Metal Tiger plc (LON: MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, has today provided an exploration update for Kalahari Metals Limited, in which Metal Tiger owns 50% of the issued share capital.
Following approval of the Environmental Management Plan for KML’s Ngami Copper Project, by the Botswana Department of Environmental Affairs, gazetting of the EMP has now been completed, thereby allowing the commencement of diamond drilling at NCP.
A drilling contract has been awarded to OreZone Drilling of Botswana, with mobilisation scheduled for the first week of June 2019. This first phase of diamond drilling, with an initial 2,100m planned, will test priority fold hinge targets at NCP, after which the rig is planned to move onto KML’s Okavango Copper Project, subject to EMP approval (see announcement 3 April 2019).
Pursuant to the earn-in agreement with Triprop Holdings Limited, KML has now completed its first stage of exploration expenditure, which, subject to change of control approval from the Ministry of Mines of Botswana, will result in KML being awarded a 51% shareholding in Triprop.
Michael McNeilly, Chief Executive Officer of Metal Tiger plc, commented:
“We are delighted to report that KML is now in a position to commence drilling at the Ngami Copper Project, having received the requisite environmental permitting and appointed a Botswana drilling contractor. With Phase 1 drilling to commence in early June on three initial targets constituting prospective structural and geochemical anomalies, we are looking forward to moving the project up the value curve. Intersecting the mineralised contact in these early stage exploration holes will provide support for the target generation methodology, which we believe will justify a more aggressive follow-on drill programme to fully evaluate the potential of each of the targets.”
NCP Drill Plan
A series of holes have been designed to map the stratigraphy and composition of the underlying geology and to identify the mineralised D’Kar – Ngwako Pan contact, located below folded marker conductors modelled from recently completed airborne electromagnetic (‘AEM’) surveys. Three compelling targets have been identified in the AEM data, with support from high resolution magnetic data and low concentration partial digest geochemistry.
Target A: Easterly plunging anticline with tight hinge clearly defined in AEM modelling, with potential to host D’Kar – Ngwako contact mineralisation. A single stratigraphic hole is planned to test this target.
Target B: Easterly plunging fold hinge with preserved D’Kar – Ngwako contact modelled from AEM data. Results correlate well with magnetic data interpretations. Associated Cu, Pb and Zn anomalies in soil samples further prioritise this target. Three holes are planned to test this target.
Target C: Based on AEM modelling, lower D’Kar units and underlying mineralised contact appear to be preserved in an easterly plunging anticline along strike from drill tested Cu-Ag mineralisation. The anticline hinge provides an ideal trap-site for upgrading of drill-tested mineralisation on anticline limbs. Four holes are planned to test this target.
KML holds interests in 12 highly prospective exploration licences covering a total area of 8,724km2 in the Kalahari Copper Belt, consisting of two 100% owned exploration licences, five exploration licences subject to a binding earn-in agreement with Triprop Holdings (Pty) Limited and five exploration licences subject to an agreement with Resource Exploration and Development Ltd.
Under an investment agreement, announced on 6 June 2018, Metal Tiger owns 50% of KML, providing Metal Tiger with further exposure to a largely unexplored area, adjacent to significant recent discoveries in the highly prospective Kalahari Copper Belt. As announced on 10 April 2019, KML has entered into a binding agreement with RED to purchase 100% of Kitlanya Ltd. Post completion of the acquisition, 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, Metal Tiger’s interest in KML will be diluted to approximately 43.9%. In addition, on completion of the acquisition, the previous agreement between RED and KML will terminate.