# Q&A with Metal Tiger PLC: Botswana Copper/Silver project update (LON:MTR)

- Link: https://www.directorstalkinterviews.com/qa-metal-tiger-plc-botswana-copper-silver-project-update-lonmtr/412753019
- Published: 2018-06-18T11:21:00+01:00
- Author: Amilia Stone

**Metal Tiger PLC** (LON:MTR) Chief Executive Officer Michael McNeilly caught up
with DirectorsTalk for an exclusive interview to discuss their recent update on 
the Botswana Copper/Silver project.

 

**Q1: We’ve just seen the update regarding the joint venture with MOD Resources,
what can you tell us about the results?**

**A1**: There’s over 90 metres of visible copper minerals and you’re looking at 
the exact sort of same copper mineral that we have over at T3, so you’ve got chalcopyrite,
bornite and chalcocite and they’re occurring within numerous quartz/carbonate veins
and what’s incredibly exciting about this is it’s matching with the EM geophysics,
what we call the ‘T3 Marker Unit’.

So, it’s obviously only the first drill hole and there’s several more drill holes
to come, there a planned 60 drill hole programme at the T3 Dome where there’s 7 
domes we’re targeting and other targets as well. If further holes continue to match
with the EM targeting, then it’s incredibly positive and it proves that the exploration
techniques are working to identify copper. Obviously, I have to caveat that with
we haven’t assayed these yet but obviously the widths are encouraging and the fact
that we’re hitting visible copper mineralisation is incredibly encouraging.

So, it’s a very positive announcement, it’s early days yet and it’s only the first
of 7 varied domes so it’s one of these things where it’s going to have incredible
value for anybody exploring in the belt, including our recent investment into Kalahari
Metals where, obviously, we’re looking to do advanced high-resolution aero MAG and
eventually, AEM. So, if the interpretation of the AEM identifies interesting targets
then hopefully at that end of the belt there will also be a very good way of intercepting
copper mineralisation if it’s there.

 

**Q2: So, what does the result of this drill hole mean for the rest of the campaign?**

**A2**: Clearly, for the rest of the company as I already mentioned there’s cross
over with Kalahari Metals the recent investment, but also in terms of our 30% stake
exploration success, proving that there’s more copper out there, it’s still very
early days. What we need to do is get to the stage where we’re hitting more visible
copper mineralisation and that the assays are coming back with grades that are high
enough to justify defining a resource and potentially something that would move 
to a scoping study. So, it’s still very early days but that’s where we are, and 
you couldn’t ask for better initial results.

 

**Q3: Do you think this further de-risks the project?**

**A3**: As far as I view it, the T3 project in itself is already very de-risked,
it’s already had a PFS published on it and it’s moving to DFS now and whether you’ve
had any exploration success, there’s already a huge amount of value in T3.

In terms of de-risking, I think it adds value, exploration is always risky, always
spending money in the hope that you find economic deposits. What this does in terms
of de-risking it is it’s proving that the methodology for finding copper could work
again, it’s only the first drill hole, it matches perfectly so we’ll know if further
drill holes continue to match, in theory it should continue to work over the other
domes that the joint venture is looking to drill.

So, in that sense, yes, I would say it’s de-risking the project.

 

**Q4: When might investors expect more news on drilling of the T3 Dome complex?**

**A4**: They’re currently drilling the A9 target and I believe they’ll be looking
to deploy further drill rigs on to this A4 target and then they’ll also be looking
to move drill rigs onto the A1 target. You’re getting anywhere from 30-45 metres
a day, sometimes less depending on how deep the hole is and conditions, but I’d 
be hopeful that there’d be more news flow in the next month or so.

 

**Q5: Just looking back from Metal Tiger’s initial investment in MOD, has the project
developed how you would expect?**

**A5**: Absolutely. In terms of the initial investment, if you look at the see-through
value of our 30%, as a component of MOD’s 70%, and grossed it up, obviously there’s
no materialisation of that value but in terms of that simple market value, clearly,
it’s worth a lot more than what it’s being held at cost on our balance sheet.

So, you could not ask for more in terms of the amount of money we committed to get
the 30% and then obviously MOD have been incredibly slick operators, the drilling
costs are incredibly cheap, and they’ve been very efficient. Where we’ve fallen 
short, which has been fixed now, is obviously on these environmental management 
permits but I think that process is now well understood and well underway at T20.

So, we should be looking to get more ground which we can drill, and obviously the
contractors that MOD are using in discovery are very efficient and MOD have now 
got a very good handle, so I think things will move a lot quicker. We also have 
a sample prep lab on site at what’s called The Barn where the core shed is, the 
offices for the operating company.

So, it’s certainly progress how I would have expected, obviously there was a period
of time where we had delays and we weren’t able to drive, that obviously is no longer
the case, and there’s more than enough targets for the time being to keep everybody
very very busy.

Of course, the DFS work continues at pace and we’re targeting Q1 next year to be
able to deliver that. As well, there’s a resource update from all the infill drilling
that’s already completed at T3 that we’re hopeful will improve the economics of 
the project in due course.

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