TIDMMTR
15 December 2020
Metal Tiger plc
("Metal Tiger" or the "Company")
Kalahari Metals Limited: Project Update
Metal Tiger plc (AIM: MTR), the London Stock Exchange AIM listed
investor in natural resource opportunities, is pleased to provide
an update in respect of the Botswana copper focussed explorer,
Kalahari Metals Limited ("KML"), in which Metal Tiger currently has
a 62.17% equity interest.
The first phase of diamond drilling focussed on the delineation
of stratigraphic markers for copper mineralisation at KML's
Kitlanya East ("KIT-E") Project has completed with five diamond
drill holes (KITE01-05) totalling 1,709m completed (the
"Stratigraphic Drilling"), along with additional phases of soil
geochemical sampling.
This work has been designed to target prospective geological
settings analogous to the neighbouring Sandfire Resources Limited's
("Sandfire") T3 and A4 deposits. T3 is approximately 5km from the
northern licence of the KIT-E project ("North Target").
The results of the stratigraphic drilling have been incorporated
into an innovative Mineral Systems Analytical Model in conjunction
with the reprocessing and re-inversion of the 2019 airborne
electromagnetic ("AEM") geophysical survey data; soil geochemistry
and historical drill core logging; to result in the identification
of compelling drilling targets. A follow-up drill programme of
reverse-circulation ("RC") and diamond drilling is being planned to
test these targets.
As announced today KML has signed a Share Purchase Agreement
with Cobre Limited ("Cobre"), which will, following completion of
the transaction and subject to obtaining change in control approval
from the Minister of Mineral, Energy and Water Resources of the
Republic of Botswana, result in Metal Tiger owning a 59.57%
economic interest (comprising a 49% direct interest in KML and a
20.72% interest in Cobre) (the "Cobre Transaction").
Michael McNeilly, Chief Executive Officer of Metal Tiger,
commented:
"We are excited to report that the work at the KML Kitlanya East
Project, located in the highly prospective Kalahari Copper Belt,
has with the integration of analysis of the stratigraphic drilling
interpretation, reprocessed airborned geophysics and soil sampling
data, identified multiple stratigraphic dome targets that we
consider highly prospective for hosting copper--silver
mineralisation. Given its proximity to the Sandfire T3 development
project and A4 resource and prospect, this is of significant value
to both KML and Metal Tiger and subject to completion of the
transaction announced today, Cobre Limited.
"Our interests in the Kalahari Copper Belt continue to mature
positively and we look forward to providing further updates on a
planned drill programme to test these targets in due course."
Technical Summary
Stratigraphic Drilling Programme
-- Stratigraphic drilling has confirmed the potential for shallow
structurally controlled Cu-Ag mineralisation associated with anticlines
and dome targets in the North Target.
-- D'Kar Formation stratigraphy intersected, including marker dark
carbonaceous siltstones which correlate with conductors in the AEM data.
-- Trace Cu, Pb and Zn mineralisation identified on thrust/shear planes and
in underlying extensional zones associated with dilational
quartz-carbonate veins (holes KITE-02 and KITE-05).
-- Important alteration minerals (sericite, albite and haematite) often
associated with the distal portions of mineral deposits in the Kalahari
Copperbelt have been identified in proximity to several thrust zones
(holes KITE-02 and KITE-05).
Soil Sampling
-- Total of 1,101 additional soil geochemistry samples collected over the
North Target, providing infill to an earlier phase of regional soil
sample traverses.
-- Significant Cu and Zn anomalies demonstrating a distinct correlation with
thrusts interpreted from high-resolution magnetic data.
-- Results also correlate well with historical TerraLeach Cu sampling
results on the western portion of the North Target.
Reprocessing of AEM Data
-- Remodelling of the AEM geophysics data has provided significant
additional information on fold geometry which has been correlated with
the stratigraphic drill results to prioritise geological 'dome' targets
for follow-up drilling.
Target Generation
-- Priority areas for drill testing have been identified using a
Knowledge-driven Mineral Systems Analysis approach using the geological
learning from the Sandfire A4 deposit as a guide.
