TIDMMTR
RNS Number : 6331G
Metal Tiger PLC
23 November 2015
METAL TIGER PLC
23 November 2015
Metal Tiger plc
("Metal Tiger" or the "Company")
Gold Mineralised Structure - Spain
Metal Tiger (LON: MTR), the natural resources investing company
is pleased to provide a update on the drilling progress on the
Logrosán Gold and Tungsten Joint Venture project in Extremadura,
Spain which has now identified a mineralised gold structure
achieving the initial objective of the drill campaign. With the
positive results outlined below we are now focussing drilling to
pursue and extend the identified mineralisation area.
Highlights:
-- Drilling confirms initial hard-rock hosted gold intersections at Zorita North Target;
-- Rotary Air Blast (RAB) drilling and sampling programme
continues with current focus on Gold in the Zorita Exploration
Licence;
-- First 325 gold assay results processed by ALS Laboratories,
these consist selected samples from 80 drill holes on four drill
profiles;
-- Gold mineralised NE-SW trending structure intersected in all
three North Target drill profiles;
-- Gold trend defines a corridor up to 185m long by 45m wide,
this is currently open along strike in both directions;
-- Best intersection to date:
o Hole MG059: 4m @ 2.0 g/t Au from 7.6m to 11.6m,
including 2m @ 3.9g/t Au from 9.6m to 11.6m;
-- To date 154 shallow drill holes completed, 2,521m drilled, on
Zorita Licence gold targets, and;
-- A total 237 drill holes (4,089m) on Logrosan Project
including both the tungsten and gold targets. 82% of 5,000m drill
programme completed to planned schedule.
Cameron Parry CEO of Metal Tiger said: "We are pleased to
announce that the RAB drilling on the Zorita Licence has
intersected initial hard-rock gold mineralisation in the North
Target area, and that the assay results on 3 drill profiles have
defined a 185m long NE-SW trending mineralised trend, which is
currently open at both ends.
Given the nature of this initial drilling programme, we are
delighted to have identified gold mineralisation at this early
stage, achieving our initial objective and enabling drilling to
build on the mineralisation already identified. This ratifies the
professionalism of our Joint Venture partners in their historic
work which provided the drill targets leading to this early
positive drilling outcome. We are also pleased to confirm that the
drilling and sampling is progressing well and to schedule.
As the drilling strategy is to sequentially drill profiles
across each of the gold two broad target areas as defined by
previous surface sampling and geophysics, we look forward to the
prospect of building out the total strike of the gold trend as the
programme continues and will provide further updates as appropriate
going forward."
Logrosán - Summary of Progress to Date:
The Rotary Air Blast (RAB) drilling programme at the Logrosán
Project's Zorita Licence, North and South targets, is currently
progressing well. Since recommencing field work on 10(th)
September, drilling is conducted mainly on a double shift basis,
with up to 4 holes completed per 24 hour period. The gold focused
work has collected a total of 1,153 drill samples from 154 drill
holes to date.
A total of 325 gold assay results, derived from selected samples
submitted from the first 80 holes on North Target, have been
received from ALS Minerals Laboratory (ALS). Gold levels away from
the perceived gold trend are generally below 0.1g/t, but
intersections in 6 holes on 3 profiles define a trend where
intersections grade up to 3.9g/t Au, see Table 1 below.
Table 1: Gold Drill Hole Intersections on Mineralised Trend,
Logrosán North Target
Hole Drilling From To Intersection Au g/t
ID Profile (m) (m) Width
# * (m)
------- --------- ------ ------ ------------- -------
MG024 2 11.68 13.68 2.00 0.1
------- --------- ------ ------ ------------- -------
MG025 2 7.64 9.64 2.00 0.3
------- --------- ------ ------ ------------- -------
MG050 3 17.58 19.58 2.00 0.3
------- --------- ------ ------ ------------- -------
MG053 3 13.59 15.59 2.00 1.2
------- --------- ------ ------ ------------- -------
MG058 4 11.61 13.61 2.00 0.1
------- --------- ------ ------ ------------- -------
MG059 4 7.59 9.59 2.00 0.1
------- --------- ------ ------ ------------- -------
9.59 11.59 2.00 3.9
------- --------- ------ ------ ------------- -------
* Note that drill intersection widths do not necessarily
represent the true thickness of the mineralisation as insufficient
drilling has been completed to calculate the actual dips of the
veins/structures.
