Spanish Exploration and Corporate Update

RNS Number : 2014U
Metal Tiger PLC
05 April 2016
 

METAL TIGER PLC

5 April 2016

 



Metal Tiger plc

("Metal Tiger" or the "Company")

 

SPANISH EXPLORATION AND CORPORATE UPDATE

 

 

Metal Tiger (LON: MTR), the natural resources investing company is pleased to provide an update regarding project developments in Extremadura, Spain.

 

Highlights:

 

§ At the Logrosán Gold and Tungsten Joint Venture (JV) project alteration mapping and infill soil and outcrop sampling has delineated a new gold target area 'El Seranillo North';

 

§ At our JV partner's 100% owned Maria Project, the first batch of assay results from the MTR due diligence drilling have confirmed hard rock gold and antimony mineralisation;

 

§ Metal Tiger is in advanced discussions to secure an interest in Maria and has agreed an extension of the previously announced standstill agreement with Logrosán JV partner Mineral Exploration Network (Finland) ('MEN") to 18 April 2016; and

 

§ Metal Tiger is to pay a shares bonus of 1,450,000 MTR new ordinary shares at 5.35p per ordinary share to the field team at our Spanish Joint Venture.  This amounts to a team bonus of £77,750 and will be shared by seven team members to reflect a year of intensive work and extremely positive exploration success creating a platform for Metal Tiger to proactively build its Spanish interests in 2016.

 

 

Paul Johnson CEO of Metal Tiger said: "Once again we have reason to celebrate the results of exploration work from our Spanish Interests.  The identification of an additional gold target at Logrosán is particularly significant for that project and we will investigate this proactively in 2016. 

Our due diligence drilling at Maria has identified highly interesting gold and antimony mineralisation on first pass drilling to shallow depth. The results to date are compelling and we are therefore in advanced negotiations with our Logrosán Joint Venture partners to add the Maria licences into our Logrosán portfolio. 

Metal Tiger has seen tremendous success to date from our Spanish interests.  Through regular feedback about ground operations and through visits we have undertaken to Spain, we have seen first hand the commitment of the team and an intensity of work on the licences that is highly impressive.  It is therefore absolutely correct that we should award the team with a decent bonus for the year's work that, as requested by the team, is to be paid in Metal Tiger plc shares.

We very much look forward to providing further updates from Spain including, if negotiations conclude successfully, further details with regard to acquisition of an interest in the Maria Project for Metal Tiger shareholders."

 

Logrosán Joint Venture (JV) Project - progress update:

 

Following the completion of the Rotary Air Blast (RAB) drilling programme at the Logrosán Project, recent work has focussed on data interpretation, mapping and infill sampling.

Alteration mapping peripheral to the central Logrosán granitic intrusion has highlighted an initial two new areas for more detailed investigation.  The assay results from infill soil sampling and outcrop sampling from one of the new target areas, 'El Seranillo North', has confirmed the area as prospective for gold.

Infill soil samples taken on three 500m long profiles have yielded gold in soil of up to 0.24g/t Au. Following the receipt of these assays the pulps from the six adjacent soil sample lines will also be submitted for gold analysis.  Samples from these adjacent lines have previously only been analysed by the XRF method which does not account for gold.

A total of 13 'grab' samples were also taken from the vicinity of the gold soil anomaly, ten of these samples have confirmed hard rock gold mineralisation with one sample yielding 1.68g/t Au.

The soil sample and outcrop sample results currently delineate a gold target area approximately 450m by 500m, open to the north and south.  With the results correlating in a north-south alignment, there is potential for further sampling to increase the target length above 450m.

As well as submitting the previous soil samples for gold analysis, detailed ground magnetic geophysics is planned to help extend and delineate the target ahead of investigative trenching and/or RAB drilling at El Seranillo North. 

Investigation of the other new target area is ongoing.

The sample analysis is being conducted by ALS Minerals Laboratory (ALS) in Seville using their 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.

 

Maria Project - progress update:

 

The first batch of gold assay results have been received back for the Maria Gold ("Au") and Antinomy ("Sb") Project ('Maria') due diligence drilling.

Six of the RAB drill holes have returned intersections between 1g/t Au and 3.94g/t Au.  Nine holes gave Antinomy intersections >1% Sb, with grades up to 2.6% and the largest Sb intersection 4m @ 1.2% Sb.

Hole M011

Ø 1m @ 1.14 g/t Au from 3.6m to 4.6m;

Ø 2m @ 3.50 g/t Au from 14.6m to 16.6m (including 1m at 3.94g/t Au).

Hole M015

Ø 1m @ 1.23 g/t Au from 15.6m to 16.6m;

Ø 1m @ 2.6% Sb from 9.6m to 10.6m.

Hole M022

Ø 1m @ 1.5% Sb from 6.6m;

Ø 1m @ 1.41 g/t Au from 13.6m to 14.6m;

Ø 4m @ 1.2% Sb from 12.6m to 16.6m, including 1m @ 1.5% Sb & 1m @ 2.1% Sb.

Hole M024

Ø 1m @ 1.17 g/t Au from 9.7m to 10.7m

Hole M029

Ø 1m @ 1.13 g/t Au from 8.5m to 9.5m

Hole M031

Ø 3m @ 1.2% Sb from 12.6m to 16.6m , including 1m @ 1.5% Sb & 1m @ 1.4% Sb

Hole M032

Ø 1m @ 1.06 g/t Au from 16.5m to 17.5m;

Ø 3m @ 1.2% Sb from 14.5m to 17.5m , including 1m @ 1.3% Sb & 1m @ 1.4% Sb

 

Maria is 100% owned by MTR's Logrosan JV partner MEN.  As announced on 15 February 2016, MTR has a standstill agreement with MEN over Maria in order to allow MTR a due diligence period ahead of a potential JV decision. With the receipt of the first assay results for Maria end of last week, a two week standstill agreement extension to 18 April 2016 has been agreed.

