Terramin Australia Limited (TZN) – A New High Grade Zinc Stock

• The IPO Offer : Terramin Australia Ltd (TZN) is offering a subscription of 25m shares at 20c to raise $5m (minimum subscription $5m, underwritten by Taylor Collison Limited) to complete feasibility studies on the relatively high grade Angas Zinc Project, re-interpret and advance the Menninnie Dam Zinc Project, and explore by JVs its pipeline of gold-copper projects, all in South Australia.
• Some $1.1m of the raising enables TZN to complete its 1997 farm-in agreement to acquire a 60% interest in the Angas Zinc Project from the original JV partner Aberfoyle (since taken over by Western Metals, which is now in receivership). The agreement was extended for 2m TZN options in June 2003 to include Menninnie Dam (South Australia’s potentially largest lead-zinc deposit), and TZN has a call option over the remaining 40% in both projects.
• It is possible to identify some continuity of a high grade mineralised zinc zone over 80m of strike at Angas (in diamond drillhole nos 29, 36 and 37, with 14m @ 21%Zn from 192m in DD29, 6m @ 16%Zn from 95m in DD36, and 12m @14.6%Zn from 45m downhole from surface in DD37). Copper mineralisation is minor at less than 1%, although lead and silver values can be material. In TZN’s opinion, the Sedex total (Fe+Pb+Zn) percentage content should be used to delineate the lode.
• TZN think that the Menninnie Dam Zinc orebody has been misinterpreted and does not strike north-south, but is instead fault controlled east-west, and verification using the MIMDAS system is planned. If it is based east-west then most of the drilling of ~10 years ago was targeting an orebody in the wrong direction.
• Although Terramin’s main focus is on high grade zinc projects and bringing them into production, it does also have a number of copper-gold projects of which the most advanced is the Gina Block part of the Ingomar Project (about 100km west of MNR’s Prominent Hill) where gold anomalies apparently coincide with folds and fault structures, and a major regional anticlinal fold has been interpreted.