TIDMTYM
RNS Number : 1921A
Tertiary Minerals PLC
28 May 2019
28 May 2019
Tertiary Minerals plc ("Tertiary" or "the Company")
New Project Acquisition
Tertiary Minerals plc is pleased to advise that it has secured
exploration rights and an option to purchase a group of claims in
the Pyramid Mining District of Nevada. The project is located 25
miles northwest of Reno and is easily accessible by sealed
highway.
Pyramid Project Highlights
-- 20-year lease secured over group of 9 patented claims with
option to purchase (subject to underlying royalties)
-- Additional 25 mining claims staked to cover additional targets along strike
-- Located in productive Walker Lane porphyry copper/epithermal gold belt
-- Limited historical exploration (1989-90) has defined priority epithermal vein drill target:
Ø Drill hole PYR 9 - intersected visible gold and assayed 1.52m
grading 17.8 g/t Au from 94.5m down hole
Ø PYR 9 ended in 1.52m grading 2.6 g/t Au at 115.8m depth
-- PYR 9 was only drill hole to effectively test a cohesive 750m
long open-ended gold-mercury-arsenic soil geochemical anomaly
-- Claims contain a number of untested epithermal veins and
stockwork target zones - 43 widespread surface samples assayed up
to 7.27 g/t Au and averaged 1.3 g/t Au
-- The State of Nevada:
Ø 5th largest gold producer in world
Ø 5.6 M oz of gold produced in 2017
Ø 169.1 M oz of gold produced 1835-2018
Ø Ranked #1 most desirable mining jurisdiction in the world by
The Fraser Institute
Commenting today, Managing Director, Richard Clemmey said:
"We are delighted to have acquired an interest in the Pyramid
Project. Projects with high-grade gold results in drilling that
have not already been followed up are hard to find in Nevada. This
acquisition follows the staking of the Paymaster Project earlier
this year and is in line with our strategy to build a new project
portfolio which will enable the Company to reduce its future
geographical, technical, permitting and commodity risk exposure and
provide long-term shareholder value".
Maps showing the location of various features described in this
news release will be available on the Company's website in due
course.
Enquiries
Tertiary Minerals plc
Richard Clemmey, Managing Director
Patrick Cheetham, Chairman +44 (0) 1625 838 679
SP Angel Corporate Finance LLP
Nominated Adviser & Broker
Lindsay Mair/Caroline Rowe +44 (0) 20 3470 0470
SVS Securities plc
Joint Broker
Elliot Hance +44 (0) 203 700 0093
Detailed Information
Location
Tertiary's Pyramid Project is located 40km northwest of Reno in
the Pyramid Mining District and is readily accessible from State
Highway 445 which crosses the northwest tip of the project.
The Property
The Company has secured a 20-year lease with option to purchase
a group of 9 patented mining claims. In addition, the Company has
staked a further 25 unpatented mining claims adjoining the patents
to cover potential extensions along strike.
Patented mining claims are considered as private property under
US law and have the advantage that mineral exploration and surface
disturbance below 5 acres can be carried out without permits and,
in general, mine permitting is a more straightforward process.
Geology & Mineralisation
The Pyramid Mining District lies at the northwest end of the
Walker Lane mineral belt a major northwest trending structural
deformation zone and a highly productive gold, silver and copper
producing region which is host to numerous past and currently
producing multi-million ounce epithermal gold deposits as well
porphyry copper and porphyry molybdenum deposits.
Within the Pyramid Mining District, the Company's Pyramid
Project is underlain by a thick sequence of mid-late Tertiary age
(23 Ma old) rhyolitic tuffs interpreted by the Nevada Bureau of
Mines & Geology to have formed within an east-west elongated
Caldera structure named the Perry Canyon Caldera.
The gold veins at Pyramid lie within the Perry Canyon Caldera
and are interpreted from historical mapping and mineral exploration
to lie on the margins of a large and deeply buried porphyry system
in the southeast part of the district that is currently claimed by
copper producer Asarco LLC (a division part of Groupo Mexico). At
the higher erosional levels currently preserved at Pyramid such
porphyry systems are prospective for high-sulphidation gold
deposits (in more central areas) such as those found further south
in the Walker Lane at the Goldfield Mining District (4 million
ounces of past production at 1oz gold/ton) and low and
intermediate-sulphidation epithermal deposits (of which there are
many examples in the Walker Lane) in more peripheral areas where
the Company's claims are located. This pattern of mineralisation is
similar to that of many large porphyry systems in the US, Peru and
the Pacific basin countries.
In the main part of the Pyramid District precious metals were
mined from three moderately to steeply dipping, northwest-striking
vein systems named after the prominent mines that occur along them
- Ruth, Burrus, and Bluebird. The Company's claim interests cover
the Ruth vein system and a number of parallel vein systems and
zones of alteration. In addition to abundant quartz and pyrite,
vein minerals in unoxidized ore from the Ruth vein system include
barite, anglesite, galena, sphalerite, acanthite, gold and
cassiterite.
Past Mining & Exploration
The Pyramid Mining District was established in 1866 with only
small-scale production reported. Modern exploration in the Pyramid
District has focussed primarily on the search for porphyry copper
mineralisation with only limited exploration having been carried
out for gold.
