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Botswana - T3, Substantial Maiden JORC Compliant Mineral Resource

Metal Tiger plc

Metal Tiger Plc

26 September 2016

Metal Tiger Plc

("Metal Tiger" or the "Company")

Botswana – T3, Substantial Maiden JORC Compliant Mineral Resource

Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed investor in strategic natural resource opportunities is pleased to provide an update with regard to the exploration programme at the Company’s Joint Venture (“JV”) project with partners MOD Resources (ASX:MOD) in the Kalahari Copper Belt in Botswana (70% MOD Resources / 30% Metal Tiger).

Details of the JORC compliant maiden Mineral Resource Estimate for the Target 3 (T3) Prospect, Phase 1 Resource Diamond Drilling Programme (the “Resource Programme”) are provided below.

In addition, we would refer to the announcement released today by MOD Resources which contains images and diagrams that may assist readers in an understanding of the project. This announcement can be viewed through the following link:

http://search.asx.com.au/s/search.html?query=mod&collection=asx-meta&profile=web

Paul Johnson Chief Executive Officer of Metal Tiger commented: “Together with MOD, our JV partners, we are very pleased to report the maiden Mineral Resource Estimate for our T3 Prospect.

Considering that the deposit was only discovered in March of this year, in a previously under-explored region, it is a real credit to our exploration team and contractors that we have been able to take the project from a grassroots stage, soil anomaly, to defined JORC compliant Resource in only six months.

The fact that the majority of the Resource has been classified as Indicated is especially noteworthy, with indicated resource denoting a higher degree of confidence in the geological knowledge and being necessary for the consideration of economic viability.

With the release of this Resource the project has taken a big step towards our objective of it becoming a low cost, long life Botswanan copper producer.

As the deposit remains open down-dip and along strike, where it is being targeted by current drilling, we look forward to the prospect of increasing and upgrading this initial Resource and to the results of the open-pit mining scoping study due December.

Furthermore, T3 is only the first of a series of high profile targets within the highly prospective region covered by the JV licences. There is significant likelihood of more discoveries to be made and we look forward to providing further information in this regard, in the near future.”

Highlights:

  • Total (Indicated & Inferred) Mineral Resource Estimate of 28.36Mt @ 1.24% Cu & 15.7g/t Ag for T3 Prospect, containing approximately 350,200t copper and 14.27Moz silver (at 0.5% copper cut-off grade). JORC compliant, maiden resource, resulting from the Phase 1 Resource Drilling Programme.
  • Includes high grade core of 8.48Mt @ 2.16% Cu & 30.6g/t Ag, containing approximately 182,900t copper and 8.34Moz silver (at 1.5% Cu cut-off grade), see T3 Resource Table below.
  • 64% of the total resource tonnes classified as Indicated Resource, remainder Inferred category.
  • Resource potential remains open down dip to the northeast of the current resource envelope and along strike to the south-west.
  • Mineral Resource has been defined along a 1.4km long strike length with the copper and silver sulphide mineralisation best described as a sheeted vein deposit dipping at 25 degrees to the north with a shallow north east plunge.
  • Sulphide mineralisation dominated by mainly chalcopyrite with chalcocite and bornite copper sulphides occurring in lesser amounts, is very continuous extending from shallow depth (~35m depth) to the limit of drilling at ~274m depth. Minor copper oxide mineralisation occurs near surface between ~10-25m depth as malachite and chrysocolla.
  • Geometry of the deposit, with wide zones of continuous shallow dipping mineralisation provides the potential for low-cost open-pit mining. If the deposit is mined the central core of high-grade vein hosted mineralisation may provide an opportunity for early payback of capital. The high silver content should provide significant concentrate credits.
  • Drilling is currently testing for potential extensions to high grade veins north east of the resource and targeting an IP target approximately 500m down dip from the resource. Exploration will also step out along the T3 Dome and surrounding areas to test potential for other deposits of this type.
  • T3 Phase One Mineral Resource Table:
JORC Category   Cut-off   Tonnes   Grade   Grade   Contained   Contained
  Cu%   Cu% Ag g/t Cu (tonnes) Ag (oz)
Indicated 0.5 18,071,000 1.35 16.7 244,320 9,724,550
1 10,103,000 1.84 24.2 186,198 7,848,794
  1.5 6,773,906 2.12 29.6 143,675 6,450,935
 
Inferred 0.5 10,287,000 1.03 13.7 105,853 4,546,534
1 3,162,296 1.82 26 57,396 2,640,127
  1.5 1,706,001 2.3 34.5 39,221 1,892,814
 
TOTAL 0.5 28,358,000 1.24 15.7 350,221 14,271,083
(Indicated 1 13,265,000 1.84 24.6 243,678 10,488,664
& Inferred) 1.5 8,479,907 2.16 30.6 182,912 8,343,592

T3 - MINERAL RESOURCE STATEMENT

1. Geology and Geological Interpretation

The copper and silver mineralisation which is the basis for the T3 Phase One Mineral Resource is interpreted to be a Proterozoic or early Palaeozoic age, vein related sediment hosted deposit which is different to other known deposits and mines in the central Kalahari Copper Belt in Botswana.

