Metal Tiger PLC (LON:MTR) Chief Executive Officer Michael McNeilly caught up with DirectorsTalk for an exclusive interview to discuss their recent update on the Botswana Copper/Silver project.
Q1: We’ve just seen the update regarding the joint venture with MOD Resources, what can you tell us about the results?
A1: There’s over 90 metres of visible copper minerals and you’re looking at the exact sort of same copper mineral that we have over at T3, so you’ve got chalcopyrite, bornite and chalcocite and they’re occurring within numerous quartz/carbonate veins and what’s incredibly exciting about this is it’s matching with the EM geophysics, what we call the ‘T3 Marker Unit’.
So, it’s obviously only the first drill hole and there’s several more drill holes to come, there a planned 60 drill hole programme at the T3 Dome where there’s 7 domes we’re targeting and other targets as well. If further holes continue to match with the EM targeting, then it’s incredibly positive and it proves that the exploration techniques are working to identify copper. Obviously, I have to caveat that with we haven’t assayed these yet but obviously the widths are encouraging and the fact that we’re hitting visible copper mineralisation is incredibly encouraging.
So, it’s a very positive announcement, it’s early days yet and it’s only the first of 7 varied domes so it’s one of these things where it’s going to have incredible value for anybody exploring in the belt, including our recent investment into Kalahari Metals where, obviously, we’re looking to do advanced high-resolution aero MAG and eventually, AEM. So, if the interpretation of the AEM identifies interesting targets then hopefully at that end of the belt there will also be a very good way of intercepting copper mineralisation if it’s there.
Q2: So, what does the result of this drill hole mean for the rest of the campaign?
A2: Clearly, for the rest of the company as I already mentioned there’s cross over with Kalahari Metals the recent investment, but also in terms of our 30% stake exploration success, proving that there’s more copper out there, it’s still very early days. What we need to do is get to the stage where we’re hitting more visible copper mineralisation and that the assays are coming back with grades that are high enough to justify defining a resource and potentially something that would move to a scoping study. So, it’s still very early days but that’s where we are, and you couldn’t ask for better initial results.
Q3: Do you think this further de-risks the project?
A3: As far as I view it, the T3 project in itself is already very de-risked, it’s already had a PFS published on it and it’s moving to DFS now and whether you’ve had any exploration success, there’s already a huge amount of value in T3.
In terms of de-risking, I think it adds value, exploration is always risky, always spending money in the hope that you find economic deposits. What this does in terms of de-risking it is it’s proving that the methodology for finding copper could work again, it’s only the first drill hole, it matches perfectly so we’ll know if further drill holes continue to match, in theory it should continue to work over the other domes that the joint venture is looking to drill.
So, in that sense, yes, I would say it’s de-risking the project.
Q4: When might investors expect more news on drilling of the T3 Dome complex?
A4: They’re currently drilling the A9 target and I believe they’ll be looking to deploy further drill rigs on to this A4 target and then they’ll also be looking to move drill rigs onto the A1 target. You’re getting anywhere from 30-45 metres a day, sometimes less depending on how deep the hole is and conditions, but I’d be hopeful that there’d be more news flow in the next month or so.
Q5: Just looking back from Metal Tiger’s initial investment in MOD, has the project developed how you would expect?
A5: Absolutely. In terms of the initial investment, if you look at the see-through value of our 30%, as a component of MOD’s 70%, and grossed it up, obviously there’s no materialisation of that value but in terms of that simple market value, clearly, it’s worth a lot more than what it’s being held at cost on our balance sheet.
So, you could not ask for more in terms of the amount of money we committed to get the 30% and then obviously MOD have been incredibly slick operators, the drilling costs are incredibly cheap, and they’ve been very efficient. Where we’ve fallen short, which has been fixed now, is obviously on these environmental management permits but I think that process is now well understood and well underway at T20.
So, we should be looking to get more ground which we can drill, and obviously the contractors that MOD are using in discovery are very efficient and MOD have now got a very good handle, so I think things will move a lot quicker. We also have a sample prep lab on site at what’s called The Barn where the core shed is, the offices for the operating company.
So, it’s certainly progress how I would have expected, obviously there was a period of time where we had delays and we weren’t able to drive, that obviously is no longer the case, and there’s more than enough targets for the time being to keep everybody very very busy.
Of course, the DFS work continues at pace and we’re targeting Q1 next year to be able to deliver that. As well, there’s a resource update from all the infill drilling that’s already completed at T3 that we’re hopeful will improve the economics of the project in due course.
