MTR.L Regulatory News (MTR)

7 May 2019 09:23

Metal Tiger PLC

(“Metal Tiger” or the “Company”)

Botswana Copper/Silver Project – T3 Project & Regional Exploration Programme Plan

Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, is pleased to provide an update on planned exploration work for the licence areas held in joint venture (“JV”) with MOD Resources Limited (“MOD”) (30% Metal Tiger: 70% MOD) and for the 100% MOD held T3 Copper Project (“T3”), in the Kalahari Copper Belt, Botswana.

The planned work programmes are part of a proposed wider growth strategy to add substantial value by systematically building mineral resources in potential T3 satellite deposits, with the aim of building a pipeline of satellite mines to leverage planned T3 infrastructure and provide increased and supplementary production throughput to the planned T3 Processing Plant. MOD and their advisers continue to advance a range of funding options towards a decision to mine T3, with interested parties.

Planned high priority work targets include: T20 Exploration Project (JV held), staged reverse circulation (“RC”) drilling and diamond core (“DD”) drilling at T23 Dome, 100km west of T3. Follow-up drilling, nine RC and four DD holes, along 4km of T23 Dome, commencing early May 2019; T3 Expansion Project (JV held) A4 Prospect, on 5km long A4 Dome, located 8km from T3. Staged drilling, six RC and one DD holes, planned to build out from hole MO-A4-003D, which intersected 52m @ 1.5% Cu & 14g/t Ag from 232m, including 15.5m @ 2.9% Cu & 42g/t Ag from 269m (announced on 6 August 2018), with the aim of preliminary JORC Resource definition in second half of 2019. Numerous potential drilling targets identified within 25km radius of planned T3 Open-Pit Processing Plant, from geophysical and geochemical survey anomalies; and T3 Copper Project (100% MOD held) Resource drilling for T3 Underground Project (below planned open-pit). Initial 16 DD holes, followed by further infill drilling, planned for JORC Resource definition, with work expected to commence early June 2019.

Further information on the planned work by target is detailed below.

Michael McNeilly, Chief Executive Officer of Metal Tiger, commented:

“We are pleased to report the JV strategy to seek to add further value at T3 and our wider holdings in the Kalahari Copper Belt in Botswana. It is anticipated that this will be achieved through the planned exploration work as we seek to discover new copper deposits as well as through the delineation of additional JORC Resources from known prospects which offer the potential to provide throughput to the planned T3 Open-Pit Processing Plant.

We believe that further resource definition around the T3 project, as per today’s announced work programme, is an easy and low-risk opportunity to increase the value of Metal Tiger’s portfolio of assets in the Kalahari Copper Belt.”

This announcement coincides with an update released today by MOD which can be viewed through the following link: https://www.asx.com.au/asx/share-price-research/company/MOD

T20 Exploration Project Programme

The T20 Exploration Project covers an area of approximately 3,350km2, within the approximately 200km long, Central Structural Corridor that hosts T3 as well as the T23 Dome and A4 Domes.

T23 Dome (JV held)

The T23 Dome is an approximately 15km long structural feature which is interpreted, from airborne electromagnetic (EM) geophysics data, to link (from east to west) the T4 Prospect, T4 West and the T23 Prospect. At the T4 Prospect, RC drilling in February 2016 intersected 2m @ 6.1% Cu and 111 g/t Ag from 101m depth, before activities were put on hold in order to focus on T3.

Planned work consists of:

T23 Prospect drilling planned to commence in May 2019, with nine wide spaced RC holes and four DD holes, following-up shallow copper and silver mineralisation intersected in three previous holes (announced on 21 November 2018 and 10 December 2018) and testing a 4km, thus far undrilled, strike length. Where the proposed T23 Prospect re-drilling is successful, it is planned to extend the drilling eastwards to the T4 West target approximately 7km east of T23. T4 West shows similar geophysical signatures to the T4 Prospect and is located intermediately between the T23 and T4 prospects.

T3 Expansion Programmes

A4 Dome (JV held)

A4 Dome is a structural formation located 8km from the planned T3 Open-Pit and the proposed Processing Plant, within the T3 Expansion Project area.

