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Fluorspar explorer Tertiary Minerals (LON:TYM) has upgraded the resource at its MB project in Nevada, USA, by more than double.
The new resource is 86.4mln tonnes, a 126% increase on the previous estimate, with 6.1mln tonnes in the indicated category and 80.3mln inferred.
Average grades were 10.7% with a 9% cut-off grade applied.
Tertiary added the deposit remains open in all directions and at depth.
Overall across the portfolio, so including the Storuman, Lassedalen and MB projects, the firm has lifted its total fluorspar resource by 67%.
Richard Clemmey, managing director, said a significant increase in the mineral resource estimate at MB had been the overall objective of the phase 3 drilling programme.
“We are very excited about the sheer size potential of the MB Deposit and believe that, eventually, the deposit size will far exceed the current estimates.
"The higher fluorspar grades and thick intersections which have been encountered in the newly defined Western Area during Phase 3 leads the directors to believe that this area is closer to the core of the mineralised system where higher grade fluorspar mineralisation might be expected.”
Fluorspar is a chemical used in fridge coolants, aluminium manufacturing and other industrial processes where it can replace ozone depleting alternatives.
Acid-spar, used in fluorine based chemicals, represents the largest share of the market in terms of volume with current demand being around 3.8 Mtpa.
“Geographically we’re in a great location”, Clemmey added.
“Currently the US imports 100% of its requirement of fluorspar. Having something on their home turf we see as a key position. And we see a lot of interest.”
At the moment, the Chinese dominate the market.
“We believe that fluorspar is in a high demand situation and that supplies are going to get reduced with high demand from China. The key markets in Europe and America are trying to secure supply outside of China.”
The next phase of drilling will target these higher grades of fluorspar to further increase the resource, Clemmey added.
“We don’t know the exact location of the source of the fluorspar at the moment”, he says, notwithstanding that he’s slowly zeroing in. “The last phase of drilling indicated that we are pretty close.”
Speaking to Proactive, he confirmed it was Tertiary's aims to take projects through to production.
To that end, he said MB had a low waste to ore strip ratio and therefore mining would be by standard open pit methods in the first instance.
"Given the depth extent encountered in the Phase 3 drilling programme and that the mineralisation is open at depth there is also potential to increase the mining life by adopting underground methods in the future," he said.
Tertiary shares added over 9% to 3p but earlier were 20% higher.