Metal Tiger plc (LON:MTR), the London Stock Exchange AIM listed investor in natural resource opportunities, has today provided an update in relation to its investment in Sandfire Resources Limited, which also relates to the Company’s uncapped 2% Net Smelter Royalty, which it holds over circa 8,000km2 of prospective ground, held by Tshukudu Exploration.
Metal Tiger holds 6,351,990 shares in Sandfire representing approximately 3.57% of Sandfire’s issued share capital. As announced on 17 December 2019 and on 20 May 2020, in aggregate, 2,003,923 Sandfire shares held by Metal Tiger, representing approximately 1.125% of Sandfire’s issued share capital are secured under an equity derivative collar financing arrangement with a global investment bank
Sandfire yesterday released the following update in relation to exploration work at Tshukudu:
The Company notes that, in respect of the A4 discovery, located 8km away from the T3 project, and over which Metal Tiger has the Royalty, Sandfire provided the following highlight drill results:
MO-A4-045D: 20.5m @ 3.6% Cu and 88g/t Ag from 78.5m down-hole, cut to 15% Cu
MO-A4-047D: 21.8m @ 2.5% Cu and 57g/t Ag from 74.2m down-hole, cut to 15% Cu; and
14.5m @ 1.1% Cu and 23g/t Ag from 99.5m down-hole
MO-A4-048D: 12.7m @ 1.6% Cu and 33g/t Ag from 76.5m down-hole; and
14.2m @ 1.2% Cu and 23g/t Ag from 109m down-hole
MO-A4-049D: 32.8m @ 1.8% Cu and 32g/t Ag from 94.9m down-hole, cut to 15% Cu, including
17.1m @ 2.6% Cu and 58g/t Ag from 94.9m down-hole, cut to 15% Cu; and
9.6m @ 2.5% Cu and 46g/t Ag from 148.8m down-hole
Other highlights from Sandfire’s announcement were:
- The Botswana Government has announced a phased easing of COVID-19 restrictions due to the relatively low infection rate, and plans are underway for a staged restart of exploration activity that should see resource drilling at A4 resume by early June 2020.
- In-fill and extensional drilling within the A4 resource area remains a high priority, with the objective of defining a maiden Mineral Resource. Newly identified targets to the north-east and south of current drilling at A4 have also been interpreted from Airborne Electromagnetic (AEM) data and are also priorities for drilling.
- Major AEM survey covering 7,750km2 of Sandfire’s Tshukudu licences in Botswana planned to start in the September 2020 quarter, subject to relaxation of COVID-19 restrictions.
Metal Tiger also notes that yesterday Sandfire released an operations update which noted that optimisation of the Feasibility Study for the T3 Copper-Silver Project in Botswana is continuing, focused on mine design and planning, plant engineering, power supply, site infrastructure and operating costs. Sandfire noted that the decision to mine and any subsequent commencement of development activities at T3 has been delayed due to the impact of COVID-19 on global supply chains, tendering and construction activities. In this update Sandfire also reinstated 2020 production guidance for its DeGrussa Operations.
Details of the operations update announcement can be found at the following link:
Michael McNeilly, Chief Executive Officer of Metal Tiger, commented:
“The A4 drilling results continue to impress. We are pleased to note that Sandfire is planning, subject to the relaxation of COVID-19 restrictions, to recommence drilling at the A4 prospect. Should Sandfire obtain a maiden Mineral Resource, as per its objective, this will likely have a material positive impact on the valuation of the Royalty.”