TIDMMTR
31 October 2018
Metal Tiger plc
("Metal Tiger" or the "Company")
Kalahari Metals Limited - Phase 1 Exploration & Investment
Update
Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed
investor in strategic natural resource opportunities, is pleased to
provide an update regarding Kalahari Metals Limited ("KML")
copper-silver exploration progress.
Highlights
-- KML 2018 Phase 1 Exploration Programme completed to plan and on
schedule.
-- Drilling at the Ngami Copper Project to be allowed to proceed under an
Environmental Management Plan (EMP) as agreed with the
Botswana
Department of Environmental Affairs. KML is progressing the
EMP
currently.
-- Results from the Phase-1 Aerial Electromagnetic (AEM) geophysics
survey and Layered Earth (LE) inversion modelling, for both the
Ngami
Copper Project (NCP) and Okavango Copper Project (OCP) licence
areas,
has generated numerous 'dome style' exploration targets
analogous to
the MOD Resources T3 Deposit.
-- Geophysics modelling has also identified over 340km of potentially
mineralised geological contact which will be prioritised for
higher-resolution follow-up work prior to drill testing.
-- As per the KML Investment Agreement (announced 6 June 2018) MTR have
elected to exercise the Option to take MTR's total shareholding
in KML
from 18% to 34% for a consideration of US$500,000.
-- Triprop Holdings (Pty) Limited ("Triprop") have confirmed to KML that
over half of the required US$600k Stage 1 Earn-In Expenditure
has now
been met. KML need to expend a further circa US$292k, through
funding
a planned Phase 2 Work Programme, in order to issue Exercise
Notice
for the subscription of 51% of the enlarged share capital of
Triprop.
Michael McNeilly, Chief Executive Officer of Metal Tiger plc,
commented:
"We are pleased to provide an update for the exciting KML
Project in Botswana. The planned Phase 1 work programme has been
completed as planned and ahead of schedule with the completion and
interpretation of the airborne geophysics survey work.
The state-of-the-art Layered Earth Inversion modelling technique
employed on the Phase-1 Airborne Electromagnetic survey data has
greatly added to our understanding of the buried geology of the
licence areas. This innovative 3D modelling method has enabled the
visualisation of potentially mineralised hidden structures and
geological contacts, accelerating the exploration process and fast
tracking the identification of areas for further follow-up as
potential drill targets.
The completion of the Phase 1 work programme coincides with KML
meeting the first half of the Stage-1 Earn-in agreement with
Triprop and MTR electing to exercise our option to increase our
holding in KML to 34%. Details of the follow-on Phase 2 work
programme are currently being reviewed, details of which we expect
to communicate shortly."
We recommend that readers also refer to the below linked version
of this news release which includes informative images showing the
geophysical interpretations:
https://www.metaltigerplc.com/kalahari-metals-limited-airborne-geophysics-interpretation-drill-permission-update
Further Details:
Triprop Earn-In Progress
-- The terms of the KML binding earn-in agreement with Triprop (the
"Earn-in") were set out in full by the MTR announcement of 6
June
2018. Triprop hold 5 granted exploration licences arranged as
two
separate blocks of ground with a combined total area of 2,067
km2.
-- KML have the right to earn-in to up to 80% of Triprop through
completion of the Stage 1 and Stage 2 earn-in, followed by a
right to
purchase the remaining 20% of Triprop at an independent
valuation.
-- Under the Stage 1 Earn-in KML are to incur US$600,000 in respect of
agreed work programmes and budgets, within a 1-year period, in
return
for the issue of new ordinary shares totalling 51% of the
Triprop
enlarged share capital.
-- As of 19October 2018, KML had expended a total of
US$307,842.33 of the US$600,000 Stage 1 Earn-in.
KML Investment Status
-- The terms of the KML Investment Agreement with MTR were set out in
detail in the MTR announcement of 6 June 2018.
-- MTR have the right to acquire up to 50% of KML for a total
consideration of US$1.6 million split into three Options. Option
one
(completion option) was satisfied upon agreement signing
resulting in
MTR holding 18% of KML.
-- MTR have now elected to exercise the second option to bring the total
holding in KML to 34% for a total consideration of US$500,000
cash.
