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Metal Tiger plc Kalahari Metals Limited – Exploration Update

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 currently holds 59.81% of the issued share capital.

As announced on 31 May 2019, Metal Tiger invested a further US$1.1m in KML in order to fund KML’s first round drilling at both the Okavango Copper Project (“OCP”) and Ngami Copper Project (“NCP”). Following approval of the Environmental Management Plan (“EMP”) for the OCP by the Botswana Department of Environmental Affairs (“DEA”), drilling rigs are able to mobilise to priority targets within the OCP licence area following completion of the current diamond drill programme, which is in progress at the NCP (as announced on 23 May 2019).

With regard to Kitlanya West (“KIT-W”) and Kitlanya East (“KIT-E”), an airborne electromagnetic (“AEM”) geophysical survey is currently being flown over the project areas. The airborne work is nearing completion with the processed data and interpretation expected in September 2019.

A soil geochemical sampling programme is currently underway at KIT-W, which consists of a number of focussed traverses over interpreted anticline targets, with approximately 1,200 of a planned 3,300 samples having been collected to date. The samples will be analysed using both X-ray fluorescence (XRF) spectroscopy and low concentration TerraleachTM partial digest methods, in order to detect more subtle anomalies associated with mineralisation under thicker Kalahari Group cover.

KML has also submitted EMPs to the DEA for both the KIT-W and KIT-E project areas, when approved they will allow work to progress to drilling where warranted, subject to funding.

Michael McNeilly, Chief Executive Officer of Metal Tiger plc, commented:

“We are delighted to provide an update on KML’s exploration progress in Botswana. The authorisation of the environmental impact statement for the Okavango Copper Project will allow the drill rigs to mobilise over from the Ngami Copper Project upon completion of the current diamond drilling programme, which is progressing well. The concurrent airborne geophysics and soil sampling programmes within KML’s Kitlanya West and Kitlanya East project areas should help build the pipeline of copper targets further, with permitting underway to allow follow-on drill testing of prospective new copper targets within these areas in due course.”

Airborne Electromagnetic Survey Details

The AEM geophysics programme which includes both detailed and regional scale survey work is being flown by experienced South Africa based contractors, New Resolution Geophysics, which is utilising its 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.

The detailed survey is being flown at 200m line spacing over the northern priority target in KIT-E and has been designed to map conductive marker units in the lower D’Kar Formation. Results will be used to site drill holes into this prospective target situated 6km south of the MOD Resources’ T3 copper deposit.

The regional survey flown at 2km line spacing over the KIT-W project area has been designed to assist with mapping of Kalahari Group cover thickness and interpretation of anticline structures identified in magnetic data. Results will be combined with the current soil geochemical sampling programme results and historical airborne geophysical data to prioritise potentially mineralised fold hinge targets.

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, consisting of 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”), which are 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 in KML to 59.81%, however, this will reduce to 53.17% upon completion of KML’s purchase of Kitlanya, as announced on 10 April 2019. The acquisition of Kitlanya by KML is conditional on change of control consent being obtained in Botswana. 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.