Shares in Tertiary Minerals (LON:TYM) rose sharply on Thursday after the company revealed historic drill results that point to its MB fluorspar project in Nevada being a major deposit with “world class potential”.
The London-listed mining exploration group announced the acquisition of MB in September.
At the time it only had historic results from around 84 mainly shallow holes drilled on the periphery of the deposit.
In doing its due diligence it has unearthed data from 24 deeper drill holes located throughout the mineralisation, “which now confirm it to be a major fluorspar deposit”.
The best intersections included 50 metres at 12.3% calcium fluoride, starting at 1.5 metres from surface; 75 metres at 10.9% and 125 metres at 11.6%.
In short, the results reveal “widespread thick and flat-lying zones of open-pit mineable fluorspar mineralisation not bottomed by the majority of vertical drill holes”, Tertiary said.
Fluospar has many uses is the chemicals industry and heavy engineering. It is the base material for coolants used in fridges, and is an ingredient in certain lubricants and flux in iron and steel casting.
Broker Seymour Pierce repeated its ‘buy’ advice and 30 pence a share price target following today’s news.
Analyst Asa Bridle said: “As in Europe, where Tertiary has its other operations, the US government considers fluorspar to be a strategic mineral and there is a large domestic market, but currently no significant US production.
“Put simply, Tertiary believes the MB deposit could rank amongst the largest fluorspar deposits in the world.
“Hence we look forward to the company defining the opportunity in greater detail while also pushing on with its more advanced assets in Scandinavia.”
At 10.45am, the stock was changing hands for 5.8 pence a share for a rise of 1.3 pence, or 29%. Earlier in the session it was up 49%.