MTR.L Regulatory News (MTR)

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 P80 = 212µm (P80 = 106µm 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 25km2 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: 

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 km2), 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 16th 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.