6 December 2019


Metal Tiger plc


("Metal Tiger" or the "Company")


Kalahari Metals Limited - Botswana Drilling Update


Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, is pleased to provide an exploration update for the Kalahari Metals Limited ("KML") Botswana copper-silver (Cu-Ag) exploration projects; Kitlanya West ("KIT-W"); Kitlanya East ("KIT-E"); and the Okavango Copper Project ("OCP"). The Company has a 59.81 per cent interest in KML.



    -- OCP 2019 Drilling Programme totalling 1,656m has completed with the six holes (OCP01 to OCP06) successfully proving the presence of D'Kar Formation ("DKF") and Ngwako Pan Formation ("NPF") stratigraphy and the DKF-NPF contact that hosts prospective Cu-Ag mineralisation. Hole OCP06 has intersected two wide zones, totalling 85m, with visible Copper-sulphide mineralisation, between 240m - 255m and 272m - 342m downhole depth. Visible sulphides in OCP06 include chalcopyrite, bornite and minor chalcocite hosted in veins, fractures and disseminated forms, with increased intensity proximal to the DKF-NPF contact. Core samples are being sent for assay. Holes OCP01 to OCP05 also display anomalous lead ("Pb"), zinc ("Zn"), silver ("Ag") along with elevated Cu values based on portable XRF analysis and logging. All holes, except OCP05, intersected the DKF-NPF contact at the modelled depth. 
    -- Botswana Department of Environmental Affairs has authorised the commencement of exploration activities including drilling at KIT-W and KIT-E. Gazetting of the required Environmental Management Plans ("EMPs") has completed and drilling is planned to commence testing structural targets at KIT-E, 5km from the T3 Deposit (which is 100% owned by Sandfire Resources NL) and its planned processing plant, in early 2020. 
    -- Seven compelling drill targets have been identified from coincident regional soil sampling and airborne electromagnetic geophysics ("AEM") results in the KIT-W area. The conductive targets associated with Pb-Zn soil anomalies, likely representing lower DKF units, are sited in a range of fold closure, anticline hinge zones, T3-type 'domes' and traditional limb style settings, all of which are considered prospective for Cu-Ag mineralisation. 

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


"We are very encouraged to report the intersection of wide zones of copper mineralisation from diamond drilling at KML's Okavango Copper Project, on the Kalahari Copper Belt, in Botswana. Whilst we are still awaiting core assays the presence of trace copper sulphides, over a total interval of approximately 85m, may represent a mineralised halo to potentially higher-grade copper mineralisation nearby.


We can also report the Botswana Department of Environmental Affairs has provided authorisation to proceed with exploration activities including drilling of high priority targets on KML's Kitlanya properties. Drilling is planned to commence testing structural targets within the KIT-E area in early 2020. In the KIT-W area, encouraging findings from the recent regional soil sampling and AEM geophysics surveys, include the delineation of seven compelling targets which also warrant drill testing.


We look forward to providing further updates in the near future."


A version of this release complete with location figures and drill core photos is available via the Metal Tiger website (www.metaltigerplc.com).


Okavango Copper Project Drilling Summary


The 2019 OCP drilling programme has now completed with a total of 1,656m drilled from six diamond drill holes (OCP01 to OCP06).


The current phase of drilling has focussed on testing for evidence of a mineralised halo surrounding a potential deposit situated in both fold hinge and fold limb settings. Drill holes OCP01 to OCP05 explore the fold hinge and northern limb of target OCP-FH-01. The target is considered to share many similarities with Cupric Canyon Capital's ("Cupric") Banana Zone, which includes a number of deposits in the fold hinge and limbs and is situated along structure.


Drill holes OCP01 to OCP05 have intersected prospective reducing lower DKF stratigraphy overlying typically oxidizing footwall NPF. The rocks encountered are directly comparable to elsewhere in the Kalahari Copper Belt, with the target package (below lowermost thick massive Sandstone package "MSST", above NPF) increasing in thickness from the NE to the SW.


Anomalous Pb-Zn halos were intersected above the MSST of the DKF, frequently related to dilatational veining. There has been a notable increase in the amount and frequency of carbonate veining due SW of the northern limb target, OCP-FH-01. Similarly, there has been an increase in the amount of carbonate lithologies at the base of the DKF. OCP04 intersected the thickest carbonate package (marl to limestone) that is interpreted to have been formed in a shelf environment as part of a carbonate reef setting, somewhat similar to Cupric's Zone 5 deposit.


