TIDMMTR
Metal Tiger Plc
3 October 2017
Metal Tiger Plc
("Metal Tiger" or the "Company")
Botswana Copper/Silver Project - T3 Deposit - Potential Major
Strike Extension
Metal Tiger plc (LON:MTR), the London Stock Exchange AIM listed
investor in strategic natural resource opportunities, is pleased to
provide an update regarding the Company's Joint Venture ("JV")
project with partners MOD Resources (ASX:MOD) in the Kalahari
Copper Belt in Botswana (70% MOD Resources/30% Metal Tiger). Metal
Tiger also holds 95,543,934 MOD shares, equivalent to 5.049% of
MOD's issued share capital and 1,541,667 MOD warrants at an
exercise price of 6 cents (Australian). Activities in Botswana are
conducted under the JV's local operating company Tshukudu Metals
Botswana (Pty) Ltd. ("Tshukudu").
Highlights:
-- Drilling has intersected new zones of visible copper mineralisation
300m west and northeast of planned pit.
-- Copper mineralisation now extends over a strike length of 1.5km and
remains open.
-- Seven drill rigs now operating at T3, diamond core drilling
progressing well.
-- Prefeasibility Study now modelling a 2.5Mtpa processing rate, up 25%
compared to the Scoping Study.
-- Excellent metallurgical testwork results received.
Michael McNeilly Chief Executive Officer of Metal Tiger
commented:
"We are delighted to provide an update on activities in
Botswana.Since drilling recommenced in August, the Tshukudu team
have completed over 6,100 metres of drilling with a total of 19
diamond holes completed or in progress.
Very excitingly, 50m wide zones of visible copper mineralisation
have been logged in core from four holes drilled along strike from
the current T3 Mineral Resource.We eagerly await the assay results
from these holes, and other holes, which point to the potential for
major strike and down-dip extensions to the current Resource.
Work on the Prefeasibility Study is also progressing well and
remains on schedule with the decision taken to increase the
modelled ore processing rate to a level 25% above that used in the
Scoping Study to reflect the increase in the Mineral Resource, the
expected mineable inventory increase and the strong copper price.
We look forward to assessing the positive effect these factors have
on the Project's baseline economics."
For images that may assist readers in the visualisation of the
T3 Project area and drill collars mentioned in this announcement,
we would refer to the announcement released today by MOD Resources.
This announcement can be viewed through the following link:
http://search.asx.com.au/s/search.html?query=mod&collection=asx-meta&profile=web
Shareholders should note that the timing of MOD announcements
are outside the control of MTR, however, MTR does its utmost to
announce the drill results and important updates as soon as
practicable after MOD makes its announcement to the ASX. MTR are
only made aware of drill results and important updates immediately
prior to the MOD release.
T3 Drilling Programme Update
The current phase of drilling at the T3 Copper/Silver Deposit
commenced on 7th August 2017, with approval granted for the
recommencement of both diamond core (DC) and reverse circulation
(RC) drilling at the T3 Project and its vicinity, through to
December 2018.
-- Visible copper mineralisation consisting multiple intervals of
disseminated and vein hosted sulphides have been logged within
wide
zones estimated to be greater than 50m true thickness, in
diamond
drill holes, MO-G-74D, MO-G-76D, MO-G-79D and MO-G-80D, located
along
strike at the eastern and western limits of drilling at T3.
-- New zones of mineralisation are well outside the current Mineral
Resource area. Assay results are required to confirm the
copper
intervals, though geological logging has determined that
mineralisation is dominated by finely disseminated chalcocite
with
localised veins showing chalcocite and bornite. The
mineralisation is
hosted by both sandstone and mudstone.
-- New zones are located down-dip from narrow intersections of copper and
lead/zinc mineralisation intersected at shallow depth by
previous
drilling. For example, the wide intersection of visible
sulphides in
MO-G-80D, located 300m west of the planned open pit occurs circa
200m
down dip from a 1m intersection of chalcopyrite intersected in
water
bore hole MO-G-WB06.
-- Copper mineralisation now extends over an open strike length of over
1.5km.
-- Several other holes in the current programme have intersected
encouraging vein hosted mineralisation down-dip from the planed
T3
open-pit. Assay results from these holes will be announced soon
and
once infill drilling is complete drilling will focus on this
area.