The A4 Dome drilling programme commenced in June 2018, the third hole MO-A4-003D intersected 52m @ 1.5% Cu & 14g/t Ag from 232m, including 15.5m @ 2.9% Cu & 42g/t Ag from 269m (announced on 6 August 2018). At the end of 2018, a total of 20 DD holes had been drilled with 18 of the 20 holes intersecting both vein hosted and Ngwako Pan Formation (“NPF”) copper mineralisation.

The Proposed A4 Dome drilling programme, which is expected to start during the second half of 2019, will seek to test for the widespread NPF contact mineralisation below the A4 Dome.

Planned work includes:

Six shallow RC holes to follow-up shallow vein hosted mineralisation in hole MO-A4-019D (announced on 20 December 2018); and One deep DD hole to follow-up the high-grade vein hosted mineralisation intersected in holes MO-A4-003D and MO-A4-008D (announced on 20 December 2018).

If successful, it is expected that a further drilling programme would follow-on with the objective of delineating a maiden JORC Resource on the A4 Dome. Given the proximity to T3, it is envisaged that such a JORC Resource could potentially feed into the planned T3 Processing Plant.

T3 Underground Project (100% MOD held)

The T3 Underground Project is targeting the high-grade vein hosted copper potential interpreted to extend immediately below and down-dip of the planned T3 Open Pit.

Work will follow on from the completion of the T3 Resource infill drilling, expected to commence in early June 2019.

Planned drilling work will follow-on from numerous high-grade drill intersections (announced on 5 January 2018 and 24 May 2018) and will be undertaken in two phases:

Phase 1: 16 DD holes to delineate further high-grade copper and silver mineralisation in the T3 Underground Target Area; and Phase 2: Infill drilling to enable a Mineral Resource Estimate during second half 2019.

T3 Expansion Project wider area (JV held)

In addition to the A4 Dome and T3 Underground Project there are numerous regional, potentially shallow, individual drill targets, based on interpretation of both previous airborne EM geophysics and soil geochemical surveys. These targets represent further, future, potential within the JV held T3 Expansion Project Area covered by licences PL189/2008, PL190/2008, PL074/2017 and PL189/2008.

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 and 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 to provide technical support.

The Company currently holds 31,838,393 MOD ordinary shares, representing approximately 10.48% of MOD’s issued share capital; 40,673,566 unquoted options with a nil exercise price expiring on 15 November 2021; and 154,167 options over MOD ordinary shares, each exercisable at AU$0.60 per MOD ordinary share on or before 15 April 2019. In addition, Metal Tiger holds a 30% interest in Tshukudu Exploration (Pty) Ltd, via Metal Capital Exploration Limited, with MOD holding the remaining 70%. For further information on this JV, please see the Company’s announcements of 18 July 2018 and 16 November 2018.

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)
Richard Tulloch James Dance Jack Botros		Strand Hanson Limited (Nominated Adviser)		Tel +44 (0)20 7409 3494
Nick Emerson		SI Capital (Broker)		Tel: +44 (0)1483 413 500
Gordon Poole James Crothers Monique Perks		Camarco (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 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, through its 10.48% interest in MOD Resources Limited and related JV, and its 50% interest in Kalahari Metals Limited, 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 a Copper/Silver Project. T3 is located within the central part of the T3 Dome Complex (approximately 1,000km2), which is the focus of rapidly increasing exploration activity undertaken by MOD. Two significant resources have been discovered to date within the T3 Dome: T1 (Mahumo deposit - 100% MOD) and T3 (100% MOD).

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 Estimate 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 Phase 2 drilling at the T3 Copper/Silver Deposit commenced on 7 August 2017, with approval granted for the recommencement of both diamond core (“DC”) and RC drilling at the T3 Project and its vicinity, through to December 2018 (which has subsequently been extended to December 2020). This included 90 DC drill holes designed to infill the Resource and test for possible extensions. The objective of the infill programme 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 31 January 2018; the revised and upgraded T3 Copper/Silver Deposit Mineral Resource Estimate was announced on 2 July 2018; a Resource re-classification announced on 16 July 2018; an Ore Reserve upgrade on 25 March 2019; and the results of the T3 Open Pit Feasibility study were announced on 28 March 2019.

Outside of the T3 Project licence area, Tshukudu Exploration, the Metal Tiger (30%) and MOD (70%) joint venture, continues to conduct regional exploration on the highly prospective Kalahari Copper Belt.

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