Gold Target Drilling to Commence on Spanish JV

RNS Number : 7526Y
Metal Tiger PLC
11 September 2015
 

METAL TIGER PLC

11 September 2015

 



Metal Tiger plc

("Metal Tiger" or the "Company")

 

Gold Target Drilling to Commence on Spanish Joint Venture

 

Metal Tiger (LON: MTR), the natural resources investing company is pleased to announce the recommencement of drilling at the Logrosán Gold and Tungsten Joint Venture ("JV") project in Extremadura, Spain.   

 

Highlights:

 

·     Following a scheduled summer break, the field team are back on-site and the Rotary Air Blast (RAB) drilling and sampling programme will recommence in the next few days;

 

·     With the successful delineation of significant tungsten mineralisation at Targets 1 and 2 during the April - June 2015 drilling season, the autumn drilling will now target gold in the Zorita Exploration Licence;

 

·     The Zorita Licence contains two distinct gold anomalies, 'North Target' and 'South Target', outlined by gold flake in pan concentrate sample clusters and arsenic in soil geochemistry;

 

·   On completion of the first-pass drilling the results will be interpreted and follow-up drilling will be planned accordingly.

 

 

Cameron Parry CEO of Metal Tiger said: "We are excited to start the second phase of the planned drilling at our Logrosán Joint Venture, with the targeting of gold at the Zorita licence.

 

The results of the spring drilling season exceeded our expectations in terms of delineating significant tungsten grade and geographic spread at Target 1 and Target 2 and having potentially uncovered a new tungsten district within Extremadura.  We now look forward to targeting the source of the gold seen in the pan concentrate samples, during the autumn drilling season.

 

Metal Tiger remains highly active and in addition to our Spanish project, the Company has been making good progress with regard to our Thai Gold & Antimony and Tanzanian Gold & Uranium, Joint Ventures.

 

The Company also remains heavily engaged in the search and investigation of additional opportunities to complement, diversify and further strengthen the existing Direct Projects portfolio.  Our work is designed to ensure engagement with the best opportunities, on terms which reflect current resource sector conditions. 

 

Whilst discussions continue with various parties, following an approach to the Company, Metal Tiger has agreed commercial terms to participate in an opportunistic precious and base metals joint venture.  We await final regulatory and procedural approvals and should these be received, providing certainty that the transaction will proceed, Metal Tiger will make an appropriate announcement to market."

 

 

Description of Logrosán JV Gold Anomalies

 

The gold anomalies that will be subject to the autumn drilling season are located in the project's Zorita Exploration Licence, approximately 1 km to the east and 1km to the south of the tungsten Target 1.

 

The gold anomalies consist two clusters of gold flake in pan concentrate results which constitute a 'North Target' and a 'South Target' along a 4km strike length on the eastern flank of a major arsenic in soil anomaly. The arsenic in soil anomaly covers an area up to 2.5km by 2km and is underlain by NNE trending structures indicated by ground magnetics geophysical survey work. The study of the gold flakes from across the anomalies 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 Logrosán Drilling Programme:

 

The planned 2015 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 first spring season targeted tungsten anomalies (Target 1 and Target 2) and completed over 1,500m of first-pass drilling. The autumn season drilling will now move on to investigate the gold anomalies ahead of second-pass infill drilling, as warranted, later in the season.

 

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.

 

Tungsten 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 (constituting the North and South gold anomalies). 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. 

 

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 €250,000 securing to date  a 25% 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
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