-- Analytical approach generates key vectors to mineralisation relating to
trap-site geology (stratigraphy, proximity to conductive carbonaceous
siltstones, anticlines and local fold hinges), pathways for hydrothermal
fluid movement (thrusts, shears, faults, fault jogs, WNW trending
structures and dislocations) and evidence for alteration (breaks in AEM
conductors) and Cu mineralisation (Cu and Zn soil anomalies).
-- The key vectors are combined to generate a prospectivity map highlighting
the priority areas for follow-on drill testing.
Illustrative figures for viewing in conjunction with this
announcement showing the area concerned (Figure 1) and the below
referenced figures (2-6), can be viewed on the company website at:
https://www.metaltigerplc.com/kml-update-december
Stratigraphic Drilling Programme
The Stratigraphic Drilling programme comprising four diamond
holes for total of 1,709m of drilling was carried out in two
phases, due to COVID-19 pandemic lockdown restrictions, by the
drilling contractor OreZone Drilling. Five holes (see Table 1) were
drilled along the northern margin of the KIT-E project using AEM
conductors as a guide. Two of the five holes (KITE-01 and KITE-03)
were abandoned due to poor intersection angles (being replaced by
KITE-02 and KITE-04). Drill collar positions are illustrated in
Figure 2 (see above link).
Table 1: Kitlanya Project Stratigraphic Drillhole Collar
Table
Drill Hole No UTM_E UTM_N RL (m) EOH (m) Azimuth Dip
KITE-01 642368 7638590 1108 87.15 315 -70
KITE-02 642368 7638590 1108 356.90 135 -65
KITE-03 638083 7636653 1120 39.12 315 -65
KITE-04 638083 7636653 1120 567.38 135 -65
KITE-05 626982 7629850 1125 681.17 135 -75
Results from the stratigraphic drilling are summarised as
follows:
-- Hole KITE-02
-- Intersects package of siltstones, sandstones and marls of the
lower DKF.
-- Includes intersections of carbonaceous siltstone unit,
corresponding with the position of AEM conductors.
-- Intersection of several zones of shearing and dilational veining
(quartz-carbonate) often with trace Cu-Pb-Zn mineralisation.
-- Higher proportion of siltstone to sandstone, low magnetic
susceptibility, carbonaceous siltstone units, and abundant pyrite
and pyrrhotite suggests this is lower in the DKF stratigraphy than
other holes.
-- Hole KITE-04
-- Intersects package of sandstones and siltstones in the middle
D'Kar Formation.
-- Several shear zones and mylonitic thrusts were intersected with
extensive associated hydrothermal alteration.
-- High magnetic susceptibility, sandstone composition and dominance
are more indicative of transition zone to middle D'Kar Formation.
-- Hole KITE-05
-- Intersects a package of sandstones and siltstones probably in the
lower portion of the middle D'Kar Formation.
-- Extensive pyrite and pyrrhotite with several intersections of
trace Cu, Pb, Zn associated with quartz-carbonate veining.
-- Low magnetic susceptibility and higher proportion of siltstones vs
KITE-04 and minor carbonaceous siltstone intersections suggest
this hole is located lower in stratigraphy (although probably
higher than KITE-02).
In addition to the recently completed holes, drill cores from
historical drilling undertaken by New Hana Copper Mining Ltd ("New
Hana") were located and relogged. The geological logs from New Hana
holes NH01 to NH07D, combined with logs from KITE-05, provide a
NW-SE section across the main structure of interest. New Hana
undertook a combination of percussion, RC and diamond drilling,
magnetic geophysics and TerraLeach (TL1) soil sampling as a
previous licence holder of the area (PL070/2017).
Historical drill hole results are summarised as follows:
-- All holes are located in the D'Kar Formation
-- NH01D and NH02D are likely in the lower portion of the middle D'Kar
Formation
-- NH03D -- NH06D intersect units in the middle D'Kar Formation
-- NH07D is likely in the upper portion of the D'Kar Formation
These results describe a broad anticlinorium with superimposed
doubly plunging anticlines and synclines. The presence of mid to
lower D'Kar Formation stratigraphy, abundant pyrite, pyrrhotite and
carbonaceous siltstones provides encouragement that the
stratigraphic position in the D'Kar Formation, host rocks and
trap-sites are analogous to neighbouring Sandfire T3 and A4
deposits. Intersection of thrusts with hydrothermal alteration,
dilational quartz-carbonate veining and associated trace Cu-Pb-Zn
mineralisation provide evidence for the development of appropriate
fluid pathways.
