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New Licence Issued and Drilling Update - Spain

RNS Number : 6257R
Metal Tiger PLC
30 June 2015
 

METAL TIGER PLC

30 June 2015

 



Metal Tiger plc

("Metal Tiger" or the "Company")

 

New Licence Issued and Drilling Update - Spain

 

Metal Tiger (LON: MTR), the natural resources investing company is pleased to announce the award of the Zorita Exploration licence that forms part of the Company's Logrosán Joint Venture ("JV") project and to provide an update on the drilling progress for gold and tungsten in Extremadura, Spain.   

 

Highlights:

 

  • Zorita Exploration Licence (No. 10C10332-00) awarded following successful application lodged 1 September 2014.  Licence is valid from 18 June 2015 for a period of 3 years. The licensed area of 105.96km2 sees the area available for exploration under the JV more than double.
  • Planned first phase drilling complete at Target 2 (1,297m, 65 holes). Infill drilling on the previously reported structures is planned for later in the season. External assay results are pending.
  • Drilling commenced at Target 1, in the Zorita Exploration Licence, on 23 June 2015 with 4 holes completed.  Drilling will continue to target tungsten mineralisation, with the tungsten mineral scheelite visually identified in a number of drill samples collected from the target thus far.
  • Target 1 constitutes an isometric 1.5km by 0.5km tungsten anomaly within a 2.4km by 1.5km arsenic anomaly longated in NS direction.
  • Target 1 also contains significant gold in pan concentrate results and Lead-Zinc anomalies parallel to the tungsten anomaly.
  • Exploration activities under Joint Venture ("JV") progressing well;

€200,000 injected by Metal Tiger to date representing a 20% interest in the JV (Metal Tiger is able to invest up to €500,000 for a 50% JV earn-in interest);

1,360m of the planned 5,000m (27%) drill programme complete; 69 holes completed to end 23 June 2015.

 

Cameron Parry CEO of Metal Tiger stated: "It is exciting to be able to report the award of the Zorita Exploration Licence as this contains Target 1 -  an area prospective for both tungsten and gold based on the previous surface sampling.  The award of Zorita has seen drilling commence on Target 1.  Drilling at Target 2 has been completed and we look forward to releasing more results with regard to tungsten at Target 2 shortly as well as results from Target 1 in due course."

 

Licence Details:

The Zorita Exploration Licence (No. 10C10332-00) area is located to the west of the Antonio Caño Exploration Licence (No. 10314-00) in the municipalities of Garciaz, Logrosán and Zorita, in the province of Caceres.  The San Cristóbal pending exploration license application area constitutes the ground located between the existing Antonio Caño Exploration Licence and Zorita Exploration Licences (see Table 1).

 

The Zorita Exploration Licence covers an area of 105.96km2, it is valid for 3 years starting 18 June 2015 and is renewable for a total of 9 years.  The Zorita licence application was lodged on 1 September 2014, at the same time as the San Cristobel exploration application, whose award is expected soon.

 

The award of the Zorita Licence and the completion of the planned first phase drilling at Target 2, means drilling has been able to commence at Target 1 which is located within the Zorita Licence. 

 

An update to the Target 2 results reported by Metal Tiger on 9 June 2015, will be given when the external laboratory assay data is received.

 

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 Exploration Licence (#10C10332-00)

Logrosan Minerals Limited

100%

Exploration

17 June 2018

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.

 

Target 1:

 

Target 1 is located within the Zorita Exploration Licence, it constitutes an isometric arsenic anomaly 2.4km by 1.5 km 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 intensive part of the As anomaly have been analysed by ALS Laboratories, demonstrating the arsenic coincides with tungsten over a 0.5km by 1.5km area.  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).

 

The Dando Terrier tracked rotary air blast (RAB) drill rig commenced drilling at Target 1 on 23 June 2015, with 4 holes completed by end of day.  Visual inspection of the sample material has confirmed the presence of the tungsten mineral scheelite.  As per the methodology employed at Target 2, the collected samples will be analysed internally using an XRF, with a selection sent to an external laboratory for independent analysis.

 

Initial drilling at Target 1 will focus on delineating tungsten and base metal, with focus switching to following up gold anomalies in the second half of the planned drilling programme.

 

Summary of Drilling Progress to Date:

 

The rotary air blast (RAB) drilling programme is progressing well and to plan.  As of end of day, 23th June, a total of 69 holes and 1,360m have been completed; 65 holes (1,297m) on Target 2, and 4 holes (63m) on Target 1. Approximately 27% of the total planned drilling (5,000m) has been completed. 

 

 

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 azimuth of the planned drill profiles is perpendicular to the perceived mineralised trend.  

 

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.

 

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.  Over the prior 18 months, Metal Tiger's joint venture partners in Logrosán Minerals Ltd, Mineral Exploration Network (Finland) Ltd, had 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 had 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.

 

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 is 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 €200,000 earning in a 20% 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. 

 

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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