Botswana Copper/Silver Project T3 Update & Major Regional Exploration Programme
Metal Tiger Plc
25 January 2018
Metal Tiger Plc
("Metal Tiger" or the "Company")
Botswana Copper/Silver Project –T3 Update & Major Regional Exploration Programme
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 partner MOD Resources Limited (ASX:MOD) (“MOD”) in the Kalahari Copper Belt in Botswana (70% MOD Resources/30% Metal Tiger).
- T3 Open Pit Prefeasibility Study assuming a 2.5Mtpa base case and 4.0Mtpa upside case, on track and due to be completed by end of January. The T3 Open Pit and T3 Underground resource drilling will continue through H1 2018.
- Major regional exploration programme commenced, focussed on targets outside T3 Project area, namely the T3 Dome, T20 Dome and ‘T-Rex’ targets.
- Objective to replicate T3 discovery techniques (soil sampling, geophysics & drill testing).
- Environmental Management Plan (EMP) lodged for drill testing of highest priority T3 Dome airborne electromagnetic (AEM) geophysics survey targets, approval expected March.
- T3 Dome AEM geophysics 193km2 survey-extension completed, results pending.
- Trial AEM geophysics survey (circa 787km2) on T20 Dome and T4 ([email protected]% Cu & 111g/t Ag) will commence in early February.
- Soil anomalies extend >140km along Central Structural Corridor from T3 Dome to T20 Dome, including a 60km long zone with anomalous copper and Zinc at T20 Dome.
- Tshukudu has exercised the Option to acquire two key licences (1,010km2) over T20 Dome.
Michael McNeilly Chief Executive Officer of Metal Tiger commented:
“We are pleased to outline the key elements of our comprehensive strategy to test the copper potential of our tenement holdings outside of the immediate T3 Project area.
Given the initial findings of the joint venture’s regional soil and geophysics programmes, and the increased knowledge of the structural controls and mineralisation styles likely linked to the new copper and zinc anomalies, we feel that the continued investment through regional drill testing is likely to yield exciting returns.
Benefiting from the updated knowledge of the distribution and style of copper deposits in this part of the Kalahari Copper Belt, we consider it a strong possibility, that one or more of the regional anomalies, within our extensive tenement package, will turn out to be an as-yet undiscovered T3 style sediment hosted copper deposit.
As part of the Mining Indaba week in Cape Town, Metal Tiger and MOD Resources will be meeting investors and plan to discuss the results of the Prefeasibility Study at the 121 Mining Investment event on 5th to 6th February. This will be followed by a T3 site visit with a number of investors and interested parties.”
This announcement coincides with an update released today by MOD which can be viewed through the following link:
Regional Exploration Programme Update
- Major exploration campaign now scheduled to commence over joint venture T3 Dome and T20 Dome.
- T3 Dome drilling expected to commence in March following approval of the Environmental Management Plan (EMP). Eight drill rigs are operating at T3 (6 diamond rigs, 2 reverse circulation rig) and are available to move onto the regional targets when the EMP is approved.
- Three further AEM geophysics survey blocks are planned along the T20 Dome and adjacent T4 copper prospect, to commence in early February. These will cover areas with strong soil anomalism and structural complexity interpreted from magnetics, with a total planned survey area of circa 787km2.
- The soil sampling has defined copper and zinc anomalies with similar characteristics that led to the discovery of T3, along a circa 140km long Central Structural Corridor (the CSC). With copper and zinc anomalies occurring within a 60km (E-W) by 20km (N-S) area on the eastern side of the T20 Dome (part of which will be covered in the planned February AEM survey). These soil anomalies appear to merge with the T4 anticline to the north.
- Priority drilling is planned for targets where geophysical anomalies from the initial T3 Dome AEM survey and elevated soil sample anomalies coincide.
- Only previous drilling near the T20 Dome, is at the adjacent T4 where reverse circulation drilling on a soil anomaly (hole MO-A-04R) intersected [email protected] 6.12% Cu & 111g/t Ag from 101m (announced 1 April 2016). Further drilling at T4 was put on hold when T3 was discovered.
- Programme objective is to identify further T3-Style mineralisation within the extensive portfolio of licences.
- Drill targets at T3 Dome and T20 Dome will include large (5km to >20km long) shallow dipping domal structures interpreted from magnetic geophysics, copper and zinc soil anomalies, within prospective sedimentary sequences.
- Drilling targeting the 11km long anticlinal structure (centred around T3) named ‘T-Rex’, has already started, and will continue, with first assay results expected in February.
- Domal structures considered prime structural traps for sediment hosted copper mineralisation. Recent examples include the Kamoa-Kakula Project (Ivanhoe Mines Ltd.) copper discovery in the Democratic Republic of Congo, which is hosted by a series of shallow domes.