See Figure 2 (linked above): Locality map illustrating the
position of recently completed stratigraphic holes along with
historical drilling. Underlay of the lithostructural interpretation
with AEM conductors highlighted on derivative image magnetic
data.
Soil Sampling
A total of 1,101 soil samples were collected over the North
Target, providing infill to an earlier phase of regional soil
sample traverses. Samples were screened to -90 um fraction and
analysed using a Niton(TM) pXRF along with appropriate blanks and
standard reference samples. The pXRF results provide a useful first
pass review prior to sending samples for laboratory assay.
Soil sampling results have identified distinct Cu and Zn
anomalies which correlate with historical (New Hana) TerraLeach TL1
Cu sampling results on the western portion of the North Target. Of
particular interest is the relationship between Cu anomalies and
interpreted thrusts suggesting the metal source may be introduced
along thrust faults.
See Figure 3: Soil sample results (Cu) on vertical derivative
magnetic image.
Reprocessing of AEM Geophysics Data
AEM geophysics data collected over the north target area in 2019
using NRG's XCite(TM) system has been reprocessed and inverted
using GALEI software which has extracted additional structural
information compared to previous results. Interpretation of results
has aided identification of anticline hinge zones which present
targets for Cu-Ag mineralisation.
See link to Figure 4: Conductivity sections and volume
illustrating the significant structural detail apparent in the
reprocessed AEM data; and Figure 5: Section based 3D interpretation
of AEM data highlighting anticline fold axis. Inset of geological
interpretation based on drilling and AEM.
Target Generation
Priority areas for drill testing have been identified using a
Knowledge-driven Mineral Systems Analysis approach using the
Sandfire A4 deposit as a guide. Essentially, key vectors to
mineralisation relating to trapsite geology (stratigraphy,
proximity to conductive carbonaceous siltstones, anticlines and
local fold hinges), pathways for hydrothermal fluid movement
(thrusts, shears, faults, fault jogs, WNW trending structures and
dislocations) and evidence for alteration (breaks in AEM
conductors) and Cu mineralisation (Cu and Zn soil anomalies), have
been combined to create a prospectivity map highlighting priority
areas.
See linked Figure 6: Examples of different evidence layers used
for targeting. Layers are defined in terms of distance to-
properties.
Project Background
Kalahari Metals Limited, which was incorporated in England &
Wales on 3 May 2017, holds interests in 12 highly prospective
exploration licences covering a total area of 8,595km(2) in the
Kalahari Copper Belt of Botswana, comprising two 100% owned
exploration licences, five exploration licences subject to a
binding earn-in agreement with Triprop Holdings (Pty) Limited
(includes the Ngami Copper Project), and five exploration licences
held by 100% owned subsidiary, Kitlanya Limited.
Metal Tiger holds a conditional 2% net smelter royalty over all
KML's wholly owned licences, being seven licences covering, in
aggregate, 6,650km(2) (together, the "Royalties"). On completion of
the Cobre Transaction, it has been agreed that the conditions
attached to the Royalties will fall away. The five exploration
licences owned by Triprop Holdings (Pty) Limited (in which KML has
a 51% interest) do not form part of the Royalties.
Further details are available under the Project Investments
section of the Company's website at:
https://www.metaltigerplc.com/portfolio/project-investments/kalahari-metals.
This announcement contains inside information for the purposes
of the market abuse regulation (EU No. 596/2014) ("MAR").
Qualified Person's Statement
The technical information contained in this announcement has
been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM,
MAusIMM, FGS), who is a qualified geologist and acts as the
Qualified 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
Enquiries:
Michael McNeilly (Chief Executive Officer) Tel: +44 (0)20 7099 0738
Mark Potter (Chief Investment Officer)
Richard Tulloch Strand Hanson Limited (Nominated Tel +44 (0)20 7409 3494
James Dance Adviser)
Jack Botros
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
Hugo Liddy
Notes to Editors:
Metal Tiger PLC is admitted to the AIM market of 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. 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/20201215005620/en/
CONTACT:
Metal Tiger plc
SOURCE: Metal Tiger plc
Copyright Business Wire 2020
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