The only documented field exploration in the area of the
Company's claims was carried out by Battle Mountain Gold Mining
("Battle Mountain") who leased the project from the current
lessors, Golden Crescent Corporation, in the period 1988-89. Battle
Mountain carried out surface sampling, soil sampling and drilled 10
shallow exploration holes for a total of 1,006m of drilling to
depths between 43 and 140m.
Soil sampling was conducted on a 30 x 120m grid within a
confined area 600m x 600m centred on Battle Mountain's main target
area, the Ruth Mine vein system and associated vein stockwork. This
identified a series of gold-in-soil anomalies and eight of their
ten drill holes were designed to test a broad gold anomaly located
just northwest of the Ruth Mine. These intersected areas of
anomalous gold up to 1.5m grading 1.64 grammes/tonne gold (g/t Au)
in hole PYR 1 from 10.7m depth.
Battle Mountain's two other drill holes were designed to test a
parallel vein west of the Ruth vein system which correlates with a
separate strong gold-arsenic-mercury soil anomaly, mercury and
arsenic being strongly associated with gold in epithermal gold
deposits. This soil anomaly is open ended and continues strongly to
the northwest and southeast boundaries of the sampled area.
Drill hole PYR 9 on this western line intersected high-grade
gold mineralisation and visible gold within a sample thickness of
1.52m grading 17.8 g/t Au from 94.5m downhole. A broad zone of
low-grade mineralisation continued to the end of the hole at 115.8m
where the last 1.52m sample graded 2.6 g/t Au.
PYR 10 targeted the same western line soil anomaly some 150m to
the southwest but was interpreted to have been drilled in the wrong
direction and made no significant gold intersections.
Battle Mountain did not carry out any follow up exploration.
Proposed Mineral Exploration - Tertiary Minerals plc
The association of high-grade gold mineralisation in a previous
drill hole associated with a strong and open-ended gold soil
anomaly supported strongly by epithermal pathfinder elements
mercury and arsenic presents a compelling drill target.
Similar narrow high-grade epithermal gold deposits in Nevada
have hosted multi-million-ounce deposits such as the producing
Midas Mine where the main veins produced more than 2.2 million
ounces of gold and 26.9 million ounces of silver between 1998 and
2013.
Tertiary Minerals intends to follow up Battle Mountain's
drilling and soil sampling results with an initial RC and core
drilling programme as soon as possible. Core drilling is
recommended as water, which can affect sample quality, was
encountered in drilling both holes PYR 9 & 10.
The broader potential of the vein systems on the Project area
are highlighted by the results of 43 surface chip samples taken by
Battle Mountain from various outcropping veins and old mine
workings within the Company's Project area. These assayed up to
7.27 g/t Au and averaged 1.3 g/t Au.
This high prospectivity was confirmed by surface grab carried
out by the Nevada Bureau of Mines & Geology during a regional
assessment in 1999 when samples from the 1km long Ruth vein System
averaged 1.3 g/t gold and 131 g/t silver (Garside et al 2003). The
highest gold content, 8 g/t Au, was from the Surefire Mine area
which has never been drill tested.
A series of maps illustrating the features described in the News
Release will be uploaded to the Company's website in due
course.
Summary of Terms of Lease/Option
Advanced Annual Minimum Royalty Payments:
-- $15,000 payable on signing
-- $12,500 payable on or before 12 months from date of agreement
-- $12,500 payable on or before 18 months from date of agreement
-- $20,000 payable on or before 24 months from date of agreement
-- $20,000 payable on or before 30 months from date of agreement
-- $27,500 payable on or before 36 months from date of agreement
-- $27,500 payable on or before 42 months from date of agreement
-- $35,000 payable every 6 months from 48 months after the date of the agreement
Option to buy property (required to purchase property prior to
commencement of mining):
-- $1,500,000 - At any time before the end of Lease Year 5
-- $2,000,000 - At any time after Lease Year 5 and before the end of Lease Year 10
-- $2,500,000 - At any time after Lease Year 10 and before the end of Lease Year 20
Royalty Payable:
-- 2% Net Smelter Return
-- Where underlying pre-existing Royalties exist(2) on a
particular claim then the 2% Royalty payment on that claim will be
reduced by a variable amount to minimise the impost of multiple
royalty payments
-- Advanced Royalty Payments credited against royalty payment entitlements
-- Royalty Area of Interest: 0.5 miles
-- Right to buy one half of royalty for $1,000,000 at any time
before start of mine and/or plant construction
-- Advanced royalty payments not credited against royalty buyout
-- Royalty retained after property buyout (subject to half purchase right)
References:
Nevada Bureau of Mines and Geology Map 146. 2003. Geology of the
Fraser Flat Quadrangle and the west half of the Moses Rock
Quadrangle, Washoe County, Nevada. Larry J. Garside, Stephen B.
Castor, Craig M. dePolo, and David A. Davis, with a section on
aeromagnetic lineament analysis, Warm Springs Valley, by Michael C.
Widmer.
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. Three of the nine claims subject to the lease agreement are
known to be subject to a third party
underlying 4% gross proceeds royalty.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Notes to Editors
Tertiary Minerals plc (ticker symbol 'TYM') is an AIM-traded
mineral exploration and development company building a
multi-commodity project portfolio.
CAUTIONARY NOTICE
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACQUSOVRKOAVUAR
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