Tertiary Minerals boosted by Lassedalen report
TERTIARY Minerals, the AIM-listed exploration and development company, has reported positive progress in its scoping study to assess the viability of a fluorspar project in Norway.
The Cheshire company said the independent research on its Lassedalen site by Wardell Armstrong International indicates that an underground mine and processing plant is commercially viable
At a production rate of 100,000 tonnes of acid grade fluorspar concentrate per year, the study projects $325m in revenue over a 6.6 year minelife and $78m initial capital cost.
Annual pre-tax cashflow in excess of $25m is predicted, with payback within 34 months of the production start date.
Tertiary Minerals’ operatiosn director Richard Clemmey said: “”I am pleased with the positive results of the Lassedalen Scoping Study. These results further strengthen the implementation of Tertiary’s strategy to become a leading fluorspar producer through the development of the company’s 100% owned fluorspar projects.
“Lassedalen and Storuman will have a combined production target of 200,000 tonnes of acid grade concentrate per year.
“The results of the study, coupled with firm fluorspar prices and the declining supply of fluorspar from China, gives the company confidence to progress the Lassedalen project to the next stage of development with further drilling now planned. The board looks forward to updating the market in due course.”
Fluorspar is an essential raw material in the chemical, steel and aluminium industries. As well as Lassedalen, Tertiary controls the Storuman project in Sweden.