The Mineral Resource has been defined along a 1.4km long strike length at T3 and the copper and silver sulphide mineralisation occurs in veins and disseminations within mudstone, siltstone, sandstone and marls as host rocks.

The resource occurs in sediments and veins, considered part of the D’Kar Formation. The footwall to the resource is generally defined by lower grade disseminated Pb and Zn mineralisation within the host rocks, still considered part of the D’Kar Formation.

Mineralisation is very continuous at T3 and is dominated by mainly chalcopyrite with chalcocite and bornite copper sulphides occurring in lesser amounts. Mineralisation extends from shallow depth (~35m depth) to the limit of drilling at ~274m depth. Minor malachite and chrysocolla oxide mineralisation occurs near surface between approximately 10-25m depth.

Mineralisation can be best described as a sheeted vein deposit dipping at 25 degrees to the north. Interpretation of the drilling data has defined a shallow north east plunge. The thickness throughout the deposit may represent multiple stacked, mineralised horizons, thrusted one upon the other.

This interpretation opens up potential for resource extensions to the north east and south west, as well as at depth – down plunge. This potential for extensions to the Stage One Resource remains undrilled and is likely to be the main focus of the Stage Two extension drilling.

2. Drilling Technique

The drilling results referred to in this release were drilled by diamond core drilling rigs. HQ3 diameter drill core was drilled for all the shallow drill holes and NQ for the deeper drill holes. Triple tube drilling was used for the shallow drill holes to maximise core recovery in oxidised sediments. 15 shallow holes were drilled by Reverse Circulation method, using a 5 inch – 127mm face sampling bit diameter and 900pfm – 24 bar compressor.

3. Sampling, Sub Sampling and Analytical Techniques

Drill core is logged, split by diamond saw and sampled on site. Samples of NQ core are taken from half core and sampled at 1m lengths or less as dictated by lithological contacts, and assayed for Ag and Cu at Set Point Laboratories in Isando, Johannesburg, South Africa. Samples of HQ3 core are taken from quarter core samples and sent for analysis.

Standards, blanks and duplicates are inserted into the sample stream. The remaining half portion of drill core is retained on site at MOD’s core logging facility in Ghanzi, Botswana.

Samples arriving at the laboratory are crushed using a jaw crusher to a particle size less than 15 mm and then crushed to a fineness of 80% less than 2.0mm. The split for analysis is milled to achieve a fineness of 90% less than 106 µm.

Analytical techniques have been chosen to best characterise total and non-sulphide copper and silver mineralisation. Analysis for acid soluble Copper was by method M449 and determined by sulphuric acid leach followed by ICP-OES (Inductively Coupled Plasma – Optical Emission Spectrometry) finish. Analysis for total Silver and Copper is determined by 3 acid digest (HNO3, HClO4 and HCl) followed by ICP-OES finish.

4. Resource criteria and assumptions

The resource estimate was classified in accordance with the Australasian Code for Reporting of Exploration results, Mineral Resources and Ore Reserves (JORC Code, 2012).

Geological interpretation was based on drill hole lithology and grade data which was completed on 15 cross-sections using Datamine software. 3D (wireframe) geological modelling was carried out by Sphynx Consulting CC (‘Sphynx’) and reviewed by MOD Resources. Sphynx produced resource tables at a copper cut-off grade of 0.5% Cu, see T3 Phase One Mineral Resource Table above.

The Mineral Resource Estimate was based on a number of factors and assumptions:

  • A review of the QAQC data was completed and considered satisfactory for Inferred and Indicated Resources.
  • Mineralisation was defined by zones identified from downhole lithological and analytical data.
  • Grade domaining was applied by constructing hard boundaries at 0.5% Cu and 1.0% Cu respectively.
  • Using parameters derived from modelled variograms, Ordinary Kriging (OK) was used to estimate average block grades for Cu and Ag.
  • The estimation was conducted in three passes with the search radius increasing for each pass.
  • The model was validated visually and statistically using comparison to sample statistics.
  • Bulk densities were assigned to mineralised domains. The dry bulk densities were based on immersion measurements from 369 core samples. A median bulk density of 2.75 t/m3 was used.
  • The relative accuracy is reflected in the resource classification that is in line with industry acceptable standards. It is a maiden global mineral resource estimate with no production data.
  • This Resource is a maiden mineral resource estimate.