 

 

Standstill Agreement - Maria Project:

The Maria Project is 100% owned by our Logrosan JV partner MEN. As announced on 15 February 2016, MTR has a standstill agreement with MEN over Maria in order to allow MTR a due diligence work period ahead of a final decision.

Subject to due diligence work, the results encountered and the normal process of commercial negotiations, Metal Tiger and MEN may elect to bring the Maria Project under Joint Venture between the companies.  Unless and until a commercially binding contract is achieved, there can be no assurance that a transaction of any nature can or will be concluded.

With the delayed receipt of the first ALS assay results for Maria on 1 April, a two week standstill agreement extension to 18 April 2016 has been agreed. The extension is to allow the conclusion of the MTR due diligence following later than anticipated drilling assay results and for necessary commercial negotiations to be undertaken.

As part of the due diligence process the Logrosán Project's RAB drill rig was moved to the Maria Project where drilling and assay testing was undertaken to assess the nature and extent of mineralisation. A total of 38 drill holes were completed to an average depth of 19.2m.

Further information with respect to the Maria Project will be provided in due course, as appropriate.

 

Background to the Logrosán 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 joint venture operating company for the Logrosán Exploration Project.  Prior to the joint venture 18 months, Metal Tiger's joint venture partner, MEN, 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 has been confirmed by soil sampling, outcrop sampling, trenching and historical drill holes.  Gold mineralisation has been indicated by pan-concentrate sampling which delineated three areas with anomalous gold.

Metal Tiger was to fund €500,000 in exploration work over the balance of 2015 in line with an agreed exploration programme that included up to 5,000 metres of drilling.  During the period ended 31 December 2015 the Joint Venture expended €400,000 on exploration work and approximately 4,700m of drilling was completed.

The remaining €100,000 was rolled over into 2016 with the agreement of both parties.  Since the start of the year Metal Tiger has paid a further €100,000 into the joint venture making payments to date of €500,000.  As a result Metal Tiger has now earned into 50% of Logrosán Minerals Ltd in line with funds injected.  The balancing holding in the SPV is held by MEN.

The Logrosán Minerals Ltd 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.

 

Logrosán Team Bonus Award:

After review of the exploration team performance in 2015 and early 2016, and reflecting the conclusion of the original Logrosán Joint Venture work programme Metal Tiger is to pay a shares bonus of 1,450,000 MTR new ordinary shares to the field team at the Logrosán Joint Venture. 

 

This amounts to a team bonus of £77,750 and will be shared by seven team members to reflect a year of intensive work and extremely positive exploration success creating a platform for Metal Tiger to proactively build its Spanish interests in 2016.

 

The 1,450,000 new ordinary shares are expected to be admitted to trading on or around 12th April 2016.  Following the issue of the new ordinary shares, the number of ordinary shares in issue in the Company will increase to 492,759,588.  For the purposes of the Financial Conduct Authority's Disclosure and Transparency Rules ("DTRs"), the issued ordinary share capital of Metal Tiger following this allotment consists of 492,759,588 ordinary shares with voting rights attached (one vote per share). There are no shares held in treasury.  This total voting rights figure may be used by shareholders as the denominator for the calculation by which they will determine whether they are required to notify their interest in, or a change to their interest in, Metal Tiger under the DTRs.

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:

 

Paul Johnson (Chief Executive Officer)


Tel: +44 (0)7766 465 617

Terry Grammer (Non- Executive Chairman)


Tel: +44 (0)207 099 0738

Sean Wyndham-Quin

Neil Baldwin

Nick Emerson

Andy Thacker

Spark Advisory Partners Limited

(Nominated Adviser)

SI Capital

(Sole Broker)

 

Tel: +44 (0) 2033 683 555

www.sparkadvisorypartners.com

Tel: +44 (0) 1483 413 500

 

Notes to Editors:

 

Metal Tiger plc is listed on the London Stock Exchange AIM Market ("AIM") with the trading code MTR and invests in high potential mineral projects with a precious and strategic metals focus. 

 

The Company's target is to deliver a very 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.  The Company's key strategic objective is to ensure the distribution to shareholders of major returns achieved from disposals.

 

Metal Tiger's Metal Projects Division is focused on the development of its key project interests in Botswana, Spain and Thailand.   In Botswana Metal Tiger has a growing interest in the large and highly prospective Kalahari copper/silver belt.  In Spain Metal Tiger the Company has tungsten and gold interests in the highly mineralised Extremadura region. In Thailand Metal Tiger has expanding interests over licences, applications and critical historical data covering antimony, copper, gold, silver, lead and zinc opportunities.

 

The Company has access to a diverse pipeline of new opportunities focused on the natural resource sector including physical resource projects, new natural resource centred technologies and resource sector related fintech opportunities.  Pipeline projects deemed commercially viable may be undertaken by Metal Tiger or by an ISDX or AIM partner with whom the Company is engaged. 

 

Metal Tiger also has an Asset Trading Division that holds various financial instruments for trading purposes including equities, warrants and royalty income.  The aim of the division is to generate profits to reinvest into the Company's project based activities.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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