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Spanish Corporate Update - Expansion of Interests

RNS Number : 6881Z
Metal Tiger PLC
31 May 2016
 

Metal Tiger Plc

31 May 2016

Metal Tiger Plc

("Metal Tiger" or the "Company")

 

Spanish Corporate Update - Expansion of Interests

 

Metal Tiger (LON: MTR), the natural resources investing company is pleased to announce a corporate update and expansion of its interests in Spanish exploration and development opportunities.

 

Highlights:

 

·     Metal Tiger has successfully concluded negotiations to include the Maria Gold ("Au") and Antinomy ("Sb") Project ("Maria" or "Maria Project") licence, covering an area of 40.09 km2 in the Extremadura region of Spain;

·     Maria Project is located approximately 15 kilometres north of the Logrosán gold and tungsten project that Metal Tiger has been developing with Joint Venture ("JV") 50/50 partners since March 2015;

·     Due diligence drilling undertaken recently confirmed gold and antimony mineralisation across the Maria Project demonstrating the strategic potential of the project;

·     Metal Tiger to provide up to €500,000 for 2016/2017 drill programme, with approximately half to be applied to drilling on the Maria license area and the balance used to refine the tungsten deposits outlined during the 2015 drilling programme and to further advance various gold targets;

·     Commitment of €500,000 will be funded from Metal Tiger's existing working capital resources and payments are made at the volition of Metal Tiger and thus dependent on demonstrable JV progress;

·     Metal Tiger's Spanish interests grow substantially with this transaction and position Spain fully as a key strategic focus of the Company.

 

 

Paul Johnson, Chief Executive Officer of Metal Tiger plc commented: "Metal Tiger is delighted to finally announce the significant expansion of its Spanish interests, with the addition of the Maria licence, prospective for gold, to our JV portfolio in the region of Metal Tiger's current Logrosán Project in Extremadura, Spain.  In addition, this new binding MOU allocates further monies for the development of tungsten and gold targets at the Logrosán Project. 

 

The success of the first drilling programme conducted by Metal Tiger's JV partners in Spain has been extremely pleasing and value-building to the assets, as reported since commencement in March 2015.  Whilst this work and the potential it brings to Metal Tiger's portfolio of Metal Projects has been somewhat overshadowed of late by the dramatic findings in Botswana and the major expansion of activities in Thailand we are confident that the 2016/2017 exploration programme in Spain will further the assets being developed there and we look forward to bringing a regular feed of news and progress as this work continues.

 

Metal Tiger now has significant strategic interests in Botswana, Spain and Thailand, all of which are progressing at pace and adding value for shareholders.  We continue to build rapidly and further announcements are expected in the near term across all areas of the Company's investing activities."

 

 

Maria Project - progress update

 

The Maria licence is being assigned to Logrosan Minerals Ltd ("LML") which is owned 50% by Metal Tiger.  The licence area commences approximately 15 kilometres to the north of the existing Logrosán Project licences and covers an area of 40.09 km2.  Prior work on the Maria licence including soil geochemistry and the assay results from MTR's due diligence drilling indicate the area has high prospectivity for antimony-gold style mineralisation.

 

Metal Tiger to provide up to €500,000 over the balance of 2016 and first quarter of 2017 in exploration expenditure, at least half of which will be used to further explore Maria and the balance used to refine and build out the tungsten deposits outlined during the 2015 Logrosán drilling programme.

 

As reported on 5th April 2016, the assay results from the MTR due diligence rotary air blast (RAB) drilling on Maria confirmed the presence of hard rock gold and antinomy mineralisation.  With six of the RAB drill holes returning intersections between 1g/t Au and 3.94g/t Au and nine drill holes with Antinomy intersections >1% Sb (with grades up to 2.6% and the largest Sb intersection 4m @ 1.2% Sb).

 

The Maria Project consists of the Mari Hernández Research Permit (Permiso de Investigación) which was awarded to Metal Tiger's JV partners, Mineral Exploration Network (Finland) Ltd ("MEN") on 13 November 2013 for a period of 3 years, renewable. The permit allows exploration for all mineral deposits and resources except radioactive minerals, coal and hydrocarbons.  The Maria licence is being assigned to LML.

 

 

Logrosán Project: Major 2015-16 Programme Findings

 

The exploration for tungsten (W) in the Logrosán Project centred on two distinct target areas which were identified on the basis of previous soil geochemistry and ground magnetic surveys. These targets are separated by a distance of 12km; Target 1 is near the centre of the Zorita Licence (in the west of the Logrosán Project area) and Target 2 is located in the south-west of the Antonio Licence (in the central Logrosán project area).

