Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed investor in natural resource opportunities, is pleased to provide an update in relation to its investment in Sandfire Resources (“Sandfire”), which also relates to the Company’s uncapped (with no buyout provision) 2% Net Smelter Royalty, which it holds over circa 8,000km2 of prospective ground, held by Tshukudu Exploration (the “Royalty”).
Metal Tiger holds 6,296,990 shares in Sandfire representing approximately 3.5% of Sandfire’s issued share capital. As announced on 13 July 2020, 2,573,173 of the Sandfire shares the Company holds are subject to an equity derivative collar financing arrangement with a global investment bank.
Sandfire has today released the following update in relation to exploration work at Tshukudu.
The Company notes that Sandfire has embarked on a substantial exploration programme with the initial focus on the T3 Expansion Project, which included the drilling of high-priority targets identified within a 25km radius of T3. Sandfire has enjoyed considerable early success with the emerging A4 Dome discovery located 8km west of the T3 Project, where it has announced significant wide intercepts of shallow, high-grade vein-hosted copper-silver mineralisation. As a result, A4 has progressed rapidly to a resource drill-out.
Drilling accelerated through February and March however all activities were suspended in late March due to the lockdown imposed by the Botswana Government in response to the COVID-19 pandemic.
Results were reported within the A4 resource area on 17 April 2020 and 25 May 2020, with many drill-holes delivering significant high-grade intersections of copper-silver mineralisation. Hole MO-A4-035D has delivered the best intersection reported from A4 to date, returning 18m at 5.2% Cu and 124g/t Ag from 77m downhole (uncut) or 18m at 3.9% Cu and 124g/t Ag from 77m down-hole (top-cut to 15% Cu).
A4 intersections announced on 25 May 2020 included:
20.5m @ 3.6% Cu and 88g/t Ag from 78.5m down-hole in MO-A4-045D;
21.8m @ 2.5% Cu and 57g/t Ag from 74.2m down-hole in MO-A4-047D; and
32.8m @ 1.8% Cu and 32g/t Ag from 94.9m down-hole in MO-A4-049D.
The results demonstrate the continuity of high-grade vein-hosted mineralisation along strike within the A4 resource area and have increased the known strike length of the mineralisation to 800m with the deposit remaining open both to the north-east and south-west.
Drilling resumed at A4 in early June with up to six drill rigs drilling on 50m spaced sections with the objective to define a maiden mineral resource by the end of September.
In addition, Sandfire has reported that re-interpretation of AEM data over the A4 Dome suggests that the area of current drilling appears to have tested only part of the host structure (Zone A) which may continue north-east. In addition, the Zone B structure 600m south of Zone A, and two interpreted structures within the T3 Dome east of the planned T3 mine, are also high priority targets planned to be drilled during the next phase of drilling.
Furthermore, AEM sections across A1 Dome show several important similarities to AEM sections across A4 Dome. Similarities include the interpreted southward thrusting of the copper host sequence over the top of the domes and steep north dipping structures extending along the axis of the domes. The potential at A1 is supported by drill-hole MO-A1-002D drilled by the MOD in 2018. MO-A1-002D intersected 7m @ 0.9% Cu and 4g/t Ag from 190m and 0.4m @ 5.7% Cu and 95g/t Ag from 209.2m down-hole depth within a wide zone of veining similar to A4.
Michael McNeilly, Chief Executive Officer of Metal Tiger plc, commented:
“We are very pleased to see Sandfire’s recent progress with respect to its aggressive exploration programme in the Kalahari Copper Belt where Metal Tiger has a direct royalty interest. We are delighted to see that we can expect the delivery of a maiden mineral resource at A4 by the end of September, a very important milestone that we believe will substantially increase the value of our Royalty. We are further encouraged that Sandfire is targeting the A1 area which is in an area also covered by our Royalty.”
Sandfire has also today released the following updates (links to the announcements below):
June 2020 Quarterly Report
June 2020 Quarterly Report Presentation
For further information on the Company, visit: www.metaltigerplc.com
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: Equity Investments and Project Investments.
Equity Investments invests in undervalued natural resource companies. The majority of its investments are listed on AIM, the TSX and the ASX, which includes its interest in Sandfire Resources Limited (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 for the Project Investments division.
Project Investments is focused on the development of its key project interests in Botswana, where Metal Tiger has a growing interest in the large and highly prospective Kalahari copper/silver belt through its interest in Kalahari Metals Limited.
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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