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Tungsten Mineralisation Confirmed at Main Target

RNS Number : 1843T
Metal Tiger PLC
16 July 2015
 

METAL TIGER PLC

16 July 2015

 



Metal Tiger plc

("Metal Tiger" or the "Company")

 

Tungsten Mineralisation Confirmed at Main Target

 

Metal Tiger (LON: MTR), the natural resources investing company is pleased to provide the drill sample assay results for Target 1 of the Logrosán Gold and Tungsten Joint Venture project in Extremadura, Spain.   

 

Highlights:

 

·      The drill sample assay results for Target 1 received (assay batch 6); notable tungsten intersected in 6 of the 11 holes selected for external assay;

·      These results complete the April - June 2015 sampling programme, drilling and sampling will recommence in September 2015;

·      Target 1 stand out tungsten drill hole intersections include:

 

Hole MW003

Ø 10m @ 0.24% WO3 from 3.60m to 13.60m,  including 2m @ > 0.63% WO3

 

Hole MW004

Ø 8M @ 0.19% WO3 from 1.63m to 9.63m, including 2m @ 0.34% WO3

Hole MW005

Ø 2.0m @ >0.10% WO3 from 1.63m to 3.63m

 

Hole MW009

Ø 2.0m @ 0.20% WO3 from 7.63m to 9.63m

 

Hole MW010

Ø 2.0m @ 0.31% WO3 from 1.54m to 3.54m

Ø 4.0m @ 0.20% WO3 from 5.54m to 9.54m

Ø 2.0m @ 0.37% WO3 from 11.54m to 13.54m

Ø 2.0m @ 0.23% WO3 from 15.54m to 17.54m

 

Hole MW011

Ø 2.0m @ 0.10% WO3 from 5.68m to 7.68m

Ø 2.0m @ 0.25% WO3 from 11.68m to 13.68m.

 

Guidance Note: When reviewing the data within this announcement please note that the tungsten concentration of workable ores typically starts from 0.1% WO3.

 

 

Cameron Parry CEO of Metal Tiger said: "The Zorita Licence holds the largest tungsten target currently identified within the Logrosán Project hence the designation as target 1.  It is therefore extremely exciting to receive the first batch of data from target 1 confirming tungsten and demonstrating near surface mineralisation and high grade assay results.

 

We have now identified near surface and high grade tungsten mineralisation at the two largest targets within the Logrosán project with the targets some 12km apart.  The demonstrable mineralisation and geographic spread of the results to date suggests that the Joint Venture has potentially uncovered a new tungsten district within Extremadura. 

 

The exploration work is still early stage but the findings to date are enthusing all the Joint Venture partners and we are looking forward to the recommencement of drilling in September.  The specific objective of the exploration work going forward is to seek to confirm a substantial tungsten deposit at Logrosán Project.

 

Separately, we continue to progress various new initiatives in respect of our Direct Projects and Direct Equities divisions and look forward to updating the market with specific developments in the near future."

 

 

Logrosán - Summary of Progress to Date:

 

The Rotary Air Blast (RAB) drilling programme at the Logrosán Project is currently on pause for the planned summer break.  The receipt of the 6th batch of assay results from ALS Minerals Laboratory (ALS) concludes the results for the 24 April - 30 June 2015 season drilling season.  Further batches of samples will be sent for external assay when drilling resumes in September.

 

The 6th batch constitutes 51 drill samples from 11 of the 17, Target 1, holes sent for external assay. A summary of the significant tungsten intersections for Target 1 is given in Table 1 below.

 

Target 1 is located in the Project's Zorita licence area.  The significant tungsten intersections from Target 2 have been reported in previous news releases.

 

Drill samples are typically 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 in Seville, Spain (the accredited external assay).

 

Upon receipt at ALS, samples were 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 %).

 

Table 1: Significant Tungsten Drill Hole Intersections, Logrosán Target 1

 

Hole ID

From (m)

To  (m)

Intersection Width * (m)

WO3 (%)

Notes

MW003

3.60

13.60

10.00

0.24

including 2m @ > 0.63% WO3 (above detection limit)

MW004

1.63

9.63

8.00

0.19

including 2m @ 0.34% WO3

MW005

1.63

3.63

2.00

0.10


MW009

7.63

9.63

2.00

0.20


MW010

1.54

3.54

2.00

0.31

Holes MW010 and MW011 were drilled to target the same structure from opposing directions.

5.54

9.54

4.00

0.20

11.54

13.54

2.00

0.37

15.54

17.54

2.00

0.23

MW011

5.68

7.68

2.00

0.10


11.68

13.68

2.00

0.25

 

* Note that drill intersection widths do not necessarily represent the true thickness of the mineralisation as insufficient drilling has been completed to calculate the actual dips of the veins/structures.

 

 

Background to Logrosán Drilling Programme:

 

The planned programme consists up to 5,000m of inclined rotary air blast (RAB) drilling designed to test surface geochemical and geophysical anomalies at depth.  Drilling is split between two seasons, 24 April to 30 June and September to December, with a break over the hottest part of the year.  The drill rig which is owned by the Joint Venture company is a compact, track mounted Dando Terrier drill fitted with a mast dump for inclined drilling up to 45 degrees from vertical.  The method of drilling and sampling is deemed appropriate for the stage and goals of the exploration programme.  The drilling programme, the sampling procedures, protocols and results are agreed and are reviewed in conjunction with Metal Tiger's qualified geologist.

 

The drilling commenced in April 2015 on Target 2, an elongated zone of elevated tungsten in soil anomalies and structure identified by ground magnetics in the Antonio Caño Exploration Licence area.  A total of 14 drill profiles have been completed during the first pass drilling at this target which is characterised by four sub-parallel tungsten soil geochemistry anomalies (in an area 1.2km by 1km) superimposed over an arsenic anomaly and structures interpreted from the magnetic geophysics.

 

Target 1 is located within the Zorita Exploration Licence area, it constitutes an isometric arsenic in soil 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).

 

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 into 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. 

 

The SPV holds 2 granted licences and 1 licence application 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 and was granted on 2 December 2013 for a period of three years.   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 "San Cristóbal" licence application covers 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:

 

Metal Tiger Plc


Cameron Parry (CEO)

Tel: +44 (0)207 099 0738

Paul Johnson (Executive Director)

Tel: +44 (0)7766 465 617

Spark Advisory Partners Limited (Nominated Adviser)

Sean Wyndham-Quin

Neil Baldwin

Tel: +44 (0) 2033 683 555

 

SI Capital (Sole Broker)

Nick Emerson

Andy Thacker

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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