TERTIARY MINERALS PLC Building and Developing a Multi-Commodity - - PowerPoint PPT Presentation

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TERTIARY MINERALS PLC Building and Developing a Multi-Commodity - - PowerPoint PPT Presentation

Comp Compan any P y Prese esent ntation tion Jun une e 20 2020 20 Strategy to Build and Develop Multi-Commodity Project Portfolio - Industrial Minerals, Base and Precious Metals TERTIARY MINERALS PLC Building and Developing a


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SLIDE 1

Comp Compan any P y Prese esent ntation tion Jun une e 20 2020 20 TERTIARY MINERALS PLC

Building and Developing a Multi-Commodity Project Portfolio – Precious Metals, Base Metals and Industrial Minerals.

Strategy to Build and Develop Multi-Commodity Project Portfolio - Industrial Minerals, Base and Precious Metals

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SLIDE 2

Disclaimer

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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 inducement to enter into any contract therefor. The information in this Presentation is provided as at the date of this presentation and as such is preliminary in nature, has not been fully verified by the Company and is subject to material amendment, updating and

  • change. The Company undertake no obligation to provide the recipient with access to any additional information or to update this Presentation or any additional information or to correct any inaccuracies in any such

information which may become apparent. This document sets out certain features of the Company and does not purport to provide a complete description of the Company or the shares in the Company. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness thereof, nor is any responsibility accepted for any errors, misstatements in, or omission from, this Presentation or any direct or consequential loss however arising from any use of, or reliance on, this Presentation or otherwise in connection with it. By accepting this Presentation you confirm, represent and warrant that you have consented to receive information in respect of securities of the Company and other price-affected securities (as defined in the Criminal Justice Act 1993 (“CJA”)) which makes you an “insider” for the purposes of Part V of the CJA, and you agree not to deal in any securities of the Company until such time as the inside information (as defined in the CJA)

  • f which you have been made aware has been made public for the purposes of the CJA.

This Presentation may not be reproduced or redistributed, in whole or in part, to any other person, or published, in whole or in part, for any purpose without the prior consent of the Company. The contents of this Presentation are confidential and are subject to updating, completion, revision, further verification and amendment without notice. The Presentation is being distributed on request only to, and is directed at, authorised persons or exempt persons within the meaning of FSMA or any order made thereunder or to those persons falling within the following articles of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Financial Promotion Order”): Investment Professionals (as defined in Article 19(5)), members and creditors of certain bodies corporate (as defined in Article 43 (2)) High Net Worth Companies (as defined in Article 49(2)). Persons who do not fall within any of these definitions should not rely on this Presentation nor take any action upon it but should return it immediately to the Company. This Presentation is exempt from the general restriction in section 21 of FSMA relating to the communication of invitations or inducements to engage in investment activity on the grounds that it is made only to certain categories of persons. Neither this Presentation nor any copy of it should be distributed, directly or indirectly, by any means (including electronic transmission) to any persons with addresses in the United States of America (or any of its territories or possessions) (together, the “US”), Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, or to any corporation, partnership or other entity created or organised under the laws thereof, or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement. The recipients should inform themselves about and observe any such requirements or relationship. The Company’s ordinary shares have not been, and are not expected to be, registered under the United States Securities Act 1933, as amended, (the “US Securities Act”) or under the securities laws of any other jurisdiction, and are not being offered or sold, directly or indirectly, within or into the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland or to, or for the account or benefit of, any US persons or any national, citizen or resident of the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, unless such offer or sale would qualify for an exemption from registration under the US Securities Act and/or any other applicable securities laws. 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 “Group”). Forward-looking statements are identified by the use of such terms as “believe”, “could”, “envisage”, “estimate”, “potential”, “intend”, “may”, “plan”, “will” or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements contained in this Presentation are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Group’s actual results may vary materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place any reliance on forward-looking statements. These forward-looking statements speak only as at the date of this Presentation. No undertaking, representation, warranty or other assurance, expressed or implied, is made or given by or on behalf of the Company or any of its directors, officers, partners, employees or advisers or any other person as to the accuracy or the completeness of the information or opinions contained herein and to the extent permitted by law no responsibility or liability is accepted by any of them for any such information or opinions. Notwithstanding the aforesaid, nothing in this paragraph shall exclude liability for any representation or warranty made fraudulently. January 2019

