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Spanish Gold & Tungsten - Exploration Summary

RNS Number : 7764I
Metal Tiger PLC
30 March 2015
 

Metal Tiger Plc

("Metal Tiger" or the "Company")

 

Spanish Gold & Tungsten - Exploration Summary

 

Metal Tiger (LON: MTR), the natural resources investing company is pleased to provide shareholders with a summary of the exploration that has been undertaken to date in respect of the Logrosan Gold and Tungsten project in Extremadura, Spain. 

 

Highlights:

 

·     Summary of historic exploration, demonstrates significant historic information gathering and presence of gold and tungsten mineralisation;

 

·     Assessment of geological setting at Logrosan, combined with recently gathered exploration data, has informed the 2015 exploration plan;

 

·     2015 exploration plan outlined with three specific project targets identified;

 

·     Further regular news updates to follow as ground exploration proceeds.

 

 

Cameron Parry, Metal Tiger plc CEO said "Metal Tiger is delighted to update investors as promised with a summary of historic exploration and related data for the Logrosán Project in Extremadura, Spain.  As readers will establish this project has already been the subject of material ground exploration and the initial findings are highly interesting and the reason why Metal Tiger has invested in this Joint Venture opportunity.

 

The Company Chairman Terry Grammer will be back on the ground in Spain next week to work with the local team with regard to the 2015 exploration programme and we look forward to bringing a regular feed of news and developments as this work continues."

 

 

Logrosan Minerals Limited Exploration Status Summary

 

Logrosan Minerals Limited is a special purpose joint venture vehicle held by Metal Tiger PLC (MTR) and Mineral Exploration Network (Finland) Ltd (MEN).  Metal Tiger has the right to earn into 50% of Logrosan Minerals Limited by investing €500,000 to support exploration activities during 2015.

 

Logrosan Minerals Limited is the operating company for the Logrosán Exploration Project ('the Project'). The Mineral Exploration Network group is a fast moving low-cost exploration project developer and incubator with a portfolio of exploration holdings in Spain and Finland.  The Project joint venture consists the most advanced and currently prospective of the MEN Spanish holdings, with detailed soil geochemistry, stream sediment and ground geophysics coverage defining significant tungsten and gold exploration targets.

 

Location, Mineral Tenement and Land Tenure Status

 

The Logrosán Project, is located in a geologically prospective, under-explored and mining friendly jurisdiction in west-central Spain within the province of Cáceres in the Extremadura autonomous region.  The Project is served by a well-developed and maintained road network, with good power, water and telecommunications infrastructure and enjoys the full support of the regional and local government and administration.

 

The Project covers an area of 258.37 km2 consisting of the Antonio Caño Exploration Licence) exploration license and two additional exploration applications pending (San Cristóbal and Zorita). The three concessions are adjacent and contiguous, see Table 1 for licence details.

 

Table 1: Details of Logrosan Minerals Limited Exploration Licences

 

Asset

Holder*

Interest

Status

License Expiry Date

License Area (km2)

Comments

Antonio Caño Exploration Licence (#10314-00)

Logrosan Minerals Limited

100%

Exploration

1 December 2016

88.61

Renewable three times to a maximum of 9 years

San Cristóbal

Logrosan Minerals Limited

100%

Exploration

Award pending

63.80

Renewable to max. 9 years

Zorita

Logrosan Minerals Limited

100%

Exploration

Award pending

105.96

Renewable to max. 9 years

* Licences and Applications held in personal name of MEN Chief Geologist with rights assigned to Logrosan Minerals Ltd and licenses/applications above to be transferred to Logrosan Minerals Ltd wholly owned Spanish subsidiary company as soon as practicable.

 

Exploration Undertaken by Previous Parties

 

MEN commenced work on the Logrosán Project in October 2013 following a detailed target area assessment. Key factors which contributed to the selection of the area were; the availability of high quality regional geological survey data showing prospective geology and structure; known gold occurrences within the area; a long history of mining activity in vicinity and surrounds; and a pro-mining regional administration, with a fast and transparent licence application and approval process. 

 

There had been little systematic exploration in the area since the early 1980s gold price peak.  

 

Exploration work undertaken to date includes collection and analysis of 41,784 soil samples, 2,147 line kilometres of ground magnetics geophysics, 16 line km of induced polarisation (IP)/resistivity electromagnetic tomography and 327 stream pan concentrate samples.  These samples evidence the presence of tungsten and gold.

 

Neighbouring Properties

 

There are three public listed exploration and pre-production development companies located within the surrounding region. The W Resources Plc La Parrilla tungsten mine is 43km south-west of the Project area; the Emerita Resources Corporation Las Morras Gold Project is 6km to the south; and the Berkley Resources Plc Gambuta uranium deposit is 40km north.

 

Historical Mining

 

There is long history of mining in the Logrosán area, with known workings for tin, tungsten, copper, iron and phosphate. In the centre of the Project area, associated with a prominent intrusion, are surface tin workings which have been dated as being active from the Bronze Age through to Romano-Celtic times. The Romans also mined gold and silver in the wider region. There are six historical mines located within or close to the Project concessions, the last of which mined Phosphate and was closed in the 1940s.  A number of small scale mine workings and mineral trials have also come to light during the MEN exploration work.

