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Initial Drill Assays Confirm Tungsten - Spain

RNS Number : 2955O
Metal Tiger PLC
27 May 2015
 

METAL TIGER PLC

27 May 2015

 

 

Metal Tiger plc

("Metal Tiger" or the "Company")

 

Initial Drill Assays Confirm Tungsten Mineralisation - Spain

 

Metal Tiger (LON: MTR), the natural resources investing company is pleased to provide an update on drilling progress and announce delivery of the first series of assay results for the Logrosán Gold and Tungsten Joint Venture project in Extremadura, Spain.    

 

Highlights:

 

  • Exploration activities under Joint Venture ("JV") progressing well;
  • €150,000 injected by Metal Tiger to date (able to invest up to €500,000 for 50% JV earn-in interest);
  • Tungsten mineralisation confirmed by initial assay results;
  • 563m of the planned 5,000m (11%) drill programme complete;
  • 31 holes completed to date;
  • First batch of External Assay results received from ALS Minerals, for first 6 holes;
  • Positive results with intersections up to 0.20% WO3, including:
    • LM001 intersected a drilled width of 2m @ 0.15% WO3 from 19.57m.
    • LM002 intersected a drilled width of 2m @ 0.16% WO3 from 3.15m and 2m @ 0.20% from 5.15m (an un-weighted average of 4m @ 0.18% WO3).

 

Cameron Parry CEO of Metal Tiger stated: "It is exciting to be able to report the first set of findings from Metal Tiger's portfolio of Direct Projects and specifically with regard to the drilling campaign underway at Logrosán, in Extremadura, Spain.

 

The initial focus within this drilling campaign was to identify near surface Tungsten mineralisation and we are delighted to confirm that the work has already achieved this initial objective.  The team on the ground are continuing to drill expeditiously and expand our Tungsten mineralisation knowledge at Logrosán.

 

We look forward to releasing more findings with regard to Tungsten as well as results from the Gold targets in due course."

 

Logrosán - Summary of Progress to Date:

 

The rotary air blast (RAB) drilling programme is progressing well and to plan.  As of end of day, 26th May, a total of 31 holes on 8 profiles have been completed on Target 2, for a total of 563 metres drilled (approximately 11% of the total planned programme).    Holes are inclined to 45 degrees and typically range 20m to 27m in depth. The azimuth of the drill profiles is perpendicular to the perceived mineralised trend. The depth attained by each individual hole is largely constrained by the level of the water table, where the level of water inflow risks the drill tool becoming stuck the hole is terminated.

 

Drill samples are collected over two metre intervals and are riffle split to produce sample for analysis, a duplicate and a sieved course fraction.  Samples are analysed initially using an Inovex XRF (the internal assay); where mineralisation is encountered samples are batch analysed by ALS Minerals laboratory ("ALS") in Seville, Spain (the external assay).

 

Upon receipt at ALS, samples are weighed, crushed, split and pulverised to 85% < 75microns and then analysed using the Trace Level XRF Analysis (ME-XRF05) package, reporting tin and tungsten in parts per million (ppm).  The Tungsten ppm assay is multiplied by 1.2611 to obtain an equivalent WO3 grade which is expressed as a percentage.  The tin ppm assay is multiplied by 1.2696 to give SnO2 equivalent (expressed as %).

 

The first batch of external results consists 28 assays from 6 holes (selected for external analysis from a total of 61 samples).  Significant intersections of tungsten mineralisation were interested in 3 holes located on two profiles, ranging from 0.08% to 0.20% WO3, including hole:

 

·    LM001 intersected a sampled width of 2 metres at 0.15% WO3 from 19.57 metres;

·    LM002 intersected a sampled width of 2 metres at 0.16% WO3 from 3.15 metres and

2 metres at 0.20% from 5.15 metres (for a un-weighted average of 4 metres at 0.18% WO3);

·    LM003 intersected a sampled width of 4 metres at 0.08% WO3 from 13.60 metres.

 

As a guide, the tungsten concentration of workable ores typically starts from  0.1% WO3.  No significant tin intersections were encountered.

 

ALS Minerals is an accredited laboratory, the assay results are certificated and include the insertion of laboratory controls including duplicate, standards and blanks.  A second batch of samples was despatched from site to ALS Seville on 21 May.

