Michael McNeilly Chief Executive Officer of Metal Tiger commented:
“We are delighted to report a substantial Resource upgrade for the T3 Open Pit deposit. The revised Resource prepared by CSA Global, the well-respected independent resource consultants, has exceeded the JV expectations. The T3 Project Team is now assessing how the Resource increase will impact on the T3 Open Pit mine economics, with potential that mine life and production could be extended beyond the, 28ktpa Cu over 12 years, US$1.1B EBITDA, Expansion Case Open Pit model from the Prefeasibility Study.
Metal Tiger plc (LON:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, has today provided an update regarding the Company’s Joint Venture project with partner MOD Resources Limited (ASX:MOD) (“MOD”) in the Kalahari Copper Belt in Botswana (70% MOD Resources/30% Metal Tiger).
Highlights:
Total Mineral Resource Estimate for T3 now upgraded to 60Mt @ 0.98% Cu & 14g/t Ag (0.4% Cu cut-off) for a contained 590Kt copper and 27Moz silver metal.
44% increase in contained copper verses previous Resource (24th August 2017), at a 0.4% Cu cut-off.
46% of revised Total Resource now classified as higher confidence Indicated Mineral Resource (0.4% Cu cut-off).
At 0.5% Cu cut-off, 31% increase in Total Resource tonnes to 47Mt with 30% increase in contained copper (total 531.5Kt Cu), compared to previous Resource.
Significant increase in copper grades at higher cut-offs; revised Resource has increased from 1.43% Cu to 1.97% Cu at 1.0% Cu cut-off.
Upgraded Resource appears to support (or potentially exceed) the Expansion Case Open Pit model in the Prefeasibility Study (31 January 2018).
Drilling ongoing to extend high-grade underground potential outside of planned T3 Pit.
With drilling continuing within the wider T3 Dome Complex we are hopeful that further significant copper deposits might be discovered within similar buried domes, and we look forward to reporting further exciting results.”
This announcement coincides with an update released today by MOD which can be viewed through the following link:
http://search.asx.com.au/s/search.html?query=mod&collection=asx-meta&profile=web
T3 Deposit Resource Upgrade
T3 Mineral Resource Estimate (MRE) upgrade follows on from a 90-hole infill and extensional diamond core drilling programme around and within the planned T3 (Motheo) Open Pit. Programme also included holes to test for underground mining potential outside of the planned open pit.
MRE prepared by independent resource consultants CSA Global.
Increase in revised Resource combined with the greater proportion in the Indicated Resource category is expected to impact both T3 life of mine and annual production rate compared with current Prefeasibility Study model (announced 31 January 2018).
Design through-put of T3 Process Plant will be reviewed ahead of commencing Feasibility Study process engineering. T3 Project Feasibility Study remains on-track for completion at the end of Q1 2019.
Revised T3 MRE at 4 different copper cut-offs outlined in Table 1 below:
| JORC Category | Cut-off
Cu% |
Tonnes | Grade
Cu% |
Grade
Ag g/t |
Contained
Cu (Kt) |
Contained
Ag (Moz) |
|||||||
| Indicated | 0.25 | 34,544,000 | 1.13 | 16.00 | 391.5 | 17.39 | |||||||
| 0.40 | 27,897,000 | 1.32 | 18.00 | 369.3 | 16.46 | ||||||||
| 0.50 | 22,636,000 | 1.53 | 22.00 | 345.8 | 15.68 | ||||||||
| 1.00 | 14,004,000 | 2.07 | 32.00 | 290.1 | 14.25 | ||||||||
| 1.50 | 10,949,000 | 2.29 | 36.00 | 250.5 | 12.60 | ||||||||
| Inferred | 0.25 | 43,163,000 | 0.60 | 9.00 | 257.1 | 12.75 | |||||||
| 0.40 | 32,259,000 | 0.69 | 10.00 | 221.0 | 10.43 | ||||||||
| 0.50 | 24,388,000 | 0.76 | 11.00 | 185.7 | 8.48 | ||||||||
| 1.00 | 3,661,000 | 1.57 | 21.00 | 57.4 | 2.52 | ||||||||
| 1.50 | 1,654,000 | 2.04 | 29.00 | 33.7 | 1.55 | ||||||||
| TOTAL | 0.25 | 77,706,000 | 0.83 | 12.00 | 648.6 | 30.14 | |||||||
| 0.40 | 60,155,000 | 0.98 | 14.00 | 590.4 | 26.90 | ||||||||
| 0.50 | 47,023,000 | 1.13 | 16.00 | 531.5 | 24.17 | ||||||||
| 1.00 | 17,665,000 | 1.97 | 30.00 | 347.6 | 16.77 | ||||||||
| 1.50 | 12,602,000 | 2.25 | 35.00 | 284.2 | 14.16 |
Background information on the T3 Project
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 1,000km2), which is the focus of rapidly increasing exploration activity undertaken by the JV. 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 Phase 2 drilling at the T3 Copper/Silver Deposit commenced on 7th August 2017, with approval granted for the recommencement of both diamond core (DC) and reverse circulation (RC) drilling at the T3 Project and its vicinity, through to December 2018. This included 90 diamond core drill holes designed to infill the Resource and test for possible extensions. The objective of the infill program is to increase geological confidence and upgrade categorisation of the T3 Resource. The programme also included grid drilling to investigate the potential for an underground Resource down-dip and along strike from the planned open-pit, and to investigate geophysical targets. Drilling approval has been granted for the wider T3 Dome with the acceptance of the T3 Dome EMP announced on 3 April 2018.
The results of the T3 Open Pit Pre-Feasibility Study were announced on 31st January 2018 and the revised and upgraded T3 Copper/Silver Deposit Mineral Resource Estimate was announced 2nd July 2018.
The T3 Open Pit Feasibility Study, towards a decision to mine, is currently underway.
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.
In addition to its 30% interest in the JV, Metal Tiger holds 13,880,042 MOD shares, equivalent to 5.996 % of MOD’s issued share capital and 154,167 MOD options each exercisable price of 6 cents (Australian) on or before 15 April 2019.
