Michael McNeilly, Chief Executive Officer of Metal Tiger plc, commented:
“We are pleased to provide an update for the exciting KML Project in Botswana. The planned Phase 1 work programme has been completed as planned and ahead of schedule with the completion and interpretation of the airborne geophysics survey work.
The state-of-the-art Layered Earth Inversion modelling technique employed on the Phase-1 Airborne Electromagnetic survey data has greatly added to our understanding of the buried geology of the licence areas. This innovative 3D modelling method has enabled the visualisation of potentially mineralised hidden structures and geological contacts, accelerating the exploration process and fast tracking the identification of areas for further follow-up as potential drill targets.
The completion of the Phase 1 work programme coincides with KML meeting the first half of the Stage-1 Earn-in agreement with Triprop and MTR electing to exercise our option to increase our holding in KML to 34%. Details of the follow-on Phase 2 work programme are currently being reviewed, details of which we expect to communicate shortly.”
Metal Tiger plc (LON:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, today provided an update regarding Kalahari Metals Limited copper-silver exploration progress.
Highlights
KML 2018 Phase 1 Exploration Programme completed to plan and on schedule.
Drilling at the Ngami Copper Project to be allowed to proceed under an Environmental Management Plan (EMP) as agreed with the Botswana Department of Environmental Affairs. KML is progressing the EMP currently.
Results from the Phase-1 Aerial Electromagnetic (AEM) geophysics survey and Layered Earth (LE) inversion modelling, for both the Ngami Copper Project (NCP) and Okavango Copper Project (OCP) licence areas, has generated numerous ‘dome style’ exploration targets analogous to the MOD Resources T3 Deposit.
Geophysics modelling has also identified over 340km of potentially mineralised geological contact which will be prioritised for higher-resolution follow-up work prior to drill testing.
As per the KML Investment Agreement (announced 6 June 2018) MTR have elected to exercise the Option to take MTR’s total shareholding in KML from 18% to 34% for a consideration of US$500,000.
Triprop Holdings (Pty) Limited (“Triprop”) have confirmed to KML that over half of the required US$600k Stage 1 Earn-In Expenditure has now been met. KML need to expend a further circa US$292k, through funding a planned Phase 2 Work Programme, in order to issue Exercise Notice for the subscription of 51% of the enlarged share capital of Triprop.
We recommend that readers also refer to the below linked version of this news release which includes informative images showing the geophysical interpretations:
https://www.metaltigerplc.com/kalahari-metals-limited-airborne-geophysics-interpretation-drill-permission-update
Further Details:
Triprop Earn-In Progress
The terms of the KML binding earn-in agreement with Triprop (the “Earn-in”) were set out in full by the MTR announcement of 6 June 2018. Triprop hold 5 granted exploration licences arranged as two separate blocks of ground with a combined total area of 2,067 km2.
KML have the right to earn-in to up to 80% of Triprop through completion of the Stage 1 and Stage 2 earn-in, followed by a right to purchase the remaining 20% of Triprop at an independent valuation.
Under the Stage 1 Earn-in KML are to incur US$600,000 in respect of agreed work programmes and budgets, within a 1-year period, in return for the issue of new ordinary shares totalling 51% of the Triprop enlarged share capital.
As of 19 October 2018, KML had expended a total of US$307,842.33 of the US$600,000 Stage 1 Earn-in.
KML Investment Status
The terms of the KML Investment Agreement with MTR were set out in detail in the MTR announcement of 6 June 2018.
MTR have the right to acquire up to 50% of KML for a total consideration of US$1.6 million split into three Options. Option one (completion option) was satisfied upon agreement signing resulting in MTR holding 18% of KML.
MTR have now elected to exercise the second option to bring the total holding in KML to 34% for a total consideration of US$500,000 cash. This cash will contribute towards the funding of a planned Phase 2 Work Programme.
Environmental Permitting
Botswana Department of Environmental Affairs have agreed that drilling can proceed on the Ngami Copper Project under an EMP. The timeframe to complete the EMP process is normally 4 months.
The Okavango Copper Project will require a more detailed Environmental Impact Assessment (EIA) to be produced prior to permission to drill being granted. The timeframe to complete the more detailed EIA process, through to grant, is normally 9 months.
The reduced timeframe for an EMP application should place KML in a position to start to test drill new copper targets at the end of Q1 2019.
Phase-1 Airborne Geophysics Survey Details
Geophysics programme was designed to constrain structural models and identify potential anticlinal dome settings for T3 Deposit style copper-silver mineralisation.
The AEM survey was flown at two resolutions;
Regional survey, 4km-line spacing, designed to map Kalahari cover thickness, saline water effects and key conductive marker units in the Lower D’Kar Formation directly above the target mineralised redox boundary; and
Detailed survey, 400m spacing, over an interpreted fold hinge zone derived from the magnetic data interpretation.
The objective of the regional scale survey was to prioritise areas for detailed follow-up in a second phase of AEM survey, these can be delineated with confidence using the regional data as a guide.
Geophysics Survey Preliminary Interpretation
The high-resolution magnetic survey data (75m spacing) for the OCP has provided a detailed map of Kalahari Copper Belt stratigraphy under Kalahari cover and between NNW trending Karoo dyke swarms.
Evidence of cross-cutting structures, particularly perpendicular demagnetised structures, are clearly apparent in magnetic derivative products, potentially highlighting more prospective areas along the potentially mineralised Ngwako-D’Kar Formation redox contact.
Layered Earth (LE) Inversion modelling has proved pivotal in the interpretation of the AEM survey data:
LE models appear to map out key conductive marker units in the Lower D’Kar Formation directly above the target mineralised redox boundary;
At the OCP it has identified conductive marker units which appear to correlate with the target redox contact and a compelling fold structure in the eastern part of the survey area which provides a priority “dome target”; and
At the NPC modelling of the 2km spaced AEM data has effectively mapped several anticlinal structures expanding on targets identified in a re-interpretation of previously obtained high-resolution magnetic data.
Priority follow-up target areas have been interpreted from areas where potentially mineralised contact appears within shallow anticlinal hinge zones (analogous setting to the T3 Deposit).
Project Background
KML holds interests in seven highly prospective exploration licences covering 4,063km2 in the Kalahari Copper Belt, consisting of two 100% owned exploration licences and five exploration licences subject to a binding earn-in agreement with Triprop Holdings (Pty) Limited (“Triprop”). KML have also entered into an exclusivity period with Resource Exploration and Development Limited to undertake due diligence with a view to acquiring an additional 5 licenses, totalling 4,661 km2, in Botswana (announced 20 August 2018). Under an investment agreement MTR have the right to acquire up to 50% of KML (announced 6 June 2018) giving MTR further exposure to largely unexplored ground, adjacent to significant recent discoveries in the highly prospective Kalahari Copper Belt.