Senyetse Option Agreement Exercised
- Tshukudu exercised the Senyetse Option Agreement to acquire 100% interest in exploration licences PL 126/2013 and PL 127/2013 with a combined area of 1,010km2 over the centre of the T20 Dome, in mid-January.
- Widespread anomalous soil results from Tshukudu sampling have confirmed the prospectivity of the two tenements.
- Discussions with land holding farmers throughout the T20 Dome are underway with the Project Brief for an extensive drill programme planned to be lodged with the Department of Environmental Affairs (DEA) in Q1 2018.
Project Timelines, first-half 2018
The planned 2018 first half (H1) schedule for both open pit and underground T3 workstreams and the regional exploration work programmes is summarised:
- T3 Open Pit Project
- January: Prefeasibility Study (PFS) completion, results expected end of January
- February: Commence definitive feasibility study (DFS)
- T3 Underground Project
- Mid-January to Mid- April: Resource Drilling
- Mid-April onwards: Mineral Resource & Scoping Study
- T-REX Target
- Ongoing diamond drilling of the structure
- T3 Dome Regional Programme
- December 17: AEM survey extension flown over T21, results expected in February
- January to mid-March: DEA approval process
- Mid-March onwards: diamond drilling programme to test highest-ranking AEM targets
- T20 Dome & T4 Regional
- February: AEM geophysics planned
- Late February to end of April: DEA approval process
- May onwards: diamond drilling programme to test new targets
Soil Sampling Programme Summary
The interpretation of results from systematic soil sampling within Tshukudu licences, over the 170km long Central Structural Corridor (CSC) is outlined below. This includes 31,800 samples collected by Tshukudu and previous explorers.
- Copper and Zinc soil anomalies (>15ppm Cu, > 12ppm Zn) extend over >140km along the CSC.
- Zn is used as a Cu pathfinder, as Zn more mobile in weathering profile and more likely to be detected in the surficial calcrete layer extensive throughout the CSC.
- Highest T20 Dome soil Zn value to date 57ppm. Soil anomaly which led to discovery of T3 Deposit was 27ppm Zn & 28ppm Cu.
- Largest group of anomalies is in eastern part of T20 Dome, including T4, extending approximately 60km east-west and up to 20km north-south.
- Samples collected immediately outside the CSC generally not anomalous, significant anomalies exist in different structural domains (e.g. T17, 50km north of T20 Dome).
- Highest zinc soil value from CSC to date 57ppm Zn (T20 Dome).
- Soil sampling over eastern part of T3 Dome is ongoing and is planned to cover the western part of T20 Dome up to 20-30km west of current anomalies.
Airborne Electromagnetic (AEM) Geophysics Update & Summary
- During December 2017 AEM geophysics survey coverage was extended by 193km2 to cover the T21 soil anomaly and another structural dome east of the initial survey area. Results expected February.
- EMP application to drill the highest ranking T3 Dome AEM targets was lodged with the Department of Environmental Affairs in late December and is expected to be approved in mid-March.
- The initial T3 Dome AEM survey has been very effective in defining numerous drilling targets (announced 21 July 2017). The AEM data has also been used to generate a 3D model of the T3 host sequence to circa 500m depth, further assisting drill targeting.
Background information on the T3 Project
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 1,000km2), which is the focus of rapidly increasing exploration activity undertaken by the JV. 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 Phase 2 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. This includes up to 70 planned diamond core drill holes designed to infill the current Resource and test for possible extensions. The objective of the infill program is to increase geological confidence and upgrade categorisation of the T3 Resource. The programme also includes grid drilling to investigate the potential for an underground Resource down-dip and along strike from the planned open-pit, and to investigate geophysical targets.
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.
In addition to its 30% interest in the JV, Metal Tiger holds 108,200,000 MOD shares, equivalent to 5.71% of MOD’s issued share capital and 1,541,667 MOD options each exercisable price of 6 cents (Australian) on or before 15 April 2019.
For further information on the Company, visit: www.metaltigerplc.com:
|Michael McNeilly||(Chief Executive Officer)||Tel: +44(0)20 7099 0738|
|Keith Springall||(Finance Director & Company Secretary)||Tel: +44 (0)20 7099 0738|
|Stephen Allen or Bhavesh Patel|| RFC Ambrian Ltd |
|Tel +44 (0)20 3440 6800|
|Jonathan Williams|| RFC Ambrian Ltd |
|Tel +44 (0)20 3440 6800|
|Nick Emerson|| SI Capital |
|Tel: +44 (0)1483 413 500|
|Rita Adiani||NRG||Tel: +44 (0)20 3709 4504|
| Gordon Poole |
| Camarco |
|Tel: +44 (0)20 3757 4980|
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.
Metal Tiger plc