Drill samples are typically collected over two metre intervals
and are riffle split to produce sample for analysis, a duplicate
and a sieved course fraction. A sub-sample of material is pan
concentrated for visual inspection of sulphide and gold grain
content. Where visible sulphides and/or gold is encountered samples
are batch analysed by ALS in Seville, Spain (the accredited
external assay).
Upon receipt at ALS, samples are weighed, crushed, split and
pulverised to 85% < 75microns and then analysed by Fire Assay
with Atomic Adsorption finish (Au-AA23) package. Reporting is for
gold in parts per million (ppm), with a lower detection limit of
0.005ppm Au. ALS conduct internal quality control analysis.
Background to Logrosán Drilling Programme:
The planned programme consists up to 5,000m of inclined rotary
air blast (RAB) drilling designed to test surface geochemical and
geophysical anomalies at depth. Drilling is split between two
seasons, 24 April to 30 June and 10 September to December, with a
break over the hottest part of the year. The drill rig which is
owned by the Joint Venture company is a compact, track mounted
Dando Terrier drill fitted with a mast dump for inclined drilling
up to 45 degrees from vertical. The method of drilling and sampling
is deemed appropriate for the stage and goals of the exploration
programme. The drilling programme, the sampling procedures,
protocols and results are agreed and are reviewed in conjunction
with Metal Tiger's qualified geologist who visited site again at
the commencement of the gold target drilling.
Background to Joint Venture:
Metal Tiger entered into a Joint Venture with Logrosán Minerals
Ltd (a Special Purpose Vehicle "SPV" company incorporated in the
UK) on 13 March 2015. Logrosán Minerals Limited is the operating
company for the Logrosán Exploration Project. Over the prior 18
months, Metal Tiger's joint venture partner in Logrosán Minerals
Ltd, Mineral Exploration Network (Finland) Ltd, had carried out
more than 40,000 soil samples, hundreds of pan-concentrate samples,
covered thousands of linear kilometres with ground magnetic survey
and assessed electro-magnetic tomography. The presence of Tungsten
mineralisation had been confirmed by soil sampling, outcrop
sampling, trenching and historical drill holes. Gold mineralisation
has been confirmed by pan-concentrate and findings to date
delineate three significant anomalies, being one square kilometre
each.
Metal Tiger is to fund up to EUR500,000 in exploration work over
the balance of 2015 in line with an agreed exploration programme
that includes up to 5,000 metres of drilling.
Metal Tiger is to be issued with new ordinary shares in Logrosán
Minerals Ltd in line with funds injected. Should Metal Tiger
provide the total EUR500,000 2015 exploration programme funding it
will hold 50% of the shares on issue in Logrosán Minerals Ltd. To
date Metal Tiger has expended EUR300,000 earning into a 30% holding
of Logrosán Minerals Ltd. The balancing holding in the SPV is held
by Mineral Exploration Network (Finland) Ltd.
Each monthly payment made by Metal Tiger provides the exclusive
right to make payment of the other monthly instalments, however it
is at Metal Tiger's discretion as to whether it continues to be the
sole funder of this amount or brings in co-investors under the same
terms as Metal Tiger's equity investment.
Should Metal Tiger be the sole investor and make the total
EUR500,000 in payments for equity in the SPV, then Metal Tiger will
acquire a total of 50% of the shares of the SPV, at which point it
is up to the board and shareholders of the SPV as to how further
stages are funded.
The SPV holds 2 granted licences and 1 licence application for a
total area of 238 square kilometres in Logrosán, a municipality of
the province of Cáceres in Extremadura, Spain. The exploration
licence ("Antonio Caño", 10314-00) covers an area of 88.85 square
kilometres and was granted on 2 December 2013 for a period of three
years. The Zorita Exploration Licence covers an area of 105.96 km2,
it is valid for 3 years starting 18 June 2015 and is renewable for
a total of 9 years. The "San Cristóbal" licence application covers
a further area of 148.98 square kilometres adjacent to the "Antonio
Caño" licence.
Mr Nick O'Reilly (MSc, DIC, MAusIMM, FGS), is a qualified
geologist who meets the criteria of a qualified person under the
AIM Rules - Note for Mining and Oil & Gas Companies, he has
visited the Project Area, overseen the drilling and sampling and
reviewed the technical information contained within this
announcement. Mr O'Reilly is a consultant working for Mining
Analyst Consulting Ltd which has been retained by Metal Tiger PLC
to review the work undertaken on the Logrosán Exploration
Project.
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