16 Jun 2020 15:58
16 June 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 focused explorer, Kalahari Metals Limited (“KML”), in which Metal Tiger has a 62.2% equity interest.
KML is preparing to recommence drilling at the Kitlanya East (“KIT-E”) Project by the end of June, as Botswana is now starting to gradually relax COVID-19 national lockdown restrictions. The KIT-E drilling programme, which is testing geological contacts and structures prospective for hosting copper-silver mineralisation (announced on 9 March 2020), had to be temporarily suspended on 2 April 2020 in compliance with COVID-19 related emergency legislation.
During the lockdown period, KML has taken the opportunity to re-model and interpret available data over the KIT-E property alongside the preliminary drilling results. Key findings from this assessment have refined follow-on drilling targets and shown there are many similarities with the geological setting of the neighbouring Sandfire Resources T3 and A4 deposits.
Michael McNeilly, Chief Executive Officer of Metal Tiger, commented:
“We are pleased to report that KML is planning to recommence the diamond drilling programme at their Kitlanya East Project on the Kalahari Copper Belt, by the end of the month, as the Botswana government gradually relaxes COVID-19 related lockdown restrictions.
Whilst site work had to go on hold, KML has taken the opportunity to incorporate the preliminary drilling datasets into the geophysical, remote sensing and geochemical models, updating and fine tuning the target interpretation that shows strong geological similarities with the neighbouring Sandfire Resources deposits.”
KIT-E Project Interpretation
During the Botswana lockdown period KML has incorporated the preliminary drilling data with the geophysical modelling, resulting in the following key observations:
On a regional basis, the northern anticline target in KIT-E shares many similarities with the Sandfire Resources A4 copper deposit.Modelling of the preliminary drill results with the airborne electromagnetic (‘AEM’) and magnetic data favour the development of thrust bounded local synclinal structures in more ductile lower D’Kar Formation (‘DKF’) carbonates, mudstones and siltstones, overlying a broader anticline with more competent Ngwako Pan Formation (‘NPF’) sandstone dominant sequences in the fold core.Follow-on drilling will target the margins of these structures with a view to intersecting mineralisation in a similar setting to neighbouring Sandfire Resources T3 and A4 copper deposits.Detailed remote sensing interpretation along with a review of historical soil sampling has identified further non-conventional targets which may represent thrusted anticlines of prospective lower DKF rocks providing potential trap-sites for copper mineralisation.Illustrative figures which may help visualise the information in this announcement are available to view at the following link: http://www.metaltigerplc.com/kml-update-0620.
The KML interpretation has highlighted the structural potential for the northern KIT-E Project to host similar deposits to neighbouring targets on Sandfire Resources’ licence holding, as well as more conventional anticline limb and hinge mineralisation in a similar setting to Cupric Canyon Capital’s Banana Zone deposit.
Figure 1 (A-B) illustrates the position of the KIT-E Project and the neighbouring copper deposits mentioned in this announcement.
See Figure 1: (A) Locality map illustrating the position of the Area of Interest discussed in the current announcement relative to regional license holding in the Kalahari Copper Belt, NW Botswana. First vertical derivative greyscale total magnetic intensity background. (B) Enlargement of the Area of Interest with the location of model sections, detailed AEM coverage and targets overlain.
KIT-E Project Regional Setting
Reprocessing of regional geophysical datasets illustrates interesting parallels between the Sandfire Resources A4 deposit setting and the northern margin of the KIT-E project:
Positive weathering features in the sub-cropping geology associated with fold structures along strike from both A4 and the KIT-E northern targets are clearly mapped in high resolution terrain data (Figure 2-A). This could be an indication of underlying NPF, which typically weathers positively based on outcrop/subcrop examples elsewhere in the Kalahari Copper Belt.Both A4 and the KIT-E northern targets are situated along a similar fold structure evident in the high-resolution magnetic data (Figure 2-B).Weak conductors have been delineated within the fold structures along strike from A4 and the KIT-E northern targets (Figure 2-C). These conductors are analogous to the marker conductors in the lower DKF units evidenced throughout the Kalahari Copper Belt with Banana Zone providing the most direct comparison.See Figure 2: (A) High resolution digital elevation model with fold structures of interest highlighted. Although the entire area is covered by Kalahari Group sediments, features from the sub-cropping geology are clearly apparent. (B) Heliborne magnetic data with fold structures of interest highlighted. (C) Historical AEM mid-time image with conductors along interpreted fold margins highlighted.
AEM and Magnetic Modelling
Remodelling of the detailed airborne electromagnetic data, collected over the northern portion of the KIT-E Project by New Resolution Geophysics in early 2019, has added considerable value in terms of understanding the structural setting of targets in this area. A variety of different geophysical forward modelling and inversion routines were tested, including ‘traditional plate modelling’, ‘AIRBEO controlled layered earth modelling’, ‘VPem 1D layered earth’ and ‘full 3D modelling’. The results of the modelling appear to favour a local synclinal feature developed above a broader anticline.
Magnetic modelling of selected traverses across the KIT-E northern targets appears to further corroborate the AEM interpretation. Modelled susceptibilities agree favourably with values expected for mid and lower DKF stratigraphy. Modelling implies that the T3 Deposit stratigraphy may repeat in the KIT-E northern target area and could further suggest that A4, T3 and KIT-E north would see sub-crop of the same folded lower DKF stratigraphy with each target zone connected by synclines.
Figure 3 (A-D) illustrates the results of the AEM and magnetic modelling.
See Figure 3: (A) Section line through the KIT-E northern target area illustrating different AEM modelling and inversion results. Note the trend towards a shallow – moderately dipping synclinal structure defined by weakly conductive plate and inversion results. (B) 3D View of conductivity volumes with selected plate models, looking east, no vertical exaggeration. (C) Magnetic modelling with simple tabular and polygon bodies used to approximate the interpreted structure. (D) 3D view of the magnetic modelling (looking northeast, no vertical exaggeration) with the position of the T3 anticline highlighted (top). Section with inverted AEM regional and detailed results, magnetic model outlines, interpretation and target areas highlighted (below).
Updated Target Generation
Developing targets in the northern part of the KIT-E Project cover several mineralisation settings common in the Kalahari Copper Belt. These include: traditional mineralisation along the DKF-NPF contact on anticline limbs (e.g. Cupric Canyon Capital Zone 5, Zone 5N, Zeta and Plutus deposits); fold hinge related mineralisation (e.g. Cupric Canyon NE fold deposit); and structurally controlled mineralisation in the lower DKF above NPF anticlines (e.g. Sandfire Resources’ T3 and A4 deposits).
The remainder of the drill programme will test the structural and stratigraphic position of each target and occurrence of associated Cu-Ag mineralisation.
Figures 4 (A-D) illustrates the results of the updated target interpretation modelling.
See Figure 4: (A) Targets overlain on detailed vertical derivative magnetics. Simple schematic inserts illustrate the ideal setting for Cu-Ag mineralisation. (B) Detailed structural interpretation has identified potential thrust bounded folds in lower DKF stratigraphy which may provide trap-sites for Cu-Ag mineralisation. (C) Detailed structural interpretation on ESRI remote sensing imagery. Note the correlation between priority structures and anomalous Cu results from historical partial leach samples (ppb).
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 14 February 2020, Metal Tiger holds approximately 62.2% of KML together with a conditional 2% net smelter royalty over all KML’s wholly owned licences, being seven licences covering, in aggregate, 6,650km2 (together, the “Royalties”). 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, 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 James Dance Jack Botros | 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.
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