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Gold Mineralised Structure - Spain

RNS Number : 6331G
Metal Tiger PLC
23 November 2015
 

METAL TIGER PLC

23 November 2015

 



Metal Tiger plc

("Metal Tiger" or the "Company")

 

Gold Mineralised Structure - Spain

 

Metal Tiger (LON: MTR), the natural resources investing company is pleased to provide a update on the drilling progress on the Logrosán Gold and Tungsten Joint Venture project in Extremadura, Spain which has now identified a mineralised gold structure achieving the initial objective of the drill campaign. With the positive results outlined below we are now focussing drilling to pursue and extend the identified mineralisation area.  

 

Highlights:

 

·      Drilling confirms initial hard-rock hosted gold intersections at Zorita North Target;

·      Rotary Air Blast (RAB) drilling and sampling programme continues with current focus on Gold in the Zorita Exploration Licence;

·      First 325 gold assay results processed by ALS Laboratories, these consist selected samples from 80 drill holes on four drill profiles;

·      Gold mineralised NE-SW trending structure intersected in all three North Target drill profiles;

·      Gold trend defines a corridor up to 185m long by 45m wide, this is currently open along strike in both directions;

·      Best intersection to date:

o Hole MG059: 4m @ 2.0 g/t Au from 7.6m to 11.6m,
including 2m @ 3.9g/t Au from 9.6m to 11.6m;

·      To date 154 shallow drill holes completed, 2,521m drilled, on Zorita Licence gold targets, and;

·      A total 237 drill holes (4,089m) on Logrosan Project including both the tungsten and gold targets. 82% of 5,000m drill programme completed to planned schedule.

 

Cameron Parry CEO of Metal Tiger said: "We are pleased to announce that the RAB drilling on the Zorita Licence has intersected initial hard-rock gold mineralisation in the North Target area, and that the assay results on 3 drill profiles have defined a 185m long NE-SW trending mineralised trend, which is currently open at both ends.

Given the nature of this initial drilling programme, we are delighted to have identified gold mineralisation at this early stage, achieving our initial objective and enabling drilling to build on the mineralisation already identified.   This ratifies the professionalism of our Joint Venture partners in their historic work which provided the drill targets leading to this early positive drilling outcome.   We are also pleased to confirm that the drilling and sampling is progressing well and to schedule.

As the drilling strategy is to sequentially drill profiles across each of the gold two broad target areas as defined by previous surface sampling and geophysics, we look forward to the prospect of building out the total strike of the gold trend as the programme continues and will provide further updates as appropriate going forward."

Logrosán - Summary of Progress to Date:

The Rotary Air Blast (RAB) drilling programme at the Logrosán Project's Zorita Licence, North and South targets, is currently progressing well.  Since recommencing field work on 10th September, drilling is conducted mainly on a double shift basis, with up to 4 holes completed per 24 hour period. The gold focused work has collected a total of 1,153 drill samples from 154 drill holes to date.

A total of 325 gold assay results, derived from selected samples submitted from the first 80 holes on North Target, have been received from ALS Minerals Laboratory (ALS). Gold levels away from the perceived gold trend are generally below 0.1g/t, but intersections in 6 holes on 3 profiles define a trend where intersections grade up to 3.9g/t Au, see Table 1 below.

Table 1: Gold Drill Hole Intersections on Mineralised Trend, Logrosán North Target

 

Hole ID

Drilling Profile #

From (m)

To

(m)

Intersection Width * (m)

Au g/t

MG024

2

11.68

13.68

2.00

0.1

MG025

2

7.64

9.64

2.00

0.3

MG050

3

17.58

19.58

2.00

0.3

MG053

3

13.59

15.59

2.00

1.2

MG058

4

11.61

13.61

2.00

0.1

MG059

4

7.59

9.59

2.00

0.1

9.59

11.59

2.00

3.9

 

* 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.

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. A sub-sample of material is pan concentrated for visual inspection of sulphide and gold grain content.  Where visible sulphides and/or gold is encountered samples are batch analysed by ALS in Seville, Spain (the accredited external assay).

Upon receipt at ALS, samples are weighed, crushed, split and pulverised to 85% < 75microns and then analysed by Fire Assay with Atomic Adsorption finish (Au-AA23) package. Reporting is for gold in parts per million (ppm), with a lower detection limit of 0.005ppm Au. ALS conduct internal quality control analysis.

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 10 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 who visited site again at the commencement of the gold target drilling.

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 partner 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 €300,000 earning into a 30% 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 105.96 km2, 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, Botswanan Copper & Silver, 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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