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Metal Tiger says final CPR shows "material mineral" upgrade for its KEMCO Thai mines joint venture

Michael McNeilly, Metal Tiger’s boss said: “Utilising the significant amount of data that has been compiled by the KEMCO team since 2013, SRK has independently presented a material Mineral Resource upgrade and demonstrated the significant value of the KEMCO Project.”
Metal Tiger
He said that the key project metrics have seen material improvements since the previous study with contained metal increased by up to 25%

Metal Tiger PLC (LON:MTR) has unveiled details of the final draft Competent Persons Report (CPR) from SRK Consulting (UK) Ltd into its KEMCO Thai silver lead and zinc mines joint venture which it is looking to spin-off showing a "material" upgrade to mineral resources.

In a statement, Michael McNeilly, Metal Tiger’s chief executive officer said: “Utilising the significant amount of data that has been compiled by the KEMCO team since 2013, SRK has independently presented a material Mineral Resource upgrade and demonstrated the significant value of the KEMCO Project.”

WATCH: Zak Mir on Metal Tiger

READ: Metal Tiger receives first numbers for new Thai mines

McNeilly  added: “SRK has determined that the Project not only warrants the further technical work required to commence an optimised reopening, but holds the potential for significant Mineral Resource increases and enhancement through ongoing exploration and assessment.”

“The CPR findings and Mineral Resource upgrade have provided us with a firm base on which to further improve the Project as we work through the Thai mine permitting process and develop our knowledge to a Prefeasibility Study level.”

He said that the key project metrics have seen material improvements since the previous study with contained metal increased by up to 25%, resulting in a net 12% increase in modelled revenue and operating income up 9% to US$202.5mln despite silver prices falling to US$20 an ounce from a previously modelled US$30.

He added: “Whilst the Project NPV has fallen, against the 2013 study, to US$45.9mln, sensitivity analysis shows this is largely due to the increased provision for up-front capital cost and operating costs based on international dollar terms.”

KEMCO listing expected to occur by end third quarter 2017

The AIM-listed firm announced on March 7 that it is intended that KEMCO will raise further capital and itself seek admission to trading on the AIM market, with Metal Tiger to retain around an 80% stake in KEMCO after the listing.

The final CPR is intended to be included in the admission document in relation to KEMCO’s proposed flotation, which is expected to occur by the end of third quarter of 2017.

Earlier today, Metal Tiger also announced that it has identified more high grade copper around the edges of the planned open pit at its T3 copper project in Botswana.

READ: Metal Tiger encouraged by high grade copper indications at edge of mine at T3 in Botswana

Metal Tiger has a 30% stake in the project in the Kalahari copper belt in Botswana with Aussie-listed MOD Resources holding the remainder and the operator for the project.

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