 

Between April - June 2015, as part of the Metal Tiger JV work programme, both targets were subject to first-pass RAB drilling to confirm the near surface tungsten mineralisation and grade. The results of this preliminary drilling have been very encouraging, with significant strike length tungsten mineralisation and high grade tungsten intersections outlined.

 

Several gold anomalies were investigated in the Logrosán Project area during the previous work season. Whilst drilling in the vicinity of Target 1 proved inconclusive, further investigation of gold anomalies in the eastern side of the Project area are ongoing.

 

Tungsten Target 1 contains the larger of the two tungsten-in-soil anomalies (up to 636ppm W), measuring 1.2km long by 200m wide and trending NNE-SSW. Drilling, consisting a total of 17 holes (268m) drilled, to an average depth of 16m, on two profiles drilled perpendicular to the anomaly strike at a 380m separation. Drill sample assays confirmed high-grade tungsten mineralisation in the north and the centre of the target soil anomaly and the soil anomaly remains open (untested by drilling) for a distance of 700m to the south and for 120m to the north.

 

Drill assay results, conducted by ALS Laboratories, returned a maximum WO3 grade above the analytical detection limit of 0.63% (5000ppm) and an average grade across all Target 1, drill samples submitted, of WO3 0.09%. The highest intersections in holes MW003 (10m WO3 >0.24%, including 2m >0.63%) on profile 2 and MW010 (with total intersections of 10m >0.2% and 2m WO3 0.37%) on profile 1, are separated by up to 400m of potentially continuous mineralisation. It should be noted that the tungsten concentration of workable ores typically starts from 0.10% WO3.

 

Tungsten Target 2 is located over a central, distinct, tungsten-in-soil anomaly ranging up to 565ppm W and measuring 700m long by up to 150m wide. This central soil anomaly is orientated in a NE-SW direction, and coincides with a 1.6km long geophysical structure. There are three further weaker anomalies associated with structures running parallel to it, one 250m to the north-west and two to the south-east, at 325m and 700m separation to the central anomaly.

 

Target 2 has been investigated with a total of 65 holes to an average of 20m depth, 1,300m in total. The central W anomaly has good drill coverage with a total of 26 holes on 8 profiles over a total strike length of 570m. Two further profiles have been drilled along strike at 560m NE and 500m SW of the outlying profiles (on the central zone drilling). Both these profiles are located on the same 1.6km geophysical structure, but coincide with continuous strong Cr, Cu, Sn, As and weak W anomalies.

 

Assays from all analysed drill samples on Target 2 average WO3 0.04% and a maximum of WO3 >0.63% (above upper detection limit) located in the central anomaly.

 

There is a 400m on-structure strike distance between hole LM014 (on profile 3) with 2.70m WO3 >0.32% (including 2m @ > 0.63%) and hole LM08 (on profile 7) with 8m at WO3 0.32% (including 2m @ 0.49%WO3 & 0.1% SnO2).

 

Summary of Logrosán 2015-16 Drill Programme Work

 

RAB Drilling

# Holes

Metres Drilled

Samples Assayed

ALS Check Assay

Logrosán Licence

65

1301

620

195

Zorita Licence

199

3301

1123

840

Logrosán Project Total

264

4602

1743

1035

Maria (due diligence drilling)

38

731

690

272

Total 2015-16 Season

302

5333

2433

1307

 

 

Location and Region

 

The Logrosán Project and Maria Project areas, are located in a geologically prospective, under-explored and mining friendly jurisdiction in west-central Spain within the province of Cáceres in the Extremadura autonomous region.  The Projects are served by a well-developed and maintained road network, with good power, water and telecommunications infrastructure and enjoys the full support of the regional and local government and administration.

 

 

Neighbouring Properties

 

There are three public listed exploration and pre-production development companies located within the surrounding region. The W Resources Plc La Parrilla tungsten mine is 43km south-west of the Project area; the Emerita Resources Corporation Las Morras Gold Project is 6km to the south; and the Berkley Resources Plc Gambuta uranium deposit is 40km north.

 

 

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.  During the 18 months prior to the joint venture commencing, Metal Tiger's joint venture partner, Mineral Exploration Network (Finland) Ltd "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 had been confirmed by soil sampling, outcrop sampling, trenching and historical drill holes.  Gold mineralisation had been indicated by pan-concentrate sampling which delineated three areas with anomalous gold.

 

Metal Tiger funded €500,000 in exploration work over the balance of 2015 and Q1 2016 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 Logrosan Minerals Limited in line with funds injected.  The balancing holding in the SPV is held by MEN.

 

 

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM, FGS), who is a qualified geologist who meets the criteria of a qualified person under the AIM Rules - Note for Mining and Oil & Gas Companies.  Mr O'Reilly has visited the Logrosán and Maria Project Areas, 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 provide technical support.

 

 

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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