Metal Tiger Plc (AIM:MTR) Botswana Copper/Silver Project – Exploration Budget Agreed

Metal Tiger plc (LON:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, is pleased to provide an update regarding 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).

Metal Tiger also holds 95,543,934 MOD shares, equivalent to 5.049% of MOD’s issued share capital and 1,541,667 MOD warrants at an exercise price of 6 cents (Australian). Activities in Botswana are conducted under the JV’s local operating company Tshukudu Metals Botswana (Pty) Ltd. (“Tshukudu”).

Highlights:

  • JV partners set regional exploration budget at AUD 10M for 12 months commencing 1 October 2017, to fast track drilling of district-scale copper targets.
  • Metal Tiger to contribute 30% of incurred exploration costs, up to GBP 1.85M at current exchange rates, in line with direct JV holding.
  • Work to focus on 150km corridor within the highly prospective Kalahari Copper Belt which hosts T3 and other copper targets.
  • Drilling targets will include airborne electromagnetic geophysics anomalies as well as soil copper anomalies.

Michael McNeilly Chief Executive Officer of Metal Tiger commented:

“The Botswana project has continued at every step to outperform our expectations and this decision to increase the exploration provision has been driven by our growing understanding of the potential of the Botswana Copper Belt, with the many exciting new copper targets identified over the past year and the encouraging results to date. This is against a backdrop of growing copper prices, with copper currently at a 52-week high up almost 50% over the September 2016 low.

We are also hugely encouraged by the positive impact of the growth in electric vehicles on copper demand, with the International Copper Association forecasting a 9-fold increase in copper demand in the electric vehicle sector over the next decade.”

For an image that may assist readers in the visualisation of the T3 Project area and planned exploration targets mentioned in this announcement, we would refer to the announcement released today by MOD Resources. This announcement can be viewed through the following link.

Shareholders should note that the timing of MOD announcements are outside the control of MTR, however, MTR does its utmost to announce the drill results and important updates as soon as practicable after MOD makes its announcement to the ASX. MTR are only made aware of drill results and important updates immediately prior to the MOD release.

Botswana Copper Project Planned Exploration Budget

Joint venture partners Metal Tiger and MOD Resources have agreed on the Botswana Copper Project annual exploration budget for the 12 months commencing 1 October 2017. Planned exploration expenditure includes:

  • Annual regional exploration budget of up to AUD 10M to be allocated across JV licences totalling over 8,000km2.
  • Metal Tiger to contribute 30% of incurred exploration costs, up to GBP 1.85M at current exchange rates, in line with direct JV holding.
  • Primary focus remains to bring the T3 Project into production whilst continuing to build on its substantial upside.
  • In addition to the current T3 drill programme, the regional exploration budget allows for over 160 diamond drill holes and 40 reverse circulation holes with the majority to focus upon targets along the T3 Dome and T20 Dome.
  • Line items in the budget to include:
  • Funding current T3 drilling programme which includes up to 70 diamond drill holes.
  • Drill testing up to 19 airborne electromagnetic (EM) geophysics targets along the 50km long axis of the T3 Dome. With Tshukudu currently seeking environmental approval from the Botswana Department of Environmental Affairs to drill 14 airborne EM and copper soil targets.
  • Airborne EM survey over large areas of the T20 Dome to identify possible conductors which may be associated with soil copper anomalies.
  • Extending soil geochemical survey coverage from the T20 Dome, through the T4 and T22 prospects to the western end of the T3 Dome. This will serve to increase coverage over a total 150km combined strike length.
  • Undertake work on western part of T20 Dome within recently awarded prospecting licences PL099/2017 and PL189/2017 (totalling 655km2).

Background

The T3 Project 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 within the central part of the T3 Dome (approximately 1000km2), which is the focus of rapidly increasing exploration activity undertaken by Tshukudu. Two significant resources have been discovered to date within the T3 Dome: T1 (Mahumo deposit 100% MOD) and T3 (70% MOD / 30% MTR).

The T3 deposit was discovered in March 2016 when a reverse circulation (“RC”) drill hole intersected 52m @ 2.0% Cu and 32g/t Ag from shallow depth. The maiden T3 JORC (2012) compliant Mineral Resource was announced on 26 September 2016 with the first Resource upgrade announced on 24 August 2017. The results of a Scoping Study for an open pit mine at T3 with a 2Mtpa processing plant, an indicative mine life of 10 years and an average production rate of 21,800tpa of copper and 665,000oz pa of silver was released on 6 December 2016. Work on a Pre-Feasibility Study (PFS) commenced in January 2017 and additional deeper copper mineralisation was discovered below the T3 Resource in February 2017.

The T3 Prospect geological data and exploration results have been reviewed and approved by Jacques Janse van Rensburg, BSc (Hons), Business Development Manager and Competent Person for MOD Resources Ltd. Mineral Resource estimation and classification of the T3 Copper/Silver Project was conducted and approved by Mr A.I. Pretorius, MSc. Pri.Sci.Nat. an independent consultant to MOD Resources Ltd.

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 acts as the Competent 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 Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Metal Tiger PLC to provide technical support.

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