Metal Tiger plc (LON:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, today provided an operational update on its investment in Kalahari Metals Limited, in which Metal Tiger currently holds 59.81% of the issued share capital.
Michael McNeilly, Chief Executive Officer of Metal Tiger plc, commented:
“We are delighted by the continued support of the Government of Botswana as we look to realise further potential in the Kalahari Copper Belt. The results of the airborne geophysics survey over the Kitlanya East project area are very encouraging, with clear structural drill targets supported by soil geochemistry and close proximity to the MOD T3 deposit. The completion of the environmental management plan gazetting will allow Kalahari to progress the Kitlanya East area to, what we hope will be, an exciting period of drill testing.”
Highlights
- Environmental management plans (“EMP”) for both Kitlanya East (“KIT-E”) and Kitlanya West (“KIT-W”) licence packages approved for gazetting by the Botswana Department of Environmental Affairs (“DEA”). Following gazetting, the approval of the EMP provides a green light to drill test targets.
- In KIT-E area recently completed Airborne Electromagnetic Geophysics (AEM) survey has identified folded conductors interpreted to relate to Lower D’Kar formation and possible Cu-Ag hosting redox contacts with the Ngwako Pan formation.
- Two targets, in close proximity to the MOD T3 deposit, identified as a priority for drill testing:
- Target KIT-E-1A, a tightly folded conductor located in a fold nose mapped from high-resolution magnetic data, supported by anomalous Zn soil sample geochemistry.
- Target KIT-E-2A, an open, easterly plunging interpreted anticlinal structure, whose proximity to the neighbouring T3 deposit (approximately 5km) is considered significant for potential Cu-Ag mineralisation.
- Targets are supported by magnetic data interpretation, soil geochemistry results and stratigraphy intersected in historical drilling.
Airborne Electromagnetic Survey Details
The 527 line-kilometre AEM geophysics programme was completed during August 2019. The detailed and regional scale survey work was flown by experienced South Africa based contractors New Resolution Geophysics, utilising their XCiteTM system to target conductive geological marker units in the lower D’Kar Formation, above the potentially mineralised contact with the underlying Ngwako Pan Formation.
A detailed survey was flown at 200m line spacing over the northern priority targets in KIT-E and has helped to map conductive marker units in the lower D’Kar Formation.
The regional survey was flown at 2km line spacing over the KIT-W project area, which will assist with mapping of Kalahari Group cover thickness and interpretation of anticline structures identified in magnetic data. Results are being interpreted in conjunction with the recent soil geochemical sampling programme results and historical airborne geophysical data to prioritise potentially mineralised fold hinge targets.
KIT-E AEM Results
The AEM data has been processed and inverted using a 1D layered earth model. Results from the inversion have been used to model the conductivity variation with depth in full 3D space.
AEM results have identified a series of folded weak to moderate conductivity units which correlate well with the interpreted low susceptibility units of the lower D’Kar formation. Conductors in the lower D’Kar provide useful marker units by tracking the position of the underlying mineralised contact with the Ngwako Pan red beds.
Two priority targets have been flagged for follow-up drill testing. Both targets display complex folding and generally correlate with a non-magnetic unit in the interpreted lower D’Kar formation. Significant thrusting and possible unit duplication are likely based on disruptions to magnetic units:
- KIT-E-1A is a tightly folded conductor located in a fold nose mapped from high-resolution magnetic data. The target is upgraded by associated anomalous Zn returns in soil sample traverses.
- KIT-E-2A is an open, easterly plunging interpreted anticlinal structure. Proximity to the neighbouring T3 deposit is considered significant for potential mineralisation.
Drill testing of both targets is planned following issue of the Kit-E EMP by the DEA. Initial drilling will be designed to test the stratigraphic relationship between the AEM conductors and mineralisation associated with the D’Kar – Ngwako Pan formation contact. Based on these results the AEM modelling can then be used to guide a target focussed drill programme.
Images illustrating the AEM interpretation and the location of the two priority targets can be viewed in the KML circular available via the following link https://bit.ly/2kuMZTu.
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.