 

Geology

 

The Project area is located within the inner zone of a complex Precambrian to Tertiary age multi-stage volcanogenic ring complex.  This complex is associated with a north-west striking regional thrust belt and a corridor of intersecting south-west orientated faults. The exploration model is for intrusion related veins, sheeted veins, dikes, skarn and replacements with gold, tungsten and base metal mineralisation.  The centre of the Project area is dominated by a mica-granite intrusion which forms the San Cristóbal mount, this is surrounded by undifferentiated shale and greywacke. Large structures can be seen to cross the region as evidenced by the topography and, within the Project, by MEN's geophysics.

 

Exploration Work Methodology

 

The exploration work is undertaken by a core crew of four geology graduates who work under the direction of the Chief Geologist who has over 33 years' experience in mineral exploration.  The exploration work is carried out in line with standard best practices, with an emphasis on covering ground quickly and cost efficiently.

 

Soils sampling is undertaken on a 200m or 100m grid with 20m sample spacing.  All soil samples are analysed in the field by using an InoveX Alfa XRF; once an area is completed a decision is made whether to further analyse samples with a laser ablation ICP-MS in the MEN laboratory in Finland.  A selection of soil samples are externally analysed by ALS Laboratories in Seville. The work is undertaken to defined QA/QC procedures.

 

Panned concentrate sampling is employed to determine the presence and distribution of gold. Stream sediment samples were systematically collected from streams and drainage channels across the Project area, these each consisted 20 litres of  sediment material panned down to a concentrate.  The concentrate is visually inspected and the number of gold flakes counted. A selection of gold flakes are photographed using a microscope to determine their size and morphology, with a sub-set of flakes subject to micro-probe analysis.

 

Ground magnetic geophysics is undertaken on a 100m grid with 2m survey points, using Geometrics (G-859 & G-856) magnetometers, and the IP/Resistivity geophysics is undertaken using a 4 electrode (ALFA-12) system.

 

Initial Exploration Results

 

The results of the initial exploration works are catalogued for interpretation in a geographical information system (GIS).  The geochemical results and geophysics are plotted and show areas of elevated, lead, zinc, tin, arsenic and tungsten in soil; these have good correlation with each other and with perceived structures interpreted from the geophysics.  Gold in pan concentrate also correlates well with the base metal and arsenic anomalies. Interpretation has delineated six target areas for detailed investigation, with targets 1 to 3 prioritised for the planned 2015 JV exploration programme.

 

Target 1 constitutes an isometric arsenic anomaly 2.4km by 1.5km elongated in NS direction, cut by a linear Pb-Zn anomaly (NNE orientation) with pan-concentrate gold flakes elevated on the eastern flank of the arsenic anomaly. Selected soil samples from the most intense part of the As anomaly have been analysed by ALS Laboratories, demonstrating the arsenic coincides with tungsten.  Study of the gold flakes in this area show two different generations of gold with grain sizes varying up to 2.5mm in diameter, and a generally angular form (suggesting proximity to source).

 

Target 2 is characterised by four sub-parallel tungsten anomalies (in an area 1.2km by 1km) superimposed over an arsenic anomaly and structures interpreted from the magnetic geophysics. Channel sampling in a trench cross-cutting one of these anomalies has confirmed hard-rock tungsten mineralisation ranging 581-1805ppm.

 

Target 3 is represented by a complex As-W-Sn anomaly. During the period 1940-60 it is reported that artisanal miners extracted alluvial scheelite and cassiterite in this area. There are also remnants of underground workings and ore crushing facilities on the slopes of the hill, but no official mining records are in existence.

 

Mr Nick O'Reilly (MSc, DIC, MAusIMM, FGS), a qualified geologist who meets the criteria of a qualified person under the AIM Rules - Note for Mining and Oil & Gas Companies, has visited the Project Area, and reviewed the technical information contained within this announcement.  Mr O'Reilly is a consultant working for Mining Analyst Consulting Ltd which has been retained by Metal Tiger PLC to review the work undertaken on the Logrosán Exploration Project.

 

For further information on the Company, visit: www.metaltigerplc.com:

 

Cameron Parry
(CEO)


Tel: +44 (0)207 099 0738

Paul Johnson
(Executive Director)


Tel: +44 (0)7766 465 617

Sean Wyndham-Quin
Neil Baldwin

Spark Advisory Partners Limited
(Nominated Adviser)

Tel: +44 (0) 2033 683 555




Notes to Editors:

 

Metal Tiger Plc is a natural resources focused investing company listed on the London Stock Exchange AIM Market ("AIM") with the trading code MTR and two investment divisions, Direct Equities and Direct Projects. 

 

The Direct Equities division invests in listed natural resource explorers and developers, with a combination of shares and warrants providing a potential non-debt financing instrument and enhanced return potential.  The Direct Projects division invests in operational mineral exploration projects with current investments in Spanish Gold & Tungsten, Thai Gold, Copper & Antimony, and Tanzanian Gold and Uranium.  The Direct Projects investment division also has working collaborations to identify new investment opportunities in Russia (platinum focus) and Turkey (gold focus), in association with experienced in-country partners.

 

Metal Tiger's target is to deliver a high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector timed to coincide where possible, with a cyclical recovery in the exploration and mining markets.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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