19 Apr 2021 07:00
19 April 2021
Metal Tiger plc
("Metal Tiger" or the "Company")
Kalahari Metals Limited: Major Drilling Programme Approved by Joint Venture Board
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 discovery focussed explorer, Kalahari Metals Limited (“KML”). As of this date, Metal Tiger holds a 50.01% interest in KML1 with Australian listed Cobre Limited (“Cobre”) holding the remainder of the shareholding, as announced 12 April 2021.
Highlights:
Total of 5,700m of diamond core drilling and reverse circulation drilling approved by Joint Venture BoardAdditional 1,300m available for optional follow-up diamond drilling dependant on resultsDrilling to focus on Kitlanya East and Kitlanya West projectsKitlanya East drilling to target both North and South targetsDrilling expected to commence early May at Kitlanya EastMetal Tiger is pleased to announce that the joint venture (“JV”) board of KML has approved a major new drilling programme focussed on compelling conductive geophysics and structural targets that are considered prospective for the discovery of copper/silver deposits on the Kalahari Copper Belt (“KCB”). The KML technical team has also been supplemented with additional members experienced in sediment-hosted copper and drill programme management as the project now moves into the next stage of exploration.
KML holds prospective ground in close vicinity to major copper deposits and mining infrastructure including Sandfire Resources’ T3 (Motheo) Copper-Silver Project which is scheduled for open-pit mine construction in 20212 and Cupric Canyon Capital’s Khoemacau Copper Project which is targeting 60ktpa copper and 2Mozpa silver underground mine production following the 2021 commissioning3.
Following the completion of a comprehensive review of KML’s exploration work to date, which includes airborne electromagnetic (“AEM”) and magnetic surveys with geophysical inversion modelling and detailed structural analysis, supported by soil geochemical sampling and stratigraphic drilling, a JV decision has been made to embark on a 7,000m drilling programme.
The drilling programme consists a planned combined total of 5,700m of diamond core drilling and reverse circulation (“RC”) drilling with an additional 1,300m available for optional follow-up diamond drilling depending on results. The drilling will focus on two of KML’s four project areas, namely Kitlanya East Project (“Kit-East”) and Kitlanya West Project (“Kit-West”), as set out in Table 1 and in the images linked below.
Discovery Drilling (Pty) Ltd (“Discovery Drilling”), an experienced drilling contractor, has been awarded the contract and drilling rigs will be mobilised to commence drilling at Kit-East, expected the first week of May.
Michael McNeilly, Chief Executive Officer of Metal Tiger, commented:
“We are delighted to report the approval of a major new drilling programme focussed on leading the joint venture to the discovery of new copper/silver deposits in close vicinity to mine infrastructure under construction and commissioning on the Kalahari Copper Belt.
At the inaugural JV meeting between KML‘s new technical team, comprising representatives from Metal Tiger and its new partner, Cobre, it was agreed to approve a 7,000m drilling programme, consisting of both diamond and RC drilling focussed on compelling structural and conductive targets.
With experienced drilling contractor, Discovery Drilling, preparing to mobilise drilling rigs to site at the end of this month, KML is embarking on an exciting new phase of work.
We are hopeful that the hard work and diligent studies that the KML technical team have put into the exploration and drill targeting to date will bear fruit. We look forward to updating shareholder when drilling commences at Kit-W where we are very excited to put some drill holes into the A4-analogues at the Kit-W project, as well as the southern fold target at Kit-E. Neither of these areas have been historically drill tested.
We look forward to providing further updates as the drilling commences.”
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’s website at: https://www.metaltigerplc.com/kml-update-drilling
Table 1: KML Planned Drill Programme
Project /Target | Drilling Planned | Target Rationale |
Kit-East / North Target | 12 x RC (2,400m)
| Located less than 25km southeast of the Sandfire Resources T3 (53.3 Mt at 0.9 % Cu and 12.7 g/t Ag) and A4 (6.5Mt at 1.5% Cu and 24g/t Ag) copper/silver deposits2 and approximately 25km southwest of the Khoemacau Copper Project Banana Zone deposit (155 Mt @ 0.85% Cu 11 g/t Ag) 3. Focussed on testing for mineralisation associated with structural trap-sites analogous to the setting of T3 and A4 deposits (Figure 4). Prospective D’Kar Formation geology with potential for the development of reduction–oxidation (“redox”) contacts and related mineralisation. Structural targets include fold / shear potential mineral fluid trap sites identified from detailed magnetic and AEM layered earth inversion modelling (Figure 5), remote sensing studies and with Cu / Zn soil geochemical anomalies. Further drilling supported by the findings of the 2020 stratigraphic drilling programme. |
Kit-East / South Target
See Figure 2 | 2 x DDH (800m) 8 RC (1,600m) | |
Kit-West
See Figure 3 | 2 x DDH (900m) Optional 3 x DDH follow-up (~1,300m) | AEM conductive targets associated with soil anomalies and fold structures. Potential for traditional fold limb, redox targets as well as fold hinge and structurally controlled targets above the traditional contact. Interpreted Kgwebe Formation geology and position on the northern margin of the KCB considered encouraging vectors for deposits. AEM conductor targets developed upon local anticlines within a broad synclinal structure supported by coincident Cu / Zn soil geochemical survey anomalies. Anomalies have a similar geophysical response (in terms of geological setting, conductivity, geometry, and scale) to the Sandfire T3, A4 and A1 targets. KML note the similarities between the structural setting of Kit-West and Sandfire’s A4 deposit where high-grade drilling intercepts up to 33.0m @ 4.6% Cu & 74.3 g/t Ag from 109m down-hole were reported in December 20204. See Figure 6. |
Given the early stage exploratory nature of most of the planned drilling, the planned holes will be reviewed and potentially modified as the programme progresses and as new data becomes available.
