Metal Tiger Plc (LON:MTR)

Metal Tiger Plc (LON:MTR)


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Metal Tiger Plc RNS Release

Spain Winter 2018/19 Work Programme Update & Drilling Results


Spain Winter 2018/19 Work Programme Update & Drilling Results

Metal Tiger Plc

("Metal Tiger" or the "Company")

Spain – Winter 2018/19 Work Programme Update & Drilling Results

Metal Tiger (LON: MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, is pleased to provide an update on the recent exploration activities of Logrosán Minerals Limited (“LML”) at its wholly owned Logrosán exploration project (“Logrosán” or the “Logrosán Project”) in Extremadura, Spain. The Logrosán Project is at an early exploration stage with confirmed gold and high grade tungsten targets. LML is a 50:50 joint venture (“JV”) between Metal Tiger and Mineral Exploration Network (Finland) Limited (“MEN Finland”).

Exploration work to date at the Logrosán Project has delineated at least eight specific targets which warrant further investigation. With broad mineralised targets qualified at near surface depths by geochemistry, geophysics, trenching and rotary air blast (RAB) drilling, the 2018/19 winter drilling programme comprised 12 diamond drill holes for a total 2,283m drilled (the “Reconnaissance Drill Programme”), with the objective of determining the potential extent and tenor of mineralisation at depth. An initial four targets were selected for the Reconnaissance Drill Programme (two gold targets, one tungsten and gold target and one tungsten target).

Highlights:

  • Diamond drilling at Logrosán has confirmed high grade tungsten intersections and significant gold intersections at depth below surface trenches and previously drilled shallow RAB holes.
  • Objective of the winter Reconnaissance Drill Programme has been to show whether mineralisation continues to depth in four areas ahead of deciding next steps.
  • Assay results now received for all holes, with significant down-hole intersections for named targets, including:
    • Logrosán East Targets (for gold):
    • Hole LDD009 (El Serranillo South)
  • 1m @ 96.2g/t Au, from 54m
  • Hole LDD002 (El Serranillo North)
  • 1m @ 1.65g/t Au, from 200m
  • Zorita Target (for gold & tungsten):
  • Hole LDD011
  • 3m @ 0.35% WO3, from 44m, including:
    • 2m 0.45% WO3 & 0.01% SnO2 from 45m
  • Hole LDD012
  • 1m @ 23.2g/t Au, from 191m
  • 1m @ 9.73g/t Au, from 237m
  • La Dehesa Target (for tungsten):
  • Hole LDD004
  • 6m @ 0.29% WO3 & 0.05% SnO2, from 61m, including:
    • 1m @ 0.52% WO3 & 0.08% SnO2 from 61m, and
    • 2m @ 0.51% WO3 & 0.06% SnO2 from 65m.
  • 3m @ 0.30% WO3 & 0.05% SnO2 from 85m
  • 4m @ 0.38% WO3 & 0.07% SnO2 from 95m, including:
    • 2m @ 0.64% WO3 & 0.07% SnO2 from 97m.
  • Hole LDD007
  • 1m @ 0.40% WO3 & 0.04% SnO2, from 249m
  • 3m @ 0.42% WO3 & 0.05% SnO2, from 259m

A version of this announcement with a map showing the location of drill collars and drill sections is available on the Metal Tiger website: www.metaltigerplc.com

Michael McNeilly, Chief Executive Officer of Metal Tiger, commented:

“We are excited to report the results of this short confirmatory drill programme designed to support a decision on further work at the Logrosán tungsten and gold project.

The confirmatory programme has been conducted in a cost-effective manner, utilising spare drill rig capacity and with direct staffing by our JV partner, MEN Finland.

We consider that the findings have added significantly to the value of the project with five high grade tungsten intersections averaging 3m @ 0.3% WO3, plus associated tin credits, confirmed at depth.

Drilling also yielded three high grade, one metre wide, gold intersections (ranging between 9.7g/t and 96.2g/t Au), across two separate targets. Delineating subsurface gold for the first time in the Logrosán area.

As a comparison, commercial tungsten deposits typically grade from 0.1% WO3. Logrosán is only 40km from W Resources’ La Parrilla tungsten mine (49Mt @ 0.10% WO3) and mill which is currently under development.

We are currently considering the next steps for the project with our JV partners and will provide further updates in due course.”

Reconnaissance Drill Programme

The objective of the Reconnaissance Drill Programme has been to show mineralisation continues to depth at four of eight specific target areas ahead of deciding next steps for the Logrosán Project. The four broad targets, selected on the basis of existing work permits, are:

  • Logrosán East Targets (gold) consisting of a 5km long, 50m – 80m wide gold anomaly (formerly El Seranillo North and El Seranillo East). The current diamond drilling has tested the anomaly at two points (El Serranillo North and El Serranillo East - approximately 2.5km separation) below prospective results in surface trenches (up to 1.88g/t Au and 7.16g/t Au).

In the El Serranillo North target area a total of 22 chip samples have confirmed anomalous gold background over an area of 0.3km2 ranging up to a maximum of 4.45g/t Au. Two deep holes (LDD001 & LDD002) targeted the southern limb of this anomaly with a single 1m intersection above 1g/t Au, but with four separate 3m-4m wide zones averaging 0.06g/t Au that could possibly vector to higher mineralisation in the vicinity.

At the El Serranillo East target a single drill hole LDD009 intersected [email protected] 96.2g/t Au in a 1.5m wide vuggy, oxidised, quartz-carbonate vein, which also contained traces of the copper oxide malachite. Previous soil sampling in this area also delineated anomalous copper (Au-Cu-As soil association).