 

Background to Logrosán Drilling Programme:

 

The project took delivery of a new Dando Terrier tracked rotary air blast (RAB) drilling rig on Thursday 23rd April 2015.  The planned programme consists up to 5,000m of inclined drilling designed to test surface geochemical and geophysical anomalies at depth.  Drilling will be split between two seasons, April to end June and September to December, with a break over the hottest part of the year.  The Dando Terrier is a compact, track mounted drill rig fitted with a mast dump for inclined drilling up to 45 degrees from vertical.

 

The drilling has commenced on Target 2, an elongated zone of elevated tungsten in soil anomalies and structure identified by ground magnetics.  Holes currently average 20m in depth dependant on specific target and drilling conditions.  A total of 12 drill profiles are planned. Upon completion of the planned profiles infill drilling will depend on results.

 

The method of drilling and sampling is deemed appropriate for the stage and goals of the exploration programme.  The commencement of the drilling programme, the sampling procedures and protocols have been agreed and reviewed on site in conjunction with Metal Tiger's qualified geologist.

 

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 581-1805 ppm.

 

Previous Exploration Work conducted by Metal Tiger's JV partners at Logrosan:

 

Over the past 18 months, Metal Tiger's joint venture partners in Logrosán Minerals Ltd, Mineral Exploration Network (Finland) Ltd, have carried out more than 40,000 soil samples, hundreds of pan-concentrate samples, covered thousands of linear kilometres with ground magnetic survey and assessed electro-magnetic tomography. 

 

The presence of Tungsten mineralisation has been confirmed by soil sampling, outcrop sampling, trenching and historical drill holes.  Gold mineralisation has been confirmed by pan-concentrate and findings to date delineate three significant anomalies, being one square kilometre each. 

 

Background to Joint Venture:

 

Metal Tiger entered into a Joint Venture with Logrosán Minerals Ltd (a Special Purpose Vehicle "SPV" company incorporated in the UK) on 13 March 2015.  Logrosán Minerals Limited is the operating company for the Logrosán Exploration Project. 

 

Metal Tiger is to fund up to €500,000 in exploration work over the balance of 2015 in line with an agreed exploration programme that includes up to 5,000 metres of drilling. 

 

Metal Tiger to be issued with new ordinary shares in Logrosán Minerals Ltd in line with funds injected.  Should Metal Tiger provide the total €500,000 2015 exploration programme funding it will hold 50% of the shares on issue in Logrosán Minerals Ltd.  To date Metal Tiger has expended €150,000 earning in a 15% holding of Logrosán Minerals Ltd.  The balancing holding in the SPV is held by Mineral Exploration Network (Finland) Ltd.

 

Each monthly payment made by Metal Tiger provides the exclusive right to make payment of the other monthly instalments, however it is at Metal Tiger's discretion as to whether it continues to be the sole funder of this amount or brings in co-investors under the same terms as Metal Tiger's equity investment.

 

Should Metal Tiger be the sole investor and make the total €500,000 in payments for equity in the SPV, then Metal Tiger will acquire a total of 50% of the shares of the SPV, at which point it is up to the board and shareholders of the SPV as to how further stages are funded. 

 

The SPV holds 1 granted licence and 2 licence applications for a total area of 238 square kilometres in Logrosán, a municipality of the province of Cáceres in Extremadura, Spain.  The exploration licence ("Antonio Caño", 10314-00) covers an area of 88.85 square kilometres.  The licence was granted on 2 December 2013 for a period of three years.  The "San Cristóbal" and "Zorita" licence applications cover a further area of 148.98 square kilometres adjacent to the "Antonio Caño" licence.

 

 

Mr Nick O'Reilly (MSc, DIC, MAusIMM, FGS), is a qualified geologist who meets the criteria of a qualified person under the AIM Rules - Note for Mining and Oil & Gas Companies, he has visited the Project Area, overseen the drilling and sampling 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

Nick Emerson

Andy Thacker

SI Capital Limited

(Sole Broker)

Tel: +44 (0) 1483 413 500

 

 

Notes to Editors:

 

Metal Tiger Plc is a natural resources focused investing company quoted 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 quoted 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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