TIDMMTR

Metal Tiger plc

("Metal Tiger" or the "Company")

Sandfire Resources Increased A4 Mineral Resource Estimate

Metal Tiger plc (AIM: MTR, ASX: MTR), the AIM and ASX listed investor in natural resource opportunities, is pleased to note Sandfire's announcement noting a 34% increase in contained copper at satellite A4 Copper-Silver Deposit at Motheo.

Metal Tiger is currently interested in 6,143,357 Sandfire shares representing approximately 3.4% of Sandfire's issued share capital. As announced on 31 July 2020, 2,842,667 of the Sandfire shares held by the Company are subject to an equity derivative financing arrangement with a global investment bank. Metal Tiger has a 2% uncapped net smelter royalty over circa 8,000km(2) of Sandfire's licence holdings in the Kalahari Copper Belt including PL190/2008 (excluding the Motheo Copper Mine project area), which hosts the A4 deposit.

Highlights:

   -- Updated JORC 2012 Indicated and Inferred Mineral Resource Estimate (MRE) 
      completed for the A4 Copper-Silver Deposit, located 8km west of the 
      permitted Motheo Copper Mine in Botswana: 
   -- Indicated and Inferred Mineral Resource: 9.8Mt at 1.4% Cu and 21g/t Ag 
      for 134,000t of contained copper and 6.6Moz of contained silver (using a 
      0.5% Cu cut-off). 
   -- Updated MRE delivers a 34 per cent increase in total contained copper 
      compared with the maiden Inferred MRE announced in December 2020. 
   -- 93 per cent of contained copper now reported in the higher confidence 
      Indicated Mineral Resource category and available for inclusion in Ore 
      Reserves: 
   -- Indicated Mineral Resource: 8.9Mt at 1.4% Cu and 22g/t Ag for 124,000t of 
      contained copper and 6.2Moz of contained silver. 
   -- A4 Deposit continuing to emerge as a key potential source of satellite 
      ore feed for the Motheo Copper Mine, where full-scale construction and 
      development is now underway following the award of the Mining Licence on 
      7 July 2021. 
   -- Feasibility Study program continuing and maiden Ore Reserve on track to 
      be completed during the December 2021 Quarter as the foundation for a 
      Feasibility Study due in the March 2022 Quarter. This will provide a 
      clear development pathway for the integration of A4 into the proposed 
      5.2Mtpa Motheo Production Hub.

Key Excerpts from the body of the Sandfire announcement:

   -- Sandfire has commenced a substantial diamond drilling program to test a 
      number of targets along the A4 Dome. Drilling is focused on targets with 
      potential for high-grade vein hosted mineralisation in the upper part of 
      the Dome and the potential for extensive mineralisation associated with 
      the Ngwako Pan Formation (NPF) contact below the Dome. 
 
   -- Vein-hosted mineralisation within the A4 Mineral Resource has delivered 
      some outstanding intersections including a standout 35.7m at 7.1% Cu and 
      116g/t Ag from 128.5m down-hole, which includes 12.4m at 13.3% Cu and 
      232.8g/t Ag, from 131.6m down-hole depth in hole MO-A4-138D, announced on 
      1 December 2020. 
 
   -- NPD contact related mineralisation is more typical of sediment-hosted 
      copper deposits globally and has the potential to extend over wide areas 
      of the Kalahari Copper Belt. 
 
   -- The NPF contact hosts most of the major deposits in the eastern part of 
      the belt including the 60-65ktpa Zone 5 underground mine, which is 
      currently being commissioned. On 1 July 2021, the Khoemacau Copper Mining 
      company announced first concentrate production from the Zone 5 Mine which 
      Khoemacau reported is being ramped up to full production through H2 2021. 
 
   -- Previous, widely spaced drilling of the NPF contact along a 1.6km section 
      of the interpreted 9km long A4 Dome has resulted in a number of 
      significant intersections of disseminated and high-grade contact 
      copper-silver mineralisation, announced by MOD Resources Ltd during 2018. 
      These intersections include: 27.0m at 1.1% Cu and 20g/t Ag from 394m 
      down-hole, including 9m at 2.1% Cu and 39g/t Ag from 412m down-hole in 
      hole MO-A4-010D, and: 31.5m at 1% Cu and 10g/t Ag from 538m down-hole, 
      including 2.8m at 4.9% Cu and 54g/t Ag from 566.7m down-hole in 
      MO-A4-020D. These results were announced by MOD Resources Ltd on 20 
      December 2018. 
 
   -- In addition to targeting high-grade vein systems, most holes in the 
      current program will be extended to intersect the NPF contact. The 
      objective is to scope out the extend of NPF contact mineralisation below 
      the A4 Dome and identify areas with higher copper-silver grades to focus 
      future drilling. 
 
   -- Drilling is also planned to commence at other high priority targets 
      within 30km of the Motheo Copper Mine during the September 2021 Quarter. 
      Targets include the large A1 Dome located 25km along strike from A4 and 
      the T1 and T2 East prospects located 10km north of A1. 
 
