METAL TIGER PLC: A4 Ore Reserve and Motheo Expansion PFS - Replacement
September 22 2021 - 4:48AM
UK Regulatory
TIDMMTR
The issuer advises that the following replaces the Metal Tiger
plc Sandfire A4 Step-Out Drilling Update announcement released at
08:38 AM British Summer Time on 22 September 2021.
The headline of the announcement has been changed from 'Sandfire
A4 Step-Out Drilling Update' to 'A4 Ore Reserve and Motheo
Expansion PFS'.
The full corrected version is shown below.
22 September 2021
Metal Tiger plc
("Metal Tiger" or the "Company")
A4 Ore Reserve and Motheo Expansion PFS
Metal Tiger plc (AIM: MTR, ASX: MTR), the AIM and ASX listed
investor in natural resource opportunities, is pleased to provide
an update in relation to its investment in Sandfire Resources
Limited ("Sandfire") which contains information relevant to Metal
Tiger's 2% uncapped net smelter royalty over circa 8,000km2 of
Sandfire's licence holdings in the Kalahari Copper Belt including
PL190/2008 (excluding the T3 Motheo Project area), which hosts the
A4 deposit. Metal Tiger also has a capped US$2m 2% net smelter
royalty over production from the T3 Motheo mine. Sandfire today
announced a Maiden Ore Reserve for the A4 Deposit and a PFS
confirming 5.2Mtpa for the Motheo Copper Project.
Metal Tiger is currently interested in 6,143,357 Sandfire shares
representing approximately 3.4% of Sandfire's issued share capital.
As announced on 08 December 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.
Highlights:
-- Maiden Probable Ore Reserve completed for the A4 Deposit, located 8km
west of the Motheo Copper Mine in Botswana:
-- 9.7Mt at 1.2% Cu and 18g/t Ag for 114kt of contained copper metal and
5.7Moz of contained silver.
-- 85% of the contained copper in the updated A4 Mineral Resource announced
on 21 July 2021 now classified as Ore Reserves.
-- Ore Reserve confirms A4 as a high-grade source of additional ore feed for
the Motheo Copper Mine, underpinning an expanded long-life 5.2Mtpa
Production Hub.
-- Sandfire will now move directly to a Definitive Feasibility Study (DFS)
for the 5.2Mtpa Motheo Expansion, with the DFS expected to be completed
in Q3 of FY2022.
-- Pre-Feasibility Study (PFS) completed to inform the A4 Ore Reserve has
indicated outstanding project economics from an expanded 5.2Mtpa mining
operation compared to the initial 3.2Mtpa base case development scenario
(see ASX Announcement 1 December 2020):
-- 116% increase in pre-tax NPV7% to US$672 million ($937 million) and IRR
of 36%,
-- Mine life of 10.5 years, peak production of 60ktpa copper in concentrate,
strip ratio of 6.5 waste to ore,
-- 15% decrease in LOM all-in sustaining costs to US$1.56/lb.
-- Opportunities identified to further enhance the economic and technical
outcomes of the A4 PFS through integrated mine scheduling and pit
optimisation, with these enhancements to be incorporated into the DFS for
the 5.2Mtpa Expansion Case.
-- Total pre-production development capital increased to US$366 million
($504 million), incorporating development costs for the A4 Open Pit plus
an updated cost forecast for the Motheo plant to account for increased
steel costs, foreign exchange movements and COVID-related disruptions.
-- Outstanding potential for further Resource and Reserve growth, with
recent step-out drilling confirming high-grade mineralisation 1.2km
south-west of the A4 Mineral Resource envelope and drilling continuing
across an exceptional target pipeline within Sandfire's extensive
land-holding in the Kalahari Copper Belt.
A link to the Sandfire announcement released today can be found
below:
A4 Ore Reserve and Motheo Expansion PFS:
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02424313-6A1051362?access_token=83ff96335c2d45a094df02a206a39ff4
Michael McNeilly, Chief Executive Officer of Metal Tiger,
commented:
"It is in the words of Mr. Simich a pivotal moment in Sandfire's
plans to establish a major new long-term mining hub at Motheo. In
my opinion these sorts of robust numbers help provide a steady base
from which to grow, both underpinning the investment case in
Sandfire as well as underpinning a base case value of the 2%
uncapped royalty where I believe A4 has significant room to expand
but also that there will be additional discoveries to feed the hub
that will be captured by MTR's royalty. Exploration, especially
resource drill outs in the KCB are not budget light affairs so the
fact that Sandfire are committed to continuing significant drilling
both in the near-mine area but also over the wider Kalahari
Copperbelt is why I believe the Kalahari Copperbelt will emerge as
a significant production hub in the medium term.
It is also worth noting that significant work has already
progressed on areas such as environmental studies and approvals,
met testwork, geotechnical drilling and analysis and mine
scheduling and open pit optimisation. Subject to currently
fast-tracked Environmental & Social Impact Assessment Studies
and Mining Licence approvals it is clear that should further
optimisation, which includes combined T3 and A4 Open Pit scheduling
prove optimal then we could potentially see A4 ore production
brought forward. We look forward to the news of debt funding as
well as the 5.2Mtpa Expansion Case DFS scheduled to be completed in
Q3 FY2022 (Q1 CY2022). Given the speed from discovery of A4 in
early Q12020 to today we remain confident that Sandfire will
continue to deliver key milestones at a quick pace."
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
James Harris (Nominated Adviser)
Robert Collins
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/20210922005391/en/
CONTACT:
Metal Tiger plc
SOURCE: Metal Tiger plc
Copyright Business Wire 2021
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