay
up to 21% Zn, 6.5%
Pb, 3.3% Cu, 253 g/t
Ag and 0.11% Co
• 165 soil samples taken
in March 2019 –
significant elevated
levels of Ag, Cu, Zn,
Co and Pb:
▪ Ag: 17.5 ppm
▪ Cu: 896 ppm
▪ Zn: 872 ppm
▪ Co: 33 ppm
▪ Pb: 2,251 ppm
Company Presentation August 2019
Follow up prospecting in May 2019 identified two prospects for follow up work
East Slope & Valley Prospects
Valley
Prospect
East Slope
Prospect
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Paymaster Project – East Slope Prospect
East Slope Prospect:
• Chip sample c. 2m @ 15.8% zinc
& 95 g/t silver
• Associated zinc soil anomaly - 600m long
• Work planned:
• Infill soil sampling
• Magnetic survey
• Follow up drilling as required
Company Presentation August 2019
15.8% Zinc, 95 g/t Silver
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Paymaster Project – Valley Prospect
Valley Prospect:
Large outcropping skarn zone – c. 350m long and up to 8m thick
Mine shaft on skarn
Waste material sampled:
11.8% zinc+lead, 180 g/t silver
Work planned:
• Magnetic survey
• Detailed mapping & sampling
• Drill targeting
Fluorspar – A Strategic Mineral
15Company Presentation August 2019
• Fluorspar is the commercial name for the mineral
fluorite, composed of calcium and fluorine (CaF2)
• Fluorspar is the predominant commercial source for
the chemical element fluorine
• Fluorine is a STRATEGIC non-metallic element and
the lightest of the halogens and is therefore largely
irreplaceable
• Two principal commercial grades:
➢ Metallurgical grade/Met-spar (60-96% CaF2)
➢ Acid grade/Acid-spar (+97% CaF2)
Company holds three Fluorspar deposits with defined Mineral Resources
MB Fluorspar Project - Nevada,USA
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Highlights
• Phase 1, 2 & 3 drilling programmes
▪ 35 holes, 5,736 metres
• Large JORC Compliant Mineral Resource Estimate
Classification Million Tonnes (Mt) Fluorspar (CaF2%)
Indicated (9% CaF2 cut-off) 6.1 10.8
Inferred (9% CaF2 cut-off) 80.3 10.7
Total 86.4 10.7
• Phase 4 drilling programme completed following
JORC Mineral Resource Estimate
▪ 4 holes, 1,553 metres - significant lateral and depth extension
of fluorspar mineralisation proven in the Western Area
Company Presentation August 2019
• Key Opportunities and Challenges:
▪ Metallurgical testwork has indicated that part of the open-pit ore is metallurgically
complex, presenting certain processing challenges
▪ Company has engaged the services of one of the world’s leading consultant fluorspar
metallurgists to assist with the testwork
▪ Project sensitive to transport distance/cost to market
▪ Targeting potential for higher grades to the north-west of deposit following field appraisal
by world renowned geologist Dr Richard Sillitoe.