-- Drilling has also targeted the Induced Polarisation (IP) geophysics
anomaly located to the north of T3. Hole MO-3R-08D has been
completed
to a depth of 643.9m intersecting minor vein hosted
chalcopyrite
between 590m and 595m down hole, but not determining the source
of the
IP anomaly. The possibility that the target sequence may be
off-set,
to the north of MO-3R-08D, by a major structural feature
interpreted
from the drill core, is planned to be investigated by future
drilling.
This major structure may also be related to the 10km long
Electromagnetic (EM) geophysics anomaly (T3 Deposit EM anomaly)
which
extends to the east and west of T3 (see announcement of 21 July
2017).
-- Currently, there are 7 drill rigs now operating at T3; two DC rigs
testing east and west strike extensions to T3 Deposit; three DC
rigs
infill drilling the current Resource; and two RC rigs drilling
diamond
hole pre-collars and drilling water boreholes to test the
potential
for a sustainable source of plant processing water.
-- Since drilling recommenced, a total of 11 new DC drill holes have been
completed (totalling 4,405m), 4 depth extensions (totalling
1,695m)
have been drilled to previous holes and 4 new DC holes are in
progress.
T3 Prefeasibility Study (PFS) Progress
The T3 open-pit prefeasibility works are progressing to schedule
with the completion of the overall PFS Study expected in December
2017. Updates on the specific study elements are outlined
below.
Mining & Process Engineering Studies
-- Annual ore production targets have been revised to an ore processing
rate of 2.5 Mtpa, a 25% increase on the Scoping Study
production
target.
-- Upgrade is in response to the growth in the T3 Mineral Resource
Estimate (announced 24 August 2017), the expected increase in
the
mineable inventory and the strength in the copper price since
the
Scoping Study was announced.
-- Planned process plant design will allow for a possible future
expansion of up to 4.0 Mtpa. This expansion capacity gives
optionality
if there are further upgrades to the T3 Resource and
possible
supplementary ore supply from nearby deposits.
Metallurgical Studies
-- Results of locked cycle testwork on composite samples for the three
main T3 ore domains (Chalcocite, Bornite and Chalcopyrite) have
been
received (Table 1).
Table 1: Locked Cycle testwork results from composite samples of
three T3 ore types.
Domain Copper Silver Mass Recovery %
Recovery % Grade % Recovery % Grade g/t
Chalcocite 93.43 48.59 88.97 850 2.31
Bornite 96.25 43.57 92.16 668 3.15
Chalcopyrite 93.34 33.15 82.56 199 3.15
-- Locked cycle testwork is more indicative of a production scale
metallurgical response relative to the batch testwork which was
used
in the Scoping Study. Ore intervals from a total of 22 drill
holes
were used to prepare representative composites for this PFS
testwork
programme.
-- Copper recoveries are excellent, ranging from 93.3% to 96.3% into
concentrate grades containing 33.1% to 48.6% Cu.
-- Silver recoveries and concentrate grades were also very good notably
in chalcocite and bornite ores which host most of the
high-grade
silver mineralisation. Penalty elements were at acceptable
levels e.g.
arsenic ranged from 254ppm to 1,905ppm.
Hydrological Studies
-- A series of large bore vertical wells are being drilled across the T3
site to allow comprehensive testing and modelling of the
groundwater
quality and quantity.
-- These hydrological test wells, and associated modelling, will be used
to both develop a water supply solution for the project and
refine the
open pit design currently underway.
-- All six water bore test holes drilled so far have struck water and
results are being evaluated.
-- Applications for water extraction will be prepared once sustainable
yields are calculated and T3 water requirements are
finalised.
Environmental Approvals & Stakeholder Engagement
-- Baseline flora, fauna and biodiversity studies are ongoing during the
dry season and are expected to be completed in the current
quarter.
-- Preparation is underway to commence the formal Environmental Impact
Assessment (EIA) process soon after completion of the
Pre-feasibility
Study.
-- Exploration access agreement for the farm associated with the T3
Project has been extended to 30 April 2018.
-- Exploration access agreements have been executed for farms associated
with the AEM geophysics targets surrounding T3. These farm
access
agreements are a precursor to gaining approval from the
Department of
Environmental Affairs (DEA) for drilling other high priority
targets
along the T3 Dome.
-- Tshukudu is developing stakeholder engagement policies and commencing
baseline social studies to enable consistent and fair treatment
of all
stakeholders associated with exploration and development
activities in
Botswana.