   -- Given its location just 8km from the planned processing plant and 
      infrastructure at Motheo, the A4 Deposit has potential to become an 
      important source of satellite ore for the Motheo Copper Mine to support 
      Sandfire's plans to increase production from the Base Case 3.2Mtpa 
      production rate to 5.2Mtpa (See ASX Announcement 1 December 2020: 
      "Sandfire approves development of new long-life copper mine in 
      Botswana"). 
 
   -- The higher confidence Indicated MRE at A4 is available for conversion to 
      Ore Reserves, which will enable Sandfire to complete feasibility studies 
      to support the proposed 5.2Mtpa Expansion Case for the Motheo Copper 
      Mine. A maiden Ore Reserve is on track to be reported in the December 
      2021 Quarter as the foundation for a Feasibility Study targeted for 
      completion in the March 2022 Quarter. 
 
   -- A4 is the first deposit to be delineated outside of the substantial T3 
      Open Pit Deposit within the highly prospective 1,000km2 Motheo Expansion 
      Project area. 
 
   -- The Motheo Expansion Project is the first area of the Kalahari Copper 
      Belt to receive systematic and focused exploration within Sandfire's 
      extensive licence holdings in the Kalahari Copper Belt. 
 
   -- Given its proximity to the processing plant and infrastructure being 
      constructed at T3, the A4 Deposit has the potential to become an 
      important source of high-grade ore for the Motheo Production Hub and 
      support potential expansion from the Base Case of 3.2Mtpa to 5.2Mtpa for 
      the Motheo Production Hub. Work has commenced on the A4 Feasibility Study, 
      with a target of completing the study and submitting the ESIA for the A4 
      project in the March 2022 Quarter. 
 
   -- Work programs currently underway include: 
 
          -- Metallurgical test work to define ore characteristics including 
             assessment of the suitability of processing when blended with ore 
             from the T3 Deposit; 
 
          -- Drilling for geotechnical and geo-hydrological purposes; 
 
          -- Environmental studies; 
 
          -- Mining studies; 
 
          -- Regulatory and environmental approvals; and 
 
          -- Infrastructure studies. 
 
   -- A maiden Ore Reserve is expected to be published during the December 2021 
      Quarter and will inform the A4 Feasibility Study for completion during 
      the March 2022 Quarter.

Noteworthy excerpts from Karl Simich, Sandfire's Managing Director and CEO, commenting on the announcement:

"This puts us in a very strong position to deliver on our expansion plans at the Motheo Copper Mine, with the updated Mineral Resource to form the basis of feasibility studies for the proposed 5.2Mtpa Expansion Case scenario."

"It's important to remember that A4 represents just the first in a long line of prospective targets that we've identified in the near-mine and broader regional environment that we'll progressively test".

"Recent drilling in the vicinity of A4 has already given us early encouragement, and we're very optimistic that we will be discovering new deposits and drilling out additional resources in the Kalahari Copper Belt for many years to come."

A link to Sandfire's announcement released today is set out below:

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02397318-6A1041654?access_token=83ff96335c2d45a094df02a206a39ff4

For further information on the Company, visit: www.metaltigerplc.com

Enquiries:

 
Michael McNeilly     (Chief Executive Officer)        Tel: +44 (0)20 3287 5349 
Mark Potter          (Chief Investment Officer) 
James Dance          Strand Hanson Limited            Tel +44 (0)20 7409 3494 
 Georgia Langoulant  (Nominated Adviser) 
Paul Shackleton      Arden Partners plc (Broker)      Tel: +44 (0)20 7614 5900 
 Steve Douglas 
Gordon Poole         Camarco (Financial PR)           Tel: +44 (0)20 3757 4980 
 James Crothers 
 Rebecca Waterworth

Notes to Editors:

Metal Tiger PLC is admitted to the AIM market of the London Stock Exchange AIM Market ("AIM") and the ASX Market of the Australian Securities Exchange Market ("ASX") with the trading code MTR and invests in high potential mineral projects with a base, precious and strategic metals focus.

The Company's target is to deliver a high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector. Metal Tiger has two investment divisions: Equity Investments and Project Investments.

Equity Investments invests in undervalued natural resource companies. The majority of its investments are listed on AIM, the TSX and the ASX, which includes its interest in Sandfire Resources Limited (ASX: SFR). The Company also considers selective opportunities to invest in private natural resource companies, typically where there is an identifiable path to IPO. Through the trading of equities and warrants, Metal Tiger seeks to generate cash for investment for the Project Investments division.

Project Investments is focused on the development of its key project interests in Botswana, where Metal Tiger has a growing interest in the large and highly prospective Kalahari copper/silver belt through its interest in Kalahari Metals Limited.

The Company actively assesses new investment opportunities on an on-going basis and has access to a diverse pipeline of new opportunities in the natural resources and mining sectors. For pipeline opportunities deemed sufficiently attractive, Metal Tiger may invest in the project or entity by buying publicly listed shares, by financing privately and/or by entering into a joint venture.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210721005388/en/

 
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    SOURCE: Metal Tiger plc 
Copyright Business Wire 2021

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July 21, 2021 03:29 ET (07:29 GMT)

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