Storuman Fluorspar Project - Sweden
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Positive Scoping Study – Scott Wilson
• Low Capex: US$ 46 million
• Average annual T/O: >US$ 34 million
• Pre-Tax NPV (8% coc): US$ 33 million
• IRR (100% Equity): 24%
• Payback: <3 years
Post Scoping Study – Key Developments
• 46 diamond core drill holes resulting in 28% increase
in Mineral Resource compared with Scoping Study –
JORC Classified
• New Bulk Rail Terminal constructed – 25km from
project site
• Waste:ore strip ratio reduced from 2.2t:1t to 0.8t:1t
• Potential step-change for scale of mineralisation,
open laterally in all directions
• 25 Year Mine Permit awarded 2016, has since
been revoked due to wider changes in Swedish
case law – Appeal process ongoing with the
Swedish Government
JORC Mineral Resource Estimate
Classification Million Tonnes (Mt) Fluorspar (CaF2%)
Indicated 25 10.28
Inferred 2.7 9.57
Total 27.7 10.21
Company Presentation August 2019
Lassedalen Fluorspar Project - Norway
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Highlights
• Positive Scoping Study (Wardell Armstrong International) – 2012
Base Case Extended Mine CaseTonnage Mined (Underground) 3.6mt @ 22.4% Fluorspar 4.5mt @22.4% Fluorspar
Mining Rate 543,000 tpa 543,000 tpa
Acid Grade Fluorspar production/year 100,000 tpa 100,000 tpa
Mine Life 6.6 years 8.25 years
Initial Capital Cost (Capex) US$ 78 million US$ 78 million
Pre-Tax NPV (10% coc) US$ 31.6 million US$ 52.2 million
IRR (100% Equity) 20.20% 24.10%
• JORC Mineral Resource Estimate (SRK
consulting)
• Re-logged and sampled 3.5 km of drill core from
23 of the 28 diamond holes drilled in the 1970’s
JORC Mineral Resource Estimate
Classification Million Tonnes (Mt) Fluorspar (CaF2%)
Inferred 4 24.6
Strategic Relationship - Possehl Erzkontor GmbH& Co. KG
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Memorandum of Understanding (“MOU”) signed with
• Highlights and Key Terms:
▪ Possehl and Tertiary intend to enter into a definitive purchase and sales agreement (“Offtake
Agreement”) for a minimum of 70% of Tertiary’s acid-grade fluorspar production
▪ Possehl will provide part of the pre-financing to Tertiary for working capital needs and/or its
capital investment needs for the development of its fluorspar projects
▪ The MOU provides extends to any near-term revenue generating fluorspar acquisition targets
▪ Possehl will provide invaluable commercial and logistical support and advice to Tertiary during
the development of its fluorspar projects
▪ Possehl, founded in 1915 with headquarters in Lübeck, Germany, is owned by CREMER:
(Founded in 1946; headquarters in Hamburg; circa 70 branch offices and holdings worldwide; circa
1800 employees; annual revenue of >3 billion Euro; sales volume of >10.4 million tonnes in 2016)
▪ Possehl continue to support Tertiary with the development of its fluorspar assets and
evaluation of new projects in the pipeline
Company Presentation August 2019
Royalty Interest Project
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Kaaresselkä & Kiekerömaa - Gold, Finland
• Two legacy gold assets in Finland sold to TSX-V listed Aurion Resources Ltd
• Aurion is a Canadian listed (TSX-V: AU) exploration company 8% owned by Kinross Gold
Corporation and primarily focusing on the development of its Finnish gold projects.
• Deal Highlights:
▪ Received £100,000 initial consideration paid by Aurion: £15,000 in cash and £85,000 in
Aurion shares – sold in Nov 2017 resulting in a profit of £31,264
Tertiary retains royalty interest in the projects:
▪ Pre-Production Royalty on definition of a NI 43-101 (or equivalent) Code compliant
Minerals Resource Estimate on either project:
▪ US$1.00 – US$2.00 – US$3.00 ounce gold: Inferred-Indicated-Measured Mineral
Resources
▪ Net Smelter Returns Royalty (NSR) of 2% on all future gold production from either
property (Aurion can purchase 50% of the NSR from Tertiary for USD$1,000,000 at any
time prior to commencement of commercial production on either project
Company Presentation August 2019
Summary
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• Turnaround Strategy to:
• Build and develop multi-commodity project portfolio – Precious metals, Base Metals and Industrial
Minerals
• Reduce future geographical, technical, permitting and commodity risk exposure
• Exciting new polymetallic project portfolio - Paymaster and Pyramid
• Additional project acquisitions in the pipeline – focus on low cost claim staking
• Three 100%-owned fluorspar assets strategically located in the USA and Europe: 13.1 million tonnes
contained fluorspar (CaF2) resources (JORC classified) - advancing through mine development cycle.
Current Fluorspar price approx. $500/tonne
• Strategic relationship and MOU signed with leading global commodities trading group, Possehl Erzkontor
GmbH & Co. KG – MOU provides for intention to enter into Offtake Agreement and associated partial pre-
financing
• Potential future revenue: Retained Royalty interest in Finnish gold projects
Company Presentation August 2019