Background
The T3 Project is located on the Kalahari Copper Belt in
northern Botswana and is part of the MOD/MTR joint venture Botswana
Copper/Silver Project. T3 is located within the central part of the
T3 Dome (approximately 1000km2), which is the focus of rapidly
increasing exploration activity undertaken by Tshukudu. Two
significant resources have been discovered to date within the T3
Dome: T1 (Mahumo deposit 100% MOD) and T3 (70% MOD / 30% MTR).
The T3 deposit was discovered in March 2016 when a reverse
circulation ("RC") drill hole intersected 52m @ 2.0% Cu and 32g/t
Ag from shallow depth. The maiden T3 JORC (2012) compliant Mineral
Resource was announced on 26 September 2016 with the first Resource
upgrade announced on 24 August 2017. The results of a Scoping Study
for an open pit mine at T3 with a 2Mtpa processing plant, an
indicative mine life of 10 years and an average production rate of
21,800tpa of copper and 665,000oz pa of silver was released on 6
December 2016. Work on a Pre-Feasibility Study (PFS) commenced in
January 2017 and additional deeper copper mineralisation was
discovered below the T3 Resource in February 2017.
The T3 Prospect geological data and exploration results have
been reviewed and approved by Jacques Janse van Rensburg, BSc
(Hons), Business Development Manager and Competent Person for MOD
Resources Ltd. Mineral Resource estimation and classification of
the T3 Copper/Silver Project was conducted and approved by Mr A.I.
Pretorius, MSc. Pri.Sci.Nat. an independent consultant to MOD
Resources Ltd.
The technical information contained in this disclosure has been
read and approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM, FGS), who
is a qualified geologist who acts as the Competent Person under the
AIM Rules - Note for Mining and Oil & Gas Companies.Mr O'Reilly
has visited the T3 site and reviewed MOD's drilling and sampling
protocols and procedures. Mr O'Reilly is a Principal consultant
working for Mining Analyst Consulting Ltd which has been retained
by Metal Tiger PLC to provide technical support.
For further information on the Company, visit:
www.metaltigerplc.com:
Michael McNeilly (Chief Tel: +44(0)20 7099 0738
Executive Officer)
Keith Springall (Finance Tel: +44 (0)20 7099 0738
Director
& Company Secretary)
Stephen Allen or RFC Ambrian Ltd Tel: +44 (0) 3440 6800
Bhavesh Patel (Nominated Adviser)
Jonathan Williams RFC Ambrian Ltd Tel: +44 (0)20 3440 6800
(Joint Broker)
Nick Emerson SI Capital Tel: +44 (0)1483 413 500
(Joint Broker)
Andrew Monk VSA Capital Limited Tel: +44 (0)20 3005 5000
Andrew Raca (Joint Broker)
Gordon Poole Camarco Tel: +44 (0)20 3757 4980
James Crothers (Financial PR)
Notes to Editors:
Metal Tiger plc is listed on the London Stock Exchange AIM
Market ("AIM") with the trading code MTR and invests in high
potential mineral projects with a precious and strategic metals
focus.
The Company's target is to deliver a very high return for
shareholders by investing in significantly undervalued and/or high
potential opportunities in the mineral exploration and development
sector timed to coincide, where possible, with a cyclical recovery
in the exploration and mining markets. The Company's key strategic
objective is to ensure the distribution to shareholders of major
returns achieved from disposals.
Metal Tiger's Metal Projects Division is focused on the
development of its key project interests in Botswana, Spain and
Thailand. In Botswana, Metal Tiger has a growing interest in the
large and highly prospective Kalahari copper/silver belt. In Spain,
the Company has tungsten and gold interests in the
highly-mineralised Extremadura region. In Thailand, Metal Tiger has
interests in two potentially near-production stage silver/lead/zinc
mines as well as licences, applications and critical historical
data covering antimony, copper, gold, silver, lead and zinc
opportunities.
The Company has access to a diverse pipeline of new
opportunities focused on the natural resource sector including
physical resource projects, new natural resource centred
technologies and resource sector related fintech opportunities.
Pipeline projects deemed commercially viable may be undertaken by
Metal Tiger or by an AIM or NEX Exchange (formerly ISDX) partner
with whom the Company is engaged.
View source version on businesswire.com:
http://www.businesswire.com/news/home/20171002006653/en/
This information is provided by Business Wire
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