Tertiary Minerals plc - Company Presentation …...Currently: Finance Director of ZincOx Resources plc • 24 years’ experience in all financial aspects of the resource industry,

Company Presentation

August 2019

TERTIARY MINERALS PLC

Building and Developing a Multi-Commodity

Project Portfolio – Precious Metals, Base

Metals and Industrial Minerals.

Disclaimer

2

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

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

January 2019

Company Presentation August 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

• 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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• 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


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


Pyramid Gold Project – Historical Drilling

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Ruth Mine

Western Line


• 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


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


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


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


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


• 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


• 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



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



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


Royalty Interest Project

20

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


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


Documents

Tertiary Minerals plc - Company Presentation …...Currently: Finance Director of ZincOx Resources plc • 24 years’ experience in all financial aspects of the resource industry,