MOD Resources and Metal Tiger advance on strong T3 copper intersections (MOD MTR)

Both MOD Resources (LSE:MOD) and Metal Tiger (LSE:MTR) were trading up on Tuesday following strong infill drilling results from the T3 copper project.

So far, assay results have been received for 11 holes at the site, based in Botswana’s Kalahari Copper Belt and 100opc owned by MOD. These form part 60-hole programme that began in T3’s proposed open pit in January with the aim of upgrading early production into the high-confidence measured resource categories.

Many strong intersections have been recorded, including one within hole MO-G-188D of 31.5m at 2pc copper from 85.6m downhole including 10m at 4.7pc copper from 105m downhole. Meanwhile, another hole called MO-G-192D intersected 33m at 2pc copper including 16m at 3.3pc copper from 99m.

MOD was trading up 2.7pc to 19p on the news as at writing. Managing director Julian Hanna said the initial results demonstrate the high-grade nature of the veins within the T3 open pit.

‘The initial results published today from the T3 infill drilling program are very strong. They continue to support and validate the accuracy of the resource model while also identifying significant new copper intercepts within the early stages of the planned open pit,’ he added. ‘These wide, high-grade intersections are increasing our confidence in the quality and continuity of the resource. In addition, they provide encouragement of the potential to increase the current open pit resource.’

All-in-all, MOD has so far drilled 25 of the 60 holes, utilising up to three drill rigs. It expects to complete the remaining 35 infill drill holes by the end of H1 2019, ahead of both the proposed T3 open pit ore reserve and feasibility.

MOD said the latter remains on track for completion by the end of March 2019. A pre-feasibility study on the project gave it a base case NPV of $281m and only weeks after a resource upgrade gave it a total mineral resource estimate of 590Kt copper and 27Moz silver.

Metal Tiger, which sold off its position in T3 last year but retained exposure through its 10.5pc stake in MOD, also rose on the news, advancing 3.9pc to 1.35p. The jump came despite a separate RNS showing that the company’s cornerstone investors Sprott had reduced its stake slightly from 13.7pc to 12.9pc.

On the infill drilling results, chief executive Michael McNeilly said: We are pleased to report the significant infill drilling intersections from MOD’s T3 project in Botswana. The infill drilling programme is expected to allow a significant portion of the Mineral Resource to be categorised as Measured, with these initial results also providing the prospect of increasing the current open pit resource.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

The Author has not been paid to produce this piece by the company or companies mentioned above.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

Metal Tiger investment co delivers ‘compelling’ drilling targets in the Kalahari Copper Belt (MTR)

Metal Tiger (LSE:MTR) sat at 1.3p on Thursday after revealing strong exploration drilling progress in Botswana’s Kalahari Copper Belt (KCB) by one of its investment companies.  

Metal Tiger’s CEO McNeilly on why Monday’s Sprott placing is a ‘fantastic sign’ for investors (MTR)

Metal Tiger (LSE:MTR) finished up 3.5pc to 1.3p on Monday after announcing that major institutional backer Sprott Capital Partners will support it in a £3m fundraise.

The Botswana-focused mining investment business has signed a non-binding term sheet that will see Sprott act as finders on its behalf for a non-brokered private placement. Based in Toronto, Sprott is one of the world’s largest dedicated natural resources investors. Its affiliate company Exploration Capital Partners is Metal Tiger’s biggest shareholder, with a 10.2pc stake (as at October 2018).

As part of the placing, nearly 207m Metal Tiger shares will be placed at 1.45p each, an 11.5pc premium to their middle market closing price on Friday last week. Alongside this, subject to Sprott raising the required funds, up to 103.5m warrants will be issued with an exercise price of 2p each and a term date of two years. The Sprott offering will only be available to certain accredited investors and is expected to close on or before 8 March 2019.

Speaking to MiningMaven, Metal Tiger chief executive Michael McNeilly called the continuing endorsement of Sprott a ‘fantastic sign’ for the company.

‘We are delighted to have entered into the Sprott Term Sheet to raise up to an additional c.£3.0 million. Such additional funding will provide yet further support to our strategy, and we look forward to updating shareholders in this regard,’ he said.

‘It not only emphasises Sprott’s interest in getting more exposure to the Kalahari Copper Belt (KCB), a highly sought-after copper opportunity, but also in Metal Tiger’s wider portfolio and management. We look forward to working closely with them as we continue to realise the potential of our Botswana projects well as the rest of our high-impact portfolio.’

Separately to the Sprott raise, Monday also saw Metal Tiger launch a further £1m placing to new and existing investors. This is also taking place at 1.45p a share with 2p warrants attached for every two placing shares purchased.

A number of the company’s director will take part in this raise, including McNeilly and non-executive chairman Charles Hall, who will invest £14,500 and £58,000 respectively. Furthermore, Dianne Grammer, the wife of non-executive director Terry Grammer, will purchase £137,500 worth of shares.

Metal Tiger said the proceeds would be used alongside existing cash resources to support its projects in the KCB. This includes the firm’s joint ventures with MOD Resources and Kalahari Metals (KMI). Metal Tiger has the right to acquire up to 50pc of KMI under an investment agreement established last June.

On Monday, McNeilly added: ‘We are very pleased with the level of support we have received in respect of the Placing from new and existing investors. The Placing will enable Metal Tiger to, among other things, enter into constructive negotiations with Kalahari Metals, regarding the Company potentially providing further financing for proposed exploration drilling at the Okavango and Ngami projects. It will also allow us to continue to take advantage of opportunities that are identified by the Company.

Last week, KMI revealed a series of drill-ready targets from the second phase of its airborne geophysics survey over two areas in the KCB called the Ngami copper project (NCP) and the Okavango copper project (OCP). The firm also doubled its exploration landholding in the KCB last November through an earn-in agreement with Resