TIDMMTR
RNS Number : 8573W
Metal Tiger PLC
28 April 2021
28 April 2021
Metal Tiger plc
("Metal Tiger" or the "Company")
Sandfire Resources Update
Metal Tiger plc (AIM: MTR), the London Stock Exchange AIM listed
investor in natural resource opportunities, is pleased to announce
an update in relation to its investment in Sandfire Resources
Limited ("Sandfire") which also contains material information
regarding Metal Tiger's 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 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 has today announced its quarterly report for the period
ended 31 March 2021 and an associated presentation.
Metal Tiger is currently interested in 6,179,057 Sandfire shares
representing approximately 3.5% 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.
Highlights extracted from Sandfire's quarterly report for the
period ended 31 March 2021:
Corporate and Financial:
- Group cash on hand as at 31 March 2020 of A$463.6 million and
no debt (excluding lease liabilities).
Degrussa Operation (Australia):
- 16,803 tonnes of contained copper production in the March 2021
quarter at a C1 cost of US$0.87/lb along with 9,100oz Au with
guidance given to meet the upper end of 67-70kt Cu and 36- 40koz
Au.
- Continued multi-pronged exploration progams continued across
the Doolgunna Province. A circa 2,400m deep diamond hole is in
progress at Red Bore to provide a platform for down-hole
geophysical surveys to test the conceptual feeder zone down-plunge
of the C5 deposit.
- Current phase of drilling completed at the Old Highway Gold
Prospect. Work continues on studies for the Company's gold
transition strategy.
Tshukudu (Botswana):
- Initial site activities commenced at the T3-Motheo Project
with sterilisation drilling underway, clearing for a 15km access
road and for the construction of a 200 - person camp. Orders placed
for all key process equipment and tenders for the mining contract
and other key items well advanced.
- Mining Licence for the T3 Project expected to be awarded in
the June 2021 Quarter (April - June), clearing the way for major
construction activities to commence.
- Resource drilling program completed at the A4 deposit to allow
upgrading of the existing Inferred Resource to Indicated status.
The upgraded Resource will underpin the completion of a Feasibility
Study and maiden Ore Reserve, which are on-track for delivery in
the September 2021 Quarter.
- Exploration focus shifted to other priority targets within the
Motheo Expansion Project as part of a major step up in drilling of
new targets commencing in the June 2021 Quarter.
Notable excerpts from the body of the quarterly:
T3 Motheo Project:
o Presentations were made to the Department of Mines as part of
the Mining Licence approval process and to the Ghanzi Regional
Council, with additional information requested by and supplied to
the Department of Mines in April.
o Pre-development activities continued during the Quarter at the
T3-Motheo Project, with a program of sterilisation drilling
undertaken across key infrastructure locations (Tailings Storage
Facility and Plant Site). 24 sterilisation holes (2,880m) planned
and started in mid-March and expected to be completed in May (note
more details in section 5.2 of Sandfire's release).
o The Government of Botswana has not notified Sandfire of its
intention regarding the acquisition of an ownership stake (can own
up to 15% fully contributing interest).
o Power Supply Agreement for the High Voltage Power Supply from
the Botswana Power Corporation (BPC) is in its final stages of
negotiation and expected to be completed in the June 2021 Quarter.
Expressions of Interest have also been received for the build, own,
operate and transfer (BOOT) of a solar generation plant to supply
up to 30% of the mine's electrical load.
o Proposals to provide debt financing for the T3-Motheo Project
were received from nine participating banks, with the proposals
currently being analysed and short-listed.
o Recruitment has commenced for a number of senior positions,
including Executive Head of Botswana and General Manager Motheo
Operations, with appointments expected in coming months.
A4 Resource Drilling and Feasibility Study
o A maiden JORC 2012 compliant Inferred Mineral Resource for the
A4 deposit in December 2020, comprising 6.5 million tonnes grading
1.5% copper and 24g/t Ag for an estimated 100,000 tonnes of
contained copper metal and 4.9 million ounces of silver was
announced on 1 December 2020.
o During the Quarter, Sandfire completed in-fill and extensional
drilling at the A4 Copper-Silver deposit, located 8km west of the
planned Motheo processing plant, aimed at upgrading the existing
Inferred Resource to Indicated status to underpin the completion of
a Feasibility Study.
o Work also commenced on the A4 Feasibility Study with a target
of completing the study and submitting the ESIA for the A4 project
in the December 2021 Quarter.
o Given its location to the planned processing plant and
infrastructure at T3, the A4 deposit has the potential to become an
important source of higher grade ore for the Motheo Production Hub
and supports the potential expansion from the Base Case of 3.2Mtpa
to 5.2Mtpa for the Motheo Production Hub.
o Localised high grade vein intersections were not included in
the maiden Inferred Mineral Resource and will be included in the
updated Mineral Resource estimate for A4 expected in the June 2021
Quarter. The results also demonstrate the potential for further
high-grade mineralisation potentially occurring elsewhere along the
A4 Dome and in other untested targets in the T3 Expansion Area
where drilling is being stepped up.
o A maiden Ore Reserve Estimate is expected to be completed in
the September 2021 Quarter and a Feasibility Study in the December
2021 Quarter.
o An extensive geotechnical drilling program commenced at the A4
deposit in March, with approximately 47% of the 2,340m program
completed by Quarter-end. Preliminary mining studies were also
completed, with key outcomes from a Scoping Study on the A4 deposit
confirming the potential of the project to substantially increase
cash-flows from the T3 Project with the inclusion of ore from a
two-stage open pit at A4.
o Metallurgical testwork commenced, along with groundwater
studies and water bore drilling. Work also commenced on the
potential consolidation of environmental approvals within the
Motheo Hub.
Tshukudu Exploration
o Targeting high-grade satellite discoveries within the Motheo
Expansion Project area with the potential to increase the scale of
the Motheo Production Hub;
o Delineating additional Resources with the potential to extend
mine life; and
o Targeting major new regional discoveries to unlock the copper
belt's broader potential.
o With the completion of in-fill drilling at the A4 deposit, the
focus of exploration drilling has shifted to other targets within
the Motheo Expansion Project with drilling underway at TG02, south
of the A4 deposit, and TG07, located 3km west of the planned T3
open pit. Drilling at a third target, TG06, 8.5km west of T3, is
planned as soon as access is available.
o Other priority targets within the Motheo Expansion Project
include A1, A27, T1 and T2 East, which are located within circa
30km north and north-east of T3 on private farms. Access to these
targets is currently being negotiated.
o During the Quarter, Sandfire commenced deep drilling to test
the mineralised NPF contact at the western end of the A4 Dome,
approximately 1km west of previously reported copper intersections.
Hole MO-A4-150D intersected a wide down-hole interval of weakly
disseminated chalcocite and bornite mineralisation, with true width
unknown. The hole lifted significantly and failed to intersect the
NPF contact and a follow-up hole with a rig more suited to
controlled drilling is currently being planned.
Black Butte (USA)
- Exploration drilling program completed to identify additional
Mineral Resources in close proximity to planned infrastructure,
with assay results expected in May 2021.
Notable excerpts from management statement by Sandfire's
Managing Director and CEO, Karl Simich:
- "Government of Botswana is expected to award the Mining
Licence for the T3 Project in the coming weeks, clearing the way
for full-scale construction of the US$259 million project
development to commence."
- "The delivery of an upgraded Resource at A4 will underpin a
Feasibility Study targeted for completion in the September 2021
Quarter. The A4 deposit represents a key element of our strategy to
rapidly expand production at the Motheo Production Hub from the
initial base case rate of 3.2Mtpa up to 5.2Mtpa."
- "Regional exploration across the Kalahari Copper Belt is also
moving into top gear, both within the Motheo Expansion Area and
further afield, including across our licences in Namibia."
Links to Sandfire's announcements released today are set out
below:
Sandfire March 2021 Quarterly Report
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02367715-6A1030062?access_token=83ff96335c2d45a094df02a206a39ff4
Sandfire March 2021 Quarterly Report Presentation
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02367717-6A1030063?access_token=83ff96335c2d45a094df02a206a39ff4
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)
James Dance Strand Hanson Limited (Nominated Tel +44 (0)20 7409
Georgia Langoulant Adviser) 3494
Paul Shackleton Arden Partners plc (Broker) Tel: +44 (0)20 7614
Steve Douglas 5900
Gordon Poole Camarco (Financial PR) Tel: +44 (0)20 3757
James Crothers 4980
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.
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END
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