29 Jul 2019 12:12
Metal Tiger plc
("Metal Tiger" or the "Company")
Pan Asia Metals – Reung Kiet Lithium Project Drilling and Trenching Results
Metal Tiger plc (LON:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, is pleased to announce drilling and trenching results for the Pan Asia Metals Ltd (“PAM”) Reung Kiet Lithium Project (“RKLP”), Thailand. PAM is a privately owned South East Asian focused metals exploration and development company with a current focus on lithium and tungsten. Metal Tiger currently holds a 8.29 per cent interest in PAM, having been diluted down following a recent issue of ordinary shares in PAM.
Highlights
PAM maiden drill programme of five diamond core drill holes completed at RKLP, with 587.5m drilled.All five holes intersected the targeted main pegmatite zone, with notable downhole intersections including:Hole RKDD0016.3m @ 0.65% Li 2O from 66m; and5.8m @ 0.73% Li 2O from 80m.Hole RKDD00215.6m @ 0.82% Li 2O from 55m, including9m @ 1.00% Li 2O.Mineralised zones are open north of hole RKDD001 at the northern end of the old pit.Nine trenches completed, for a total 307m, with trenching identifying a large open-ended lepidolite rich pegmatite dyke swarm, up to 100m wide, to the south of an historical open pit.Trenching at Reung Kiet (“RK”) South has yielded 90 samples averaging 1.41% Li2O and 20 outcrop and float samples averaging 1.58% Li2O.Accessory tin and tantalum present in all samples with elevated lithium.Michael McNeilly, Chief Executive Officer of Metal Tiger, commented:
“We are delighted to receive the results from PAM’s inaugural drilling programme at their Reung Kiet Lithium Project in Thailand. The results confirm wide intersections of lepidolite hosting pegmatite below the shallow historical open pit, with trenching and outcrop sampling work currently demonstrating open-ended potential to extend the deposit along strike to the south west of the old pit. The work to date has resulted in an open-ended mineralised strike of approximately 1km being identified.
We look forward to supporting PAM as it continues to push the project forward and will announce further updates in due course.
A version of this release complete with location figures and sections is available via the Metal Tiger website (www.metaltigerplc.com).
Reung Kiet Lithium Project Drill Programme Details
PAM completed five diamond core holes (RKDD001-005) for a total of 587.5m. The drilling was designed to test for lithium mineralised pegmatites below the historical RK open pit. All holes intersected the Main Pegmatite Zone over downhole widths of generally 10 - 40m. Several narrow pegmatite dykes, 1-2m wide, were also intersected and are mostly associated with the East Zone and contain higher Li2O grades.
The drilling results are set out in Table 1 below. The assay results indicate that moderate to low grade lithium is present in much of the pegmatites, especially those with visible lepidolite. Accessory tin and tantalum is also present. Generally, the shallower holes (RKDD001-003) contain higher grades of lithium compared to the deeper holes (RKDD004-005).
Table 1: Diamond Drilling Results
Hole ID | From (m) | To (m) | Interval# | Li2O (%) | Sn (%) | Ta2O5 (ppm) |
RKDD001 | 36.40 | 37.60 | 1.20 | 1.08 | 0.09 | 98 |
RKDD001 | 66.15 | 72.40 | 6.25 | 0.65 | 0.09 | 93 |
RKDD001 | 79.70 | 85.50 | 5.80 | 0.73 | 0.08 | 115 |
incl. | 81.70 | 82.70 | 1.00 | 1.02 | 0.08 | 123 |
and | 84.70 | 85.50 | 0.80 | 1.21 | 0.06 | 173 |
RKDD002 | 44.00 | 44.70 | 0.70 | 1.15 | 0.08 | 101 |
RKDD002 | 55.00 | 71.60 | 15.60 | 0.82 | 0.07 | 100 |
incl. | 61.00 | 70.00 | 9.00 | 1.00 | 0.07 | 103 |
RKDD003 | 33.00 | 41.00 | 8.00 | 0.35 | 0.05 | 88 |
RKDD003 | 33.00 | 37.90 | 4.90 | 0.37 | 0.05 | 83 |
RKDD003 | 38.40 | 41.00 | 2.60 | 0.37 | 0.05 | 95 |
RKDD004 | 32.20 | 34.00 | 1.80 | 1.00 | 0.05 | 98 |
RKDD004 | 56.70 | 59.70 | 3.00 | 0.78 | 0.11 | 109 |
RKDD004 | 84.20 | 85.10 | 0.90 | 0.26 | 0.02 | 88 |
RKDD004 | 142.85 | 143.55 | 0.70 | 0.67 | 0.04 | 105 |
RKDD005 | 135.10 | 138.80 | 3.70 | 0.41 | 0.10 | 102 |
RKDD005 | 151.10 | 153.10 | 2.00 | 0.30 | 0.06 | 98 |
RKDD005 | 158.10 | 161.10 | 3.00 | 0.49 | 0.07 | 121 |
RKDD005 | 165.10 | 167.10 | 2.00 | 0.52 | 0.05 | 90 |
Note: # intersection intervals are weighted averages calculated using a 0.2% Li2O lower cut-off and allowing for one sample of internal dilution of 2O, internal higher grade zones are generally > 0.7% Li2O cut-off. The estimated true widths are generally around 65-75% of the downhole intersections.
