TIDMMTR
RNS Number : 1563E
Metal Tiger PLC
16 October 2018
Metal Tiger Plc
16 October 2018
Metal Tiger Plc
("Metal Tiger" or the "Company")
Botswana Copper/Silver Project - T3 Feasibility Study Update
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).
Highlights:
-- T3 Mine Feasibility Study progressing well within budget, due for completion March 2019.
-- Metallurgical test work results identify capital and
operational cost savings versus Pre-Feasibility Study.
-- Botswana Power Corporation has commenced regional electricity
grid infrastructure building including a power line which is due to
pass within 12km of planned T3 Mine site.
-- First stage of T3 accommodation village complete with further expansion planned.
-- Scope and Terms of Reference for T3 Environmental Social
Impact Assessment approved by Botswana Department of Environment
Affairs, report due Q4 2018.
-- Completion of the Feasibility Study and approval of the
Environmental Social Impact Assessment are required ahead of
applying for the T3 mining license, which is anticipated in H1
2019.
Michael McNeilly Chief Executive Officer of Metal Tiger
commented:
"We are delighted to report that the T3 Mine Feasibility Study
remains on track to complete in March 2019, with the engineering
and design works both on schedule and within budget.
T3 continues to surprise to the upside and, at each juncture,
capitalises our belief that this is a highly economic and
significant copper project. The findings of the Feasibility level
metallurgical test work are particularly encouraging with the
coarser grind metal recoveries supporting a reduction in
anticipated capital, operational and power costs versus the
Pre-Feasibility Study stage model."
This announcement coincides with an update released today by MOD
which can be viewed through the following link:
http://search.asx.com.au/s/search.html?query=mod&collection=asx-meta&profile=web
Feasibility Study (FS) Work Stream Detail
Metallurgical Test work
-- FS level metallurgical test work has confirmed reduction in
expected capital and operating costs through lower comminution
power requirements and neutral pH floatation recoveries:
o Rougher floatation recoveries exceed 97% for Cu and 95% for
Ag.
o Target grind size increased to P(80) = 212um (P(80) = 106um
target used in Pre-Feasibility Study)
o Rougher floatation at neutral pH without lime addition allows
for operating cost savings.
o Coarser grind beneficial for tailings dewatering.
-- Cleaner optimisation test work to commence soon with plant
concentrate grades expected to average 30-35% Cu over the life of
mine.
Process Engineering
-- Comminution study completed by Orway Mineral Consultants
confirms that a standard crush/SAG/Ball circuit is appropriate for
all lithological domains within the proposed T3 pit.
-- Preliminary design work on the primary crushing station and
grinding circuit has commenced. Process plant design throughput is
3Mtpa with expansion capacity to 3.5Mtpa for modest incremental
capital. Plant layout will consider future expansion options beyond
3.5Mtpa. Work being undertaken by process engineering consultants
Sedgman.
Mining Engineering
-- T3 Mine pit design and pit optimisation study underway with
mine scheduling study expected to follow. Work being undertaken by
mining consultants SRK Consulting.
-- Additional geotechnical drilling is underway to provide
detailed information for the final pit design.
Mine Dewatering & Process Water
-- Pit dewatering study drilling programme and pump testing have
been completed in the area around the planned pit.
-- Groundwater modelling will be used to estimate yields from
pit dewatering with production water bores planned to be used for
ore processing and related infrastructure requirements.
Mine Infrastructure
-- Botswana Power Corporation has commenced installation of
infrastructure that will be used as part of the grid power line
adjacent to the A3 Highway between Maun and Ghanzi, 12km from the
T3 Project.
-- T3 Project area 25km(2) land acquisition agreement with farm
finalised during Q2 2018. Acquired land is sufficient for, and will
allow expansion capacity for, the open pit, process plant and
associated mine infrastructure.
-- Long term lease agreement executed with a farmer for a 100m
wide strip of farmland to be used as an access road between the A3
highway and the T3 Project. This will be used to service the mine
with enough space to accommodate the planned grid power spur
line.
T3 Accommodation Village
-- The first stage of a 40-person accommodation village, located
on the A3 Highway near Ghanzi, has been completed, subject to final
signoff.
-- Project Brief has been submitted to the Botswana Department
of Environment Affairs (DEA) to increase the size of the
accommodation village from the current size up to 400 personnel and
allow for an additional 300 personnel during construction.
Environmental and Social Impact Assessment (ESIA)
-- DEA approved the Environmental Scope and Terms of Reference for the ESIA in August 2018.
-- Approval confirms the work programme being undertaking will
satisfy the DEA expectations if it is carried out and reported to a
satisfactory standard and meets regulatory requirements.
-- Preliminary ESIA work programme commenced in December 2017
involving stakeholder meetings. ESIA includes a range of specialist
work, an environmental and social management plan and regular
stakeholder engagement, all of which is well advanced.
-- ESIA Report on track for submission to the DEA during Q4
2018. This work compilation is being prepared by consultants Loci
Environmental.
Current FS Resource
-- Feasibility Study is based upon the revised Mineral Resource
Estimate 60Mt @ 0.98% Cu and 14g/t Ag at a cut-off of 0.4% Cu,
including approximately 36Mt @ 1.14% Cu and 16g/t Ag in the
Indicated Resource category (announced 16 July 2018). Resource
prepared by independent consultants CSA Global.
Funding for T3 Project
-- MOD report that they are working with debt finance advisers
having received significant interest from several global financial
institutions in providing finance to develop the T3 Project.
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
13,974,220 MOD shares, equivalent to 6.1 % of MOD's issued share
capital and 154,167 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
Mark Potter (Chief Investment Officer) Tel: +44 (0)20 7099
0738
Stephen Allen or Bhavesh RFC Ambrian Ltd Tel +44 (0)20 3440
Patel (Nominated Adviser) 6800
Charlie Cryer RFC Ambrian Ltd Tel +44 (0)20 3440
(Joint Broker) 6800
Nick Emerson SI Capital Tel: +44 (0)1483
(Joint Broker) 413 500
Gordon Poole
James Crothers Camarco
Monique Perks (Financial PR) 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 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. The Company's key strategic objective is to ensure the
distribution to shareholders of major returns achieved from
disposals.
Metal Tiger has two investment divisions, Direct Equities and
Direct Projects.
The Direct Equities division invests in undervalued natural
resource companies listed on London's AIM, the ASX and the TSX.
Through the trading of equities and warrants, Metal Tiger seeks to
generate cash for investment in the Direct Projects division.
Metal Tiger's Direct 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 lead/zinc/silver
mines as well as licences, applications and critical historical
data covering antimony, copper, gold, lead, zinc and silver
opportunities.
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.
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 1,000 km(2) ), 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
included 90 diamond core drill holes designed to infill the
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 included 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. Drilling approval has been granted
for the wider T3 Dome with the acceptance of the T3 Dome EMP
announced on 3 April 2018.
The results of the T3 Open Pit Pre-Feasibility Study were
announced on 31st January 2018; the revised and upgraded T3
Copper/Silver Deposit Mineral Resource Estimate was announced 2nd
July 2018; and a Resource re-classification announced 16(th) July
2018.
On 18 July 2018, MTR and MOD announced they had entered into a
binding agreement for MOD to acquire MTR's 30% interest in the T3
Project and rights for an option to acquire MTR's interests in any
new JV resource which progresses to a scoping study within 3 years
of completion of the agreement.
The T3 Open Pit Feasibility Study, towards a decision to mine,
is currently underway.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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