Drill hole OCP06 targeted the southern limb contact on an anticline extending some 40km due NE from the Zone 5 deposit, intersecting similar lower DKF stratigraphy to OCP01 to OCP05, with a marked increase in quartz-carbonate veining. Mineralisation consisting of vein, fracture and disseminated bornite, chalcopyrite and fine-grained chalcocite has been logged over a broad zone (>85m) extending into the NPF footwall. Although predominantly in trace amounts, several zones of thicker vein hosted mineralisation are noted in proximity (or directly below) the DKF-NPF contact.


Core from OCP06 is currently being cut and sampled and will be sent for analysis together with the samples from OCP01, OCP03 and OCP04 which are ready for shipment.


Hole OCP02 is the only hole to be assayed to date, its assay results (Table 2 below) highlight anomalous Ag content with elevated Cu reaching a maximum of 0.225 per cent. over 0.5m near the DKF-NPF contact. Initial field observations regarding visible chalcocite mineralisation were proven incorrect with metallic minerals more likely attributed to a Pb-Ag bearing mineral. All follow-on mineralisation logging has utilised a portable XRF analyser to verify the presence of Cu-bearing sulphides during the core logging phase.


Drill hole planning has relied on detailed airborne electro-magnetic ("AEM") modelling, which has proven highly effective in estimating the 3D position of carbonaceous marker units in the lower DKF. Using the marker conductors, drill holes successfully intersected the prospective lower DKF stratigraphy and underlying NPF without relying on drill traverses or pilot holes traditionally employed to target the DKF-NPF contact. The result is a significant cost benefit and more effective means for testing the extensive prospective strike under areas with thicker cover.


Details of the 2019 OCP drill programme findings and OCP02 assay results are summarised in Table 1 and Table 2 respectively below:


Table 1: Summary of drill results for OCP (CPY=chalcopyrite, BN=bornite, CC=chalcocite)

Drill hole  DKF-NPF contact End of hole depth Key geological       Mineralisation 
            intersected                       features 
OCP01       Yes             357m              Kalahari Thickness:  No 
                                              94m.                 visible 
                                              CAR Marker           Cu 
                                              Thickness:           Mineralisation. 
                                              MSST Thickness: 39m. 
                                              Target Package 
                                              Flat laying 
                                              lower DKF 
                                              drilled in the 
                                              fold hinge 
                                              zone. The units 
                                              are plunging 
                                              around 11° towards 
OCP02       Yes             282m              Kalahari Thickness:  No 
                                              95m.                 visible 
                                              CAR Marker           Cu 
                                              Thickness:           Mineralisation. 
                                              34m.                 Trace 
                                              MSST Thickness: 65m. amount 
                                              Target Package       of 
                                              thickness:           Pb-Ag 
                                              11m.                 mineralisation. 
                                              DKF package dipping 
                                              40° towards NW. 
OCP03       Yes             204m              Kalahari Thickness:  No 
                                              97m.                 visible 
                                              CAR Marker           Cu 
                                              Thickness:           Mineralisation. 
                                              >5m.                 Trace 
                                              MSST Thickness: 32m. amount 
                                              Target Package       of 
                                              thickness:           Pb-Ag 
                                              14m.                 mineralisation. 
                                              DKF package dipping 
                                              35° towards NW. 
OCP04       Yes             294m              Kalahari Thickness:  No 
                                              91m.                 visible 
                                              CAR Marker           Cu 
                                              Thickness:           Mineralisation. 
                                              31m.                 Trace 
                                              MSST Thickness: 50m. amount 
                                              Target Package       of 
                                              thickness:           Pb-Ag 
                                              26m.                 mineralisation. 
                                              DKF package dipping 
                                              around 55° 
                                              NW. Intersected 
                                              a considerably 
                                              thick basal 
                                              carbonate package 
                                              (17m) consisting 
                                              of marl 
                                              and highly 
                                              overlying the NPF. 
OCP05       No              177m              Kalahari Thickness:  No 
                                              89m.                 visible 
                                              CAR Marker           Cu 
                                              Thickness:           Mineralisation. 
                                              MSST Thickness: 
                                              > 8m. 
                                              DKF package dipping 
                                              40° towards NW. 
OCP06       Yes             342m              Kalahari Thickness:  Vein and 
                                              81m.                 fracture 
                                              CAR Marker           related, 
                                              Thickness:           to stringers 
                                              20m.                 and disseminated 
                                              MSST Thickness: 30m. CPY, 
                                              Target Package       BN and minor CC 
                                              thickness:           mineralisation 
                                              27m.                 from 240 - 255; 
                                                                   272 - 342m); 
                                              DKF package dipping  Overall trace 
                                              between              amounts 
                                              63° and 79° towards  of Cu sulphide 
                                              SE.                  mineralisation, 
                                                                   to the DKF-NPF 