5. Resource Classification and Drill Hole Spacing

The classification of Mineral Resources was completed based on the geological complexity, estimation performance, number of drill samples, drill hole spacing and sample distribution. The Competent Person is satisfied that the result appropriately reflects his view of the deposit. Continuous zones meeting the following criteria were used to define the resource class:

Indicated Resource

  • Drill hole spacing up to approximately 100m by 100m
  • Estimation performance: Weighted average between 1.4 and below.

Inferred Resource

  • Drill hole spacing wider than 100m by 100m
  • Estimation performance: Weighted average above 1.4
  • Blocks estimated in the third pass
  • Limited number of drill holes

6. Cut-off Grades

The resource model is constrained by assumptions about economic cut-off grades. The mineralisation is constrained by a 0.5 % Cu cut-off and 1.0% Cu cut-off and a 1.5% cut-off. Tabulated resources are based on cut-off grade starting at 0.5 % Cu.

7. Mining and Metallurgical Parameters and Assumptions

The joint venture is proceeding with a scoping study to evaluate open pit mining options, metallurgical parameters and potential on-site processing at T3.

The scoping study includes preliminary open pit modelling based on the T3 Phase 1 Mineral Resource estimates and models.

The scoping study also includes metallurgical testwork of three separate ore types being bornite, chalcopyrite and chalcocite sulphides. Test work is being conducted on drill core samples by Independent Metallurgical Operations in Perth and results will be released when they are finalised.

Further Information

Further details of the exploration procedures employed during the Resource programme including a completed JORC 2012 Table 1, a drill plan and drill collar table can be viewed in the MOD Resources news release dated 26 September 2016.

Mineral Resource Estimate Competent Persons

The Mineral Resource estimation and classification of the T3 Copper/Silver Project was conducted and approved by Mr A.I. Pretorius, MSc. Pri.Sci.Nat. Mr Pretorius is an independent consultant to MOD Resources Ltd and a member of the South African Council for Scientific Professionals (SACNASP Membership Number 400060/91). Mr Pretorius has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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’.

The T3 Prospect geological data and exploration results have been reviewed and approved by Jacques Janse van Rensburg, BSc (Hons), Technical Adviser and Competent Person for MOD Resources Ltd.

Location

The T3 Prospect 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 approximately 70km NE of the project’s Tshimologo (T4) Prospect and is located parallel to the same structural trend known as the Mahumo Structural Corridor, that hosts MOD’s Mahumo Project (circa 20km NE of T3) and Cupric Capitals’ Banana Zone Deposit (60km NE) and Zone 5 Project (120km NE).

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 meets the criteria of a qualified 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 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:

Paul Johnson (Chief Executive Officer)     Tel: +44 (0)7766 465 617
Terry Grammer (Non- Executive Chairman) Tel: +44 (0)207 099 0738
Sean Wyndham-Quin

Neil Baldwin

Nick Emerson

Andy Thacker

Spark Advisory Partners Limited

(Nominated Adviser)

SI Capital

(Sole Broker)

Tel: +44 (0) 2033 683 555

 

www.sparkadvisorypartners.com

Tel: +44 (0) 1483 413 500

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 precious and strategic metals focus.

The Company’s target is to deliver a very high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector timed to coincide, where possible, with a cyclical recovery in the exploration and mining markets. The Company’s key strategic objective is to ensure the distribution to shareholders of major returns achieved from disposals.

Metal Tiger’s Metal 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 Metal Tiger the Company has tungsten and gold interests in the highly mineralised Extremadura region. In Thailand Metal Tiger has expanding interests over licences, applications and critical historical data covering antimony, copper, gold, silver, lead and zinc opportunities.

The Company has access to a diverse pipeline of new opportunities focused on the natural resource sector including physical resource projects, new natural resource centred technologies and resource sector related fintech opportunities. Pipeline projects deemed commercially viable may be undertaken by Metal Tiger or by an ISDX or AIM partner with whom the Company is engaged.

Metal Tiger also has an Asset Trading Division that holds various financial instruments for trading purposes including equities, warrants and royalty income. The aim of the division is to generate profits to reinvest into the Company’s project based activities.

Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.

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