KML Technical Team
The KML technical team will provide oversight on the next phase of drill-focused exploration and includes sediment-hosted copper specialists along with exploration project management experience. The technical team members consists of:
Adam Wooldridge is a geophysicist and geologist with over 20 years’ experience in Africa and Europe. In addition to several project generation initiatives, he has worked as a consultant on a variety of commodity-types specialising in large-scale multi-disciplinary target generation. He was a founding partner and executive director for Kalahari Metals and has managed exploration activities to present. He is a registered Professional Scientist (SACNASP) and Member of the Australian Society of Exploration Geophysicists.Dave Catterall is a geologist with over 36 years’ operational and field-based experience in mineral exploration throughout Africa and Europe in a wide range of commodities but specialising in structurally controlled precious and base metals deposits. He has worked extensively on the Congo-Zambia Copperbelt and Kalahari Copper Belt, both in Namibia and Botswana having gained first-hand experience on several of the known deposits of Boseto and Zone 5 along with belt-scale expertise. He is a Registered Professional Geologist, Chartered Engineer, Fellow of the Geological Society of London and Fellow of the Society of Economic Geologists.Dr Ross McGowan is the founder of the Resource Exploration & Development Group (“RED”) and has been involved corporately, technically and academically with the mining industry in Africa for over 20 years. He was a member of the original Kamoa (DRC) discovery team, with Ivanhoe Mines, and is a co-recipient of the 2015 PDAC Thayer Lindsley Award for an international Mineral Discovery. He conducted his PhD research on the sediment-hosted copper deposits of the Zambian Copperbelt and is a Fellow of the Geological Society of London and a Fellow of the Society of Economic Geologists.Thomas Rogers is the lead generative geologist for RED with over 20 years’ of operational multi-commodity experience across Africa and was also part of the team that generated the Kitlanya East and West project areas prior to their acquisition by Kalahari Metals. He was a member of the original Kamoa (DRC) discovery team, with Ivanhoe Mines, and is a co-recipient of the 2015 PDAC Thayer Lindsley Award for an international Mineral Discovery. He is a Member of the Geological Society of South Africa and Society of Economic Geologists.Dr. Wesley Hall is the owner and principal geologist of High-Grade Geological Consulting Services Ltd. and brings nearly 15 years of mineral exploration experience that spans several commodities and deposit classes across the globe. He specialises in basin-hosted mineral systems with emphasis on tectonics and basin development, basin analysis and sequence stratigraphy, and geophysical data interpretation. He is considered an expert on the sedimentary rock-hosted copper-silver deposits of the Kalahari Copperbelt in Botswana and Namibia having completed M.Sc. and Ph.D. studies and publishing several papers related to the metallogenic belt. He is a Certified Professional Geologist (CPG) through the American Institute of Professional Geologists, and a member of the Geological Society of America and the Society of Economic Geologists.References notes:
1: Metal Tiger RNS announcement, 12 April 2021: https://polaris.brighterir.com/public/metal_tiger/news/rns/story/x5d070w
2: Sandfire Resources Ltd ASX Announcement, 1 December 2020: https://www.sandfire.com.au/site/PDF/3093a8b4-14b7-41fc-afea-27c0c8dc492c/SandfireApprovesDevelopmentofnewLonglifeCopperMine
3: Khoemacau Copper Mining corporate presentation, 31 January 2021: https://www.khoemacau.com/
4: Metal Tiger RNS announcement, 1 December 2020: https://polaris.brighterir.com/public/metal_tiger/news/rns/story/xlq2e7w
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 8,595km2 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.
As announced on 15 December 2020, KML signed a Share Purchase Agreement with 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 in KML (comprising a 49% direct interest and a 20.72% interest in Cobre, which, in turn, will have a 51% interest in KML) (the “Cobre Transaction”).
The completion of Cobre’s purchase of 49.99% of KML occurred on 12 April 2021, resulting in Metal Tiger holding a 50.01% interest in KML. As announced on 15 December 2020, subject to obtaining change in control approval from the Minister of Mineral Energy and Water Resources of the Republic of Botswana (the “Botswana Consent”) in respect of the KML group, Metal Tiger’s shareholding in KML will reduce to 49.00%.
Metal Tiger holds a 2% net smelter royalty over all KML’s wholly owned licences, being seven licences covering, in aggregate, 6,650km2 (together, the “Royalties”) and the main areas. 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.
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) |
|
James Dance Georgia Langoulant | Strand Hanson Limited (Nominated Adviser) | Tel +44 (0)20 7409 3494 |
Paul Shackleton Steve Douglas | Arden Partners plc (Broker) | Tel: +44 (0)20 7614 5900 |
Gordon Poole James Crothers Hugo Liddy | Camarco (Financial PR) | Tel: +44 (0)20 3757 4980 |
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/20210418005012/en/
Copyright Business Wire 2021