Company Presentation June 2020

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SLIDE 3

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 June 2020

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SLIDE 4

Project Portfolio

4

Pyramid Project

Gold

Paymaster Project

Zinc-Copper-Lead-Silver- Cobalt

MB Project

Fluorspar

USA USA Pr Projec

  • jects

ts

Head Office

Macclesfield

Storuman

Fluorspar

Lassedalen

Fluorspar

Eur Europea

  • pean

n Pr Projects

  • jects

Rosendal

Tantalum

Kiekerömaa & Kaaresselkä

Gold Company Presentation June 2020

Peg Leg Project

Zinc-Copper-Lead-Silver

Mt Tobin Prospect

Silver

Lucky Prospect

Copper

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SLIDE 5

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 June 2020

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SLIDE 6

Pyramid Gold Project – Licence Holdings

6 Company Presentation June 2020

9 Patented Claims held under 20 year lease/purchase option (patented claims have private land status) 25 unpatented claims staked by Tertiary

Reno

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SLIDE 7

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 June 2020

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SLIDE 8

Pyramid Gold Project – Historical Drilling

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Ruth Mine Western Line

Company Presentation June 2020

  • 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

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SLIDE 9

Pyramid Gold Project – Soil Anomalies

9 Company Presentation June 2020

ARSENIC GOLD MERCURY

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SLIDE 10

Pyramid Gold Project – Western Line Target

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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 south Wide alteration zone on Western Line

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SLIDE 11

Pyramid Gold Project - Nevada,USA

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Exploration Update 2020

  • Initial drill hole has been successfully completed and drilled to a total depth of 137m
  • Intersection of 0.55m grading 2.01 g/t Au from 82.6m down hole, confirming that the

target zone is gold-mineralised

  • Potential further exploration work: Soil sampling to fully delineate the gold, silver and

multi-element soil geochemical anomaly and to define further drill targets

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SLIDE 12

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 June 2020

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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SLIDE 13

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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 June 2020

15.8% Zinc, 95 g/t Silver

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SLIDE 14

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 for 2020:

  • Magnetic survey
  • Detailed mapping & sampling
  • Drill targeting
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SLIDE 15

Peg Leg Polymetallic Project - Nevada, USA

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  • 4 claims, 11km north of Tonopah in

the San Antone Mineral Field, south-central Nevada

  • Main target – exposed skarn

copper-silver mineralisation in limestone adjacent to granite contact

  • Outcropping mineralisation

assayed 59 grammes/tonne (g/t) silver 1.4% copper, 2.4% lead and 1.8% zinc

  • Waste samples from old workings

assay up to 181 g/t silver, 3.9% copper, 10.1% lead and 1.2% zinc

  • Notice Level Permit submitted for

trenching programme

Company Presentation June 2020

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SLIDE 16

Mt Tobin Silver Prospect - Nevada, USA

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  • 4 claims staked, 73km south of

Winnemucca in north-central Nevada

  • Covers large area of hydrothermal

alteration 60m wide x 1,200m long

  • Large silver geochemical anomaly

recorded by previous explorer

  • Mapping and sampling planned

Company Presentation June 2020

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SLIDE 17

Lucky Copper Prospect - Nevada, USA

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  • 13 claims, 96 km northeast of the

major porphyry copper mining town

  • f Ely, north-east Nevada
  • Copper gossan exposed in old

workings

  • 1951 drill hole ended in

mineralisation, intersected 20.4m at 0.65% copper to bottom of the hole at 77.7m depth

  • Targeting disseminated

replacement/porphyry copper mineralisation

  • Mapping, geophysics and soil

sampling planned to help define drill targets

Company Presentation June 2020

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SLIDE 18

Fluorspar – A Strategic Mineral

18 Company Presentation June 2020

  • 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

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SLIDE 19

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

  • f fluorspar mineralisation proven in the Western Area

Company Presentation June 2020

  • 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.

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SLIDE 20

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,
  • pen 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 June 2020

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SLIDE 21

Lassedalen Fluorspar Project - Norway

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Highlights

  • Positive Scoping Study (Wardell Armstrong International) – 2012

Base Case Extended Mine Case

Tonnage 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

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SLIDE 22

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 June 2020

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SLIDE 23

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 June 2020

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SLIDE 24

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, Pyramid, Peg Leg, Mt Tobin and Lucky
  • 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 June 2020