This cash will contribute towards the funding of a planned Phase
2
Work Programme.
Environmental Permitting
-- Botswana Department of Environmental Affairs have agreed that drilling
can proceed on the Ngami Copper Project under an EMP. The
timeframe to
complete the EMP process is normally 4 months.
-- The Okavango Copper Project will require a more detailed Environmental
Impact Assessment (EIA) to be produced prior to permission to
drill
being granted. The timeframe to complete the more detailed
EIA
process, through to grant, is normally 9 months.
-- The reduced timeframe for an EMP application should place KML in a
position to start to test drill new copper targets at the end of
Q1
2019.
Phase-1 Airborne Geophysics Survey Details
-- Geophysics programme was designed to constrain structural models and
identify potential anticlinal dome settings for T3 Deposit
style
copper-silver mineralisation.
-- The AEM survey was flown at two resolutions;
Regional survey, 4km-line spacing, designed to map Kalahari
cover
thickness, saline water effects and key conductive marker units
in
the Lower D'Kar Formation directly above the target
mineralised
redox boundary; and
Detailed survey, 400m spacing, over an interpreted fold hinge
zone
derived from the magnetic data interpretation.
-- The objective of the regional scale survey was to prioritise areas for
detailed follow-up in a second phase of AEM survey, these can
be
delineated with confidence using the regional data as a
guide.
Geophysics Survey Preliminary Interpretation
-- The high-resolution magnetic survey data (75m spacing) for the OCP has
provided a detailed map of Kalahari Copper Belt stratigraphy
under
Kalahari cover and between NNW trending Karoo dyke swarms.
-- Evidence of cross-cutting structures, particularly perpendicular
demagnetised structures, are clearly apparent in magnetic
derivative
products, potentially highlighting more prospective areas along
the
potentially mineralised Ngwako-D'Kar Formation redox
contact.
-- Layered Earth (LE) Inversion modelling has proved pivotal in the
interpretation of the AEM survey data:
LE models appear to map out key conductive marker units in
the
Lower D'Kar Formation directly above the target mineralised
redox
boundary;
At the OCP it has identified conductive marker units which
appear
to correlate with the target redox contact and a compelling
fold
structure in the eastern part of the survey area which provides
a
priority "dome target"; and
At the NPC modelling of the 2km spaced AEM data has
effectively
mapped several anticlinal structures expanding on targets
identified in a re-interpretation of previously obtained
high-resolution magnetic data.
-- Priority follow-up target areas have been interpreted from areas where
potentially mineralised contact appears within shallow
anticlinal
hinge zones (analogous setting to the T3 Deposit).
Project Background
KML holds interests in seven highly prospective exploration
licences covering 4,063km2 in the Kalahari Copper Belt, consisting
of two 100% owned exploration licences and five exploration
licences subject to a binding earn-in agreement with Triprop
Holdings (Pty) Limited ("Triprop"). KML have also entered into an
exclusivity period with Resource Exploration and Development
Limited ("RED") to undertake due diligence with a view to acquiring
an additional 5 licenses, totalling 4,661 km2, in Botswana
(announced 20 August 2018). Under an investment agreement MTR have
the right to acquire up to 50% of KML (announced 6 June 2018)
giving MTR further exposure to largely unexplored ground, adjacent
to significant recent discoveries in the highly prospective
Kalahari Copper Belt.
Competent Person's Statement
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 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 Executive Officer) Tel: +44 (0)20 7099 0738
Mark Potter (Chief Investment Officer) Tel: +44 (0)20 7099 0738
Stephen Allen or RFC Ambrian Ltd Tel +44 (0)20 3440 6800
Bhavesh Patel
(Nominated Adviser)
Charlie Cryer RFC Ambrian Ltd Tel +44 (0)20 3440 6800
(Joint Broker)
Nick Emerson SI Capital (Joint Broker) Tel: +44 (0)1483 413 500
Gordon Poole
James Crothers Camarco Tel: +44 (0)20 3757 4980
Monique Perks (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:
https://www.businesswire.com/news/home/20181031005283/en/
This information is provided by Business Wire
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