Table 2: Assay results for OCP02 over the target stratigraphy above the DKF-NPF contact

Hole ID  From (m) To (m) Apparent  Ag (g/t) Cu (ppm) Pb (ppm) Zn (ppm) 
OCP02    241.04   241.84 0.80      1.3      493      3179     33 
OCP02    241.84   242.64 0.80      1.5      246      1176     53 
OCP02    242.64   243.50 0.86      1.4      205      964      722 
OCP02    243.50   244.30 0.80      0.7      86       1102     1865 
OCP02    244.30   245.15 0.85      1.2      65       274      285 
OCP02    245.15   245.68 0.53      2        91       256      230 
OCP02    245.68   246.70 1.02      3.7      248      520      1113 
OCP02    246.70   247.70 1.00      1.5      130      462      914 
OCP02    247.70   248.77 1.07      3.2      423      535      164 
OCP02    248.77   249.30 0.53      25       2251     443      144 
OCP02    249.30   250.45 1.15      8.5      648      115      44 
OCP02    250.45   251.00 0.55      1.4      336      390      40 

Kitlanya Environmental Management Plan and Initial Drill Programme


The Botswana Department of Environmental Affairs has provided authorisation to KML to proceed with exploration activities including drilling of targets on both KIT-W and KIT-E, following the completion of the mandatory EMP.


KML plans to commence drilling at KIT-E in early 2020. KIT-E is located approximately 5km from the T3 Deposit and its planned processing plant. Drilling is planned to initially consist of four scout diamond holes which will target fold hinge structures identified in the recent detailed AEM survey, which may represent CAR (a thick package of carbonaceous siltstone) marker units in the lower DKF providing a similar stratigraphic marker to the OCP. A more comprehensive soil sampling programme will be undertaken concurrently with the diamond drill programme. Soil sampling results will be combined with drilling to generate targets for more extensive reverse circulation ("RC") drilling.


KIT-W Soil Sample Geochemistry and Regional AEM Geophysics


A regional AEM geophysics survey was successfully completed over the KIT-W licence area at a 2km line spacing, with the objective of mapping Kalahari cover thickness and potential lower DKF conductors, which can potentially be used to model the position of the underlying target DKF-NCP contact:

    -- Modelling of resulting data suggests the Kalahari cover is thinner than initially interpreted, varying between 30 and 60m thickness; 
    -- Three prominent conductors have been identified in fold hinge zones interpreted from magnetic data - these may represent analogues to Sandfire Resources' T3 deposit; and 
    -- Weak conductors in interpreted lower D'Kar units may be representative of carbonaceous marker units above the DKF-NPF contact. 

A total of 3,550 soil samples were collected on regional traverses across the KIT-W licence. Results have been analysed using a desktop Niton portable XRF. Further analysis with TerraleachTM TL1 low concentration partial leach is planned. Results are summarised as follows:

    -- Interpretation of Kgwebe basement volcanics is supported by their geochemical signature and associated elevated Cu and Pb; and 
    -- Elevated to anomalous, Pb, Zn (and to a lesser degree Cu) associated with interpreted lower DKF stratigraphy including potential fold hinge and fold closure targets. 

Seven compelling targets have been identified using a combination of AEM and soil sampling. Targets include a range of fold closure, anticline hinge zones, T3-type 'domes', and traditional limb styles of Cu-Ag mineralisation.


Project Background


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:

Michael McNeilly  (Chief Executive Officer)   Tel: +44 (0)20 7099 0738 
Mark Potter       (Chief Investment Officer) 
Richard Tulloch   Strand Hanson Limited       Tel +44 (0)20 7409 3494 
James Dance       (Nominated Adviser) 
Jack Botros 
Paul Shackleton   Arden Partners plc (Broker) Tel: +44 (0)20 7614 5900 
Steve Douglas 
Gordon Poole      Camarco (Financial PR)      Tel: +44 (0)20 3757 4980 
James Crothers 
Monique Perks 

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 3.5% interest in Sandfire Resources NL (ASX: SFR). 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 has a growing interest in the large and highly prospective Kalahari copper/silver belt through its interest in Kalahari Metals Limited. 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.


View source version on businesswire.com: https://www.businesswire.com/news/home/20191205005733/en/

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December 06, 2019 02:00 ET (07:00 GMT)

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