RFC Ambrian Comment: Metal Tiger PLC

Copper Mineralisation in First Hole Drilled at A4 Target within the T3 Dome Area

Metal Tiger and JV partner MOD Resources have announced that the first hole drilled at the A4 Target on the T3 Dome has intersected multiple traces of visible, vein-hosted copper mineralisation. Numerous quartz carbonate veins were reported to have been intersected with traces of fine to coarse grained copper sulphides from 360-450m down-hole. The mineralisation was hosted in sediments below the interpreted T3 Marker Unit.

COMMENT: This announcement is yet another reminder of the prospectivity of the exploration package that the JV controls along 200km of the Kalahari Copper Belt. The A4 Target is one of many drill targets that have been identified from an airborne EM survey that are planned to be tested on the larger, 60km long T3 Dome structure. We await the announcement of assay results from the programme with interest.

Five rigs will soon be in operation to test these targets. The company has also applied for the permits required to commence drilling on the large, 70km long T20 Dome area to the south-west of the T3 Dome area. The company has pushed out the expected start date of drilling from August to September.

A large number of copper occurrences have been discovered in the Kalahari Copper Belt near the geological contact between a package of shales/siltstones and the underlying sandstones. Although we anticipate the discovery of additional, possibly widespread, copper mineralisation in this environment, we believe the real prize would be the discovery of deposits that have been the beneficiary of the structural preparation that resulted in the development of wider-than-usual, high-grade mineralisation at deposits such as the JV’s T3 deposit and Cupric Canyon’s Zone 5 deposits. With a large number of well-defined targets to be tested this year, we are optimistic about the programme’s potential to deliver another discovery.

At the company’s 30%-owned Kalahari Copper JV with MOD Resources, the completion of the DFS on the main T3 Copper Project has been pushed back from the end of the year into 1Q19. This is also planned to include a scoping study into the development of an underground operation at the main T3 deposit.

We reiterate our Buy rating and target price (TP) of 3.6p. The company’s current market cap is equivalent to approximately US$39m and our TP is based on a risked SotP value of US$49m. This comprises US$13m of cash and investments, an adjustment of US$15m for corporate overheads, US$10m for the company’s other interests and a risked value of US$41m for its 30% interest in the Kalahari Copper JV.

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