Tertiary Minerals : Silver find grows at Zambian site

Tertiary Minerals PLC (AIM:TYM) announced a significant extension of its silver discovery at the Mushima North project in Zambia, with recent drilling confirming mineralization 225 meters further north and yielding the highest grades to date, including 223 g/t silver and 1.01% copper. A notable intersection of 73 meters at 32 g/t silver from just 11 meters depth underscores the project's potential for a large, low-cost open-pit operation, a development Managing Director Richard Belcher called "very encouraging" for Target A1 as a primary silver target. This expansion significantly enhances the project's resource potential and economic viability.

Analysis

Tertiary Minerals PLC (AIM:TYM) has materially advanced its Mushima North project in Zambia with new drill results that confirm a significant extension of silver mineralization. The discovery at Target A1 now extends at least 225 meters further north, with drilling intersecting a thick, 73-meter zone of mineralization averaging 32 g/t silver starting just 11 meters below the surface. This result is particularly compelling as it includes a higher-grade 11-meter interval at 94 g/t silver and is commercially significant, with grades above 30 g/t considered viable for large-scale, low-cost open-pit silver mining. While the project is viewed as a primary silver target, the presence of copper (peaking at 1.01%) and zinc supports a polymetallic model that could provide valuable by-product credits. The project's potential is further underscored by its shallow mineralization, its proximity to a former high-grade mine, and a technical cooperation agreement with major operator First Quantum Minerals. However, the asset's economic viability remains contingent on upcoming results, including assays from four more drill holes and crucial metallurgical studies to determine metal recovery potential.

Key Decisions for Investors

• The strong drill results, particularly the thick, shallow intersections with grades suitable for open-pit mining, represent a significant de-risking event that could justify a re-rating of the Mushima North asset.
• Investors should closely monitor near-term catalysts, as the stock's performance will be highly sensitive to the pending results from four additional drill holes and the forthcoming metallurgical test work, which is critical for confirming the project's economic viability.
• While the polymetallic nature is a positive, the primary value driver is silver; therefore, position sizing should reflect a high-risk, high-reward exposure to an early-stage exploration play contingent on further successful drilling and favorable processing outcomes.