tertiary minerals plc - home - company …...currently: finance director of zincox resources plc and...

Company Presentation

July 2019

Strategy to Build and Develop Multi-Commodity

Project Portfolio - Industrial Minerals, Base and

Precious Metals

Disclaimer

Company Presentation July 2019

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The content of information contained in these slides and the accompanying verbal presentation (together, the “Presentation”) has not been approved by an authorised person

within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance upon this Presentation for the purpose of engaging in any investment activity may

expose an individual to a significant risk of losing all of the property or other assets invested. If any person is in any doubt as to the contents of this Presentation, they should

seek independent advice from a person who is authorised for the purposes of FSMA and who specialises in advising in investments of this kind.

This Presentation is being supplied to you solely for your information. This Presentation has been prepared by, and is the sole responsibility of, Tertiary Minerals plc (the “Company”). The directors of the Company

have taken all reasonable care to ensure that the facts stated herein are true to the best of their knowledge, information and belief.

This Presentation does not constitute, or form part of, an admission document, listing particulars or a prospectus relating to the Company, nor does it constitute, or form part of, any offer or invitation to sell or issue, or

any solicitation of any offer to purchase or subscribe for, any shares in the Company nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any

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Past Performance

This Presentation contains statements regarding the past performance of the Company’s ordinary shares. Past performance cannot be relied upon as a guide to future performance.

Forward-looking Statements

This Presentation or documents referred to in it contain forward-looking statements. These statements relate to the future prospects developments and business strategies of the Company and its subsidiaries (the

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Notwithstanding the aforesaid, nothing in this paragraph shall exclude liability for any representation or warranty made fraudulently.

January 2019

Board of Directors


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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 and Moxico 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.

Project Portfolio


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Pyramid ProjectGold

Paymaster ProjectZinc-Copper-Lead-Silver-Cobalt

MB ProjectFluorspar

USA

Projects

Head OfficeMacclesfield

StorumanFluorspar

LassedalenFluorspar

European

Projects

RosendalTantalum

Kiekerömaa

& KaaresselkäGold

Pyramid Gold Project - Nevada,USA


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• 20 year lease – 9 patented claims

• Additional 25 mining claims staked

• Productive Walker Lane epithermal

gold/porphyry copper belt

• Nevada – 5th largest gold producer in

world

• #1 most desirable mining jurisdiction

in the world – Fraser Institute


Company Presentation June

2019 6

• Historical drill hole PYR 9:

▪ 1.52m grading 17.8 g/t from 94.5 down

hole

▪ Ended in 1.52m grading 2.6 g/t Au at

115.8m depth

• 43 widespread historical surface

samples assayed up to 7.27 g/t Au,

average 1.3 g/t Au

• Cohesive 750m long open-ended gold-

mercury-arsenic soil geochemical

anomaly



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Planned Exploration 20191

• Soil geochemical sampling programme

• IP/Resistivity geophysical survey

• Drilling programme

Paymaster Polymetallic Project - Nevada,USA


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• 19 claims staked

• Grab samples assay

up to 21% Zn, 6.5%

Pb, 3.3% Cu, 253 g/t

Ag and 0.11% Co

• Mineralisation

intermittently

exposed and

sampled over 1.7 km

strike length

• 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: 2251 ppm

Company Presentation June

2019 9

Planned Exploration 20191

• Follow up field work to define

drilling targets

• Potential drilling programme

Paymaster Polymetallic Project - Nevada,USA

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

MRE

▪ 4 holes, 1,553 metres - significant lateral and depth extension of

fluorspar mineralisation proven in the Western Area

• Winner of a National Award

▪ Bureau of Land Management’s (BLM) 2017 Hardrock Small

Operator Award for its outstanding and innovative reclamation

and sustainable mineral development work on the MB Project


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MB Fluorspar Project - Nevada,USA

Planned Work for 20191

• Key Opportunities and Challenges:

▪ Early metallurgical testwork has indicated that part of

the open-pit ore is metallurgically complex, presenting

certain processing challenges, therefore the Company

has engaged the services of one of the world’s leading

consultant fluorspar metallurgists to assist with the

testwork

▪ The Company along with the consultant metallurgist

have scoped the next phase of testwork with work

commenced at SGS Lakefield in Canada - aim to

produce commercial grade acid-spar and mica

▪ Reasonable possibility that fluorspar grades could

increase to the north-west region of the deposit

following field appraisal by world renowned

geologist Dr Richard Sillitoe – future drilling target

▪ Project sensitive to transport distance/cost to market

• Following successful completion of the

testwork and modelling – Scoping Study

targeted for completion in 2019

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


Indicated 25 10.28

Inferred 2.7 9.57

Total 27.7 10.21

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


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”) under which Tertiary will agree to sell to Possehl and Possehl will commit to purchase a

minimum of 70% of commercial grade acid-spar to be produced at Tertiary’s three fluorspar

projects

▪ As a condition of the Offtake Agreement Possehl will provide part of the pre-financing to

Tertiary, where funds will be advanced by Possehl to Tertiary to assist the Company in meeting its

working capital needs and/or its capital investment needs for the development of its fluorspar projects

▪ The MOU provides for Possehl and Tertiary to enter into an Offtake Agreement, and pre-financing

to be provided by Possehl to Tertiary, for 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 as the Company works towards its production goals and the

ultimate signing of the Offtake Agreement

▪ 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

Royalty Interest Project


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Kaaresselkä & Kiekerömaa - Gold, Finland

• Sale of two legacy gold assets in Finland to TSX-V listed Aurion Resources Ltd

• Aurion is a Canadian listed (TSX-V: AU) exploration company primarily focusing on the

development of its Finnish gold projects, several of which are under a joint venture with

B2Gold, a main listed (TSX:BTO, NYSE MKT:BTG) gold producer and developer

• Kinross Gold Corporation own more than 8% of the issued and outstanding share capital of

Aurion

• Deal Highlights:

▪ £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

Summary


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Note 1: All target work programmes are subject to change, funding and successful completion of each phase of work

• Strategy to build and develop multi-commodity project portfolio - Industrial minerals,

base and precious metals

• Multi-commodity and location - reduce future geographical, technical, permitting and

commodity risk exposure

• 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

• Strategic relationship and MOU signed with leading global commodities trading group,

Possehl Erzkontor GmbH & Co. KG (“Possehl”), a wholly owned subsidiary of CREMER

– MOU provides for intention to enter into Offtake Agreement and associated partial

pre-financing

• Exciting new polymetallic project portfolio - Paymaster and Pyramid

• Potential future revenue: Retained Royalty interest in Finnish gold projects

THANK YOU FOR YOUR

TIME AND SUPPORT

Building a Strategic Position

in the Fluorspar Sector

tertiary minerals plc - home - company …...currently: finance director of zincox resources plc and...

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