All drill holes were either HQ3 or NQ3 sized core. The sampled core was sawn in half, with one half sent for analysis and the other retained. Some quarter core samples were taken for QA/QC purposes. Sample preparation was undertaken by ALS Chemex in Laos. Lithium analysis was performed by ALS Chemex in Vancouver with additional QA/QC work undertaken at ALS Chemex in Perth. Analysis for Sn and Ta2O5 and other elements was completed using PAM’s handheld X-Ray fluorescence spectrometer (“XRF”).
PAM management believes that the drilling results reported contrast sharply with the trenching results to the south of the historical pit where considerably higher Li2O grades were achieved. This may suggest that there is some geological zoning or other controls on lithium grades in the pegmatites.
Reung Kiet Lithium Project Trenching Details
A total of 307m of trenching for 9 trenches were excavated at RK. The trenches ranged in length from 10m to 94m long and were generally 2-3m deep. Lepidolite rich pegmatites were found to occur in the lower walls, extending to floors of the trenches. The pegmatites dip from about 20-45 degrees to the southeast and are commonly interleaved with beds of weathered mudstone. Sub-horizontal zones of pegmatite occur as sub-soil creep on slopes.
Mostly horizontal channel-chip sampling of pegmatite in the trench walls was undertaken. Some vertical sampling was also completed as well as sampling of some pegmatite in the trench floor. In total 92 samples were collected from the 9 trenches, representing about 130m; the average sample width is 1.45m, generally ranging from 1-2m. Sampling was performed using the channel-chip method, with an average sample mass of about 1.9kg. Sample preparation and analysis utilized methods as outlined for the drilling samples.
A summary of trench results is shown in Table 2 below.
Table 2: Trenching Results
Trench ID | Length (m) | Composite Pegmatite Width (m) | No. of Samples | Li2O (%) | Sn (%) | Ta2O5 (ppm) |
RKTR01 | 26 | 6 | 8 | 1.62 | 0.04 | 145 |
RKTR02 | 11 | 4 | 5 | 1.42 | 0.04 | 116 |
RKTR03 | 24 | 3 | 13 | 1.45 | 0.04 | 126 |
RKTR04 | 42 | 9.5 | 11 | 1.29 | 0.04 | 127 |
RKTR05 | 28 | 1.6 | 1 | 0.72 | 0.04 | 155 |
RKTR06 | 10 | 1.5 | 1 | 0.60 | 0.02 | 129 |
RKTR07 | 40 | float cobbles | 1 | 1.66 | 0.06 | 111 |
RKTR08 | 30 | 23 | 27 | 1.33 | 0.04 | 145 |
RKTR09 | 94 | 18 | 25 | 1.42 | 0.04 | 131 |
Note: The assay results reported are weighted averages (sample width x grade) of every sample in each trench. The composite pegmatite widths are horizontal widths. True widths are estimated to be 35-50% of the reported horizontal width.
Trenches RKTR08 and RKTR09 are the most instructive in that combined they cover the entire width of the soil anomaly from the Main Pegmatite Zone to the East Zone. The remainder of the trenches only cover a portion of the total zone. Trenches RKTR08 and RKTR09 intersected numerous pegmatite dykes and veins across a near 100m wide swarm. Detailed sampling indicates, that from the 52 samples collected from RKTR08 and RKTR09, 50 samples are >0.5% Li2O with an average grade of 1.41% Li2O.