On a regional scale the Logrosán East anomaly also marks the eastern most edge of a strontium (Sr) depletion front emanating from the San Cristobal intrusion.

  • Zorita Target (previously called W Target 1 / Logrosán South RAB target) is a 1.2km long by 200m wide soil tungsten anomaly. Previous RAB drilling, 17 holes (268m), on two profiles drilled perpendicular to the tungsten anomaly strike at a 380m separation, confirmed near surface high-grade tungsten mineralisation in the north and the centre of the target. The anomaly remains open (untested by drilling) for 700m to the south and for 120m to the north.

The diamond drilling (totalling 3 holes) has shown the high grade tungsten mineralisation continues to at least 44m down-hole depth (hole LDD011), with narrow high grade gold mineralisation intersected (hole LDD012) beneath the Logrosán South arsenic soil anomaly to the east of the tungsten anomaly.

  • La Dehesa Target (previously called W Target 2) consists a 700m long by up to 150m wide soil anomaly orientated NE-SW. It coincides with a 1.6km long geophysical structure and 3 further weaker anomalies associated with parallel structures.

Previous RAB drilling, 65 holes with average 20m depth (1,300m in total), returned 8m at WO3 0.32% near surface.

The diamond drilling, totalling 6 holes between 30m-300m depth, has shown that the high grade tungsten mineralisation has the potential to extend from surface to at least 99m down-hole depth (hole LDD004), possibly past 262m downhole depth (hole LDD007). Intersections from four diamond holes show significant potential to build out a deposit over at least 400m strike length.

For further details of the target areas, please refer to Metal Tiger’s announcement of 27 June 2017.

The work programme consisted of 12 diamond drill holes for a total 2,283m drilled (see Table 1). Individual holes vary between 30m – 300m in depth, with an average 190m and between 40-50 degrees inclination.

The programme utilised a single Geomachine Oy GM-200 diamond core drilling rig, with a Finnish WL-56 size drilling bit to produce a 39mm diameter core diameter. Core was geologically logged and photographed in detail. As this was a reconnaissance drilling programme, core sample intervals were submitted to accredited ALS Laboratory (ALS) in Seville as whole core. Pulps from selected high grade samples were reanalysed and ALS ran their own internal QA/QC.

Table 1: Details of Reconnaissance Drill Programme

Hole ID   Target Area   Targeting   UTM30N Long*   UTM30N Lat*   Altitude (m)   Azimuth (deg.)   Dip (deg.)   Down hole Depth (m)
LDD001 Logrosán East (El Serranillo North) Gold 287869 4360125 521 60 -39 296.8
LDD002 Logrosán East (El Serranillo North) Gold 287907 4359821 499 90 -40 299.9
LDD003 La Dehesa Tungsten 285094 4353908 464 140 -45 29.7
LDD004 La Dehesa Tungsten 285151 4353823 464 323 -45 106.3
LDD005 La Dehesa Tungsten 285250 4354033 469 325 -50 107.9
LDD006 La Dehesa Tungsten 285296 4354221 465 90 -45 110.7
LDD007 La Dehesa Tungsten 284994 4354020 462 145 -40 299.1
LDD008 La Dehesa Tungsten 285126 4354205 470 145 -41 262.6
LDD009 Logrosán East (El Serranillo East) Gold 288030 4357169 509 135 -50 196.5
LDD010 Zorita Tungsten 272867 4354974 458 270 -45 193.4
LDD011 Zorita Tungsten 272819 4354942 455 270 -45 100.0
LDD012 Zorita Gold 274413 4354713 445 130 -45 280.0

(*Coordinates given in UTM zone 30N) Total:

2,283m

Project Background

LML is the joint venture operating company for the Logrosán Project and Maria gold and antimony project (the “Maria Project”). It is held 50%/50% by Metal Tiger and JV partners MEN Finland. LML was incorporated in the UK on 13 March 2015.

During the 18 months prior to the joint venture commencing, Metal Tiger's joint venture partner MEN Finland, carried out more than 40,000 soil samples, hundreds of pan-concentrate samples, covered thousands of linear kilometres with ground magnetic survey and assessed electro-magnetic tomography. The presence of tungsten mineralisation had been confirmed by soil sampling, outcrop sampling, trenching and historical drill holes. Gold mineralisation had been indicated by pan-concentrate sampling which delineated three areas with anomalous gold.

Metal Tiger funded €1 million in exploration work between 2015 and 2017 in line with an agreed exploration programme that included up to 5,000 metres of RAB drilling, to earn 50% of Logrosán Minerals Limited.

The Maria Project is approximately 15 kilometres north of the Logrosán Project licences. Soil geochemistry and the results from RAB drilling indicate that the project area has prospectivity for antimony-gold style mineralisation.

The Logrosán Project and Maria Project areas, are located in a geologically prospective, under-explored and mining friendly jurisdiction in west-central Spain within the province of Cáceres in the Extremadura autonomous region. The projects are served by a well-developed and maintained road network, with good power, water and telecommunications infrastructure and enjoy the full support of the regional and local government and administration.

There are two publicly listed exploration and pre-production development companies located within the surrounding region. W Resources’ La Parrilla tungsten mine is 43km south-west of the project areas and Berkeley Energia’s Gambuta uranium deposit is 30km north.

Competent Person's Statement

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 plc 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)
 
Richard Tulloch

James Dance

Jack Botros

Strand Hanson Limited (Nominated Adviser) Tel +44 (0)20 7409 3494
 
Nick Emerson SI Capital (Broker) Tel: +44 (0)1483 413 500
 
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, and its 50% interest in Kalahari Metals Limited, 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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