Kalahari Metals Limited - Drilling Progress Update
7 October 2019
Metal Tiger plc
("Metal Tiger" or the "Company")
Kalahari Metals Limited - Drilling Progress Update
Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, is pleased to provide an update on the ongoing drilling campaign at the Ngami Copper Project ("NCP") and Okavango Copper Project ("OCP"), in which the Company holds an interest in via its 59.81 per cent. investment in Kalahari Metals Limited ("KML").
These inaugural diamond core drilling works at the NCP and OCP are testing geological contacts within fold-hinges identified by airborne electromagnetic ("AEM") geophysics, which are thought to be prospective for hosting upgraded Copper-Silver (Cu-Ag) mineralisation.
· Drill intersections into the priority Fold Nose Target at OCP have identified veinlet and disseminated sulphide dominant Cu mineralisation over a broad 25m zone on the northern side of the fold-hinge. Drilling has started along strike from this hole.
· To date, nine drill holes totalling 2,008m have been completed across both projects:
o NCP: Seven holes (NCP01 to NCP07), totalling 1,381m drilled;
o OCP: Two holes (OCP01 and OCP02), totalling 627m drilled.
· Drilling at both the NCP and OCP has successfully intersected the D'Kar formation ("DKF") - Ngwako Pan formation ("NPF") contact in fold-hinge settings with associated Cu mineralisation.
· AEM modelling of Kalahari cover thickness and the position of the DKF-NPF contact has been verified by the drilling to date, thus confirming the AEM data as a tool for targeting Cu-Ag mineralisation.
Michael McNeilly, Chief Executive Officer of Metal Tiger plc, commented:
"This is a very positive start to KML's inaugural drilling campaign, and we are delighted that the airborne geophysics modelling and the technical team's iterative interpretation of this in conjunction with magnetics and other factors is proving a reliable methodology for targeting the D'Kar - Ngwako Pan geological contact which is often associated with copper and silver mineralisation on Botswana's Kalahari Copper Belt. We are very encouraged by the visible copper mineralisation seen in the core and look forward to testing for further mineralisation along strike. This bodes well for future drilling campaigns, especially at the Kit-East project which is proximal to the T3 Project. I am encouraged by the thoroughness and professionalism that goes into the geological interpretation that has allowed for such early success."
Ngami Copper Project Drilling Summary
Drilling has focussed on testing fold-hinge targets identified in AEM modelling and high-resolution magnetic interpretation with a total of seven drill holes completed, totalling 1,381.05m. The Kalahari thickness over NCP varies significantly ranging from 58m to 133m. Unlike the OCP, the drill tested AEM conductor correlates very well with a 35 - 62m thick mudstone package of likely late Karoo age, which overlies prospective older DKF stratigraphy. Drilling was therefore reprioritised using the magnetic interpretation with NCP06 intersecting the DKF-NPF contact at 254.9m with associated trace amounts of Cu carbonates. Drilling has demonstrated the potential for fold-hinge related mineralisation in this project area.
Okavango Copper Project Drilling Summary
To date, a total of 627.10m have been drilled from two drill holes over the OCP Fold Nose Target. In both cases, drill holes (OCP01 and OCP02) have intersected the prospective DKF-NPF contact and confirmed that the folded conductor identified in the AEM modelling correlates well with a 35-50m thick package of carbonaceous siltstone (termed the CAR Marker) in the lower DKF. This recent understanding of the AEM conductor is now being used to accurately position additional drill hole positions without a requirement for expensive stratigraphic pilot holes.
The first hole (OCP01) was drilled into the hinge zone of the northeast plunging anticline intersecting trace amounts of Cu carbonates hosted in fractures from 183-202m (within DKF Massive Marker Sandstone ("MSST"), as well as from 280-311m (within NPF sandstone)).
The second hole (OCP02) was positioned 1.6km due west of OCP01 in order to test the northern limb of the anticline, proximal to the fold nose. OCP02 proved more successful, intersecting a broad mineralised zone which included visible Cu sulphide mineralisation from 240.5-264.1m. This mineralised package is located in the lowermost portion of the DKF, below the MSST and proximal to the DKF-NPF contact. The Cu sulphide mineralisation is associated with thin, cross-cutting carbonate and quartz veinlets, as well as disseminations within the units. Additional limited Cu sulphide mineralisation is observed below the DKF-NPF contact within the NPF from 255.8-264.1m.
The core is currently in the process of being cut and sampled, prior to being sent to an analytical laboratory for geochemical analysis. Additional drilling is planned to test for continuation of mineralisation along strike from OCP02.
KML, 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 (consisting of the Ngami Copper Project and the Okavango Copper Project), five exploration licences subject to a binding earn-in agreement with Triprop Holdings (Pty) Limited, and five exploration licences held by Kitlanya Limited ("Kitlanya") subject to an agreement with Resource Exploration and Development Ltd ("RED").
As announced on 10 April 2019, KML has entered into a binding agreement with RED to purchase 100% of Kitlanya, which is conditional upon approval of the change of control of Kitlanya being granted by the authorities in Botswana and receipt of an updated letter of good standing for the licences. On completion of the acquisition, the previous earn-in agreement between RED and KML will terminate.
On 31 May 2019, Metal Tiger announced a further US$1.1m equity investment into KML, increasing its interest to 59.81%. The Company's interest will reduce to 53.17% upon completion of KML's purchase of Kitlanya. Notwithstanding Metal Tiger's majority shareholding in KML following this investment, KML does not fall to be treated as a subsidiary of Metal Tiger as an agreement between the shareholders of KML precludes Metal Tiger from exercising control.
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:
(Chief Executive Officer)
Tel: +44 (0)20 7099 0738
(Chief Investment Officer)
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Strand Hanson Limited (Nominated Adviser)
Tel +44 (0)20 7409 3494
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SI Capital (Broker)
Tel: +44 (0)1483 413 500
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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: Direct Equities and Direct Projects.
The Direct Equities Division invests in undervalued natural resource companies. The majority of its investments are listed on AIM, the TSX and the ASX, which includes its 19.9% interest in MOD Resources Limited. 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 in the Direct Projects Division.
The Direct Projects Division is focused on the development of its key project interests in Botswana, Spain and Thailand. In Botswana, Metal Tiger, through its joint venture with MOD and its 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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
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