Reung Kiet Lithium Project – Rock Chip Sampling
Detailed mapping and channel sampling of lepidolite rich dykes and veins was conducted at the most southern exposure of the mineralisation at RK South. Previous excavation has exposed a near vertical NW trending face from 3-10m high. Within this face occurs a swarm of lepidolite rich pegmatite dykes and veins. Nearly all dykes strike to the north-east and dip around 30 degrees to the south-east. Individual dykes are up to 2m wide. A total of 9 channel-chip samples were collected from the pegmatite dykes and some of the narrower veins occurring in the face. The composite width of mineralised pegmatite in the face is about 12m. The average grade of these samples is 1.56% Li2O.
Additional rock-chip and float sampling was also undertaken at RK South, generally to the west of and in between the trenches. A total of 14 samples were collected, returning average grades of 1.50% Li2O. All rock-chip sampling results support and enhance previous reconnaissance sampling by PAM.
The latest results and observations indicate a plus 1km long mineralised pegmatite trend which remains open to the north and south. The lower grades intersected in drilling as compared to the higher grades at RK South (trenching and rock-chips) potentially indicate some type of mineralogical and/or grade zoning in the pegmatite. Additional drilling is required to close off or extend mineralisation at the northern end of the pit, as well as drilling to explore south of the old pit extending all the way beneath the RK South dyke swarm.
Background on Reung Kiet Lithium Project
The RKLP is situated within the South East Asian Tin and Tungsten Belt, and is located about 50km north-east of Phuket in the Phang Nga Province, southern Thailand. Pan Asia holds a 100% interest in six Prospecting Licence Applications covering about 75km2.
The area of investigation was a major tin mining district up until the 1980s. In the late 1960s a joint Thai/British Geological Survey study was undertaken in the region. It was during this study that the lithium bearing mica lepidolite was identified in pegmatites being mined for tin at the Reung Kiet open pit mine. This lepidolite was found to contain 3-4% Li2O. PAM considers that the project may have the potential to be positioned at or near the bottom of the cost curve for the production of lithium carbonate.
RKLP has two key prospects with a combined strike length based on pits, exposures and rock chips, of approximately 2.5km.
The RKLP includes a historical pegmatite tin mine, where weathered pegmatite was reportedly worked using hydraulic monitors, until the limit of weathering where the ground became too hard at around 30m depth. The resulting historical pit measures around 450m long by 140m at its widest point with the pegmatite body around 20m wide in the pit bottom.
Investigations have shown the pegmatite to be lithium bearing, with lepidolite mica thought to be evenly distributed throughout the pegmatite.
PAM's surface work to date has produced average rock chip grades of 1.54% Li2O, with good tin and tantalum credits. Both prospects are drill ready, with drilling contracts agreed. Previous mining and independent reports at RKLP indicate excellent potential to discover significant lithium resources.
Competent Persons Statement
The information in this release that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr David Hobby, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Hobby is a Director, employee and shareholder of Pan Asia Metals Limited. Mr Hobby has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr Hobby consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Background on Pan Asia Metals Ltd
PAM is a Singapore registered specialty metals exploration and development company focused on the exploration and development of specialty and base metal projects in South East Asia. PAM has four wholly owned projects; Reung Kiet Lithium Project ("RKLP"); Khao Soon Tungsten Project ("KSTP"); Bang Now Lithium Project (“BNLP”); and the Minter Tungsten Project (“MTP”). The RKLP, KSTP and BNLP are located in southern Thailand, whilst the MTP is located in the Lachlan Fold Belt, NSW, Australia.
PAM’s stated strategy is to initially generate sufficient resources to feed a 10,000tpa Lithium Carbonate Plant for 10 years.
Metal Tiger plc holds 7,626,447 ordinary shares in PAM, representing 8.29% of the issued share capital.
For more information on Pan Asia Metals Limited please visit their website www.panasiametals.com.
ENDS
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 is a Principal consultant working for Mining Analyst Consulting Ltd, which has been retained by Metal Tiger to provide technical support.
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) | |
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Richard Tulloch James Dance Jack Botros | Strand Hanson Limited (Nominated Adviser) | Tel +44 (0)20 7409 3494 |
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Nick Emerson | SI Capital (Broker) | Tel: +44 (0)1483 413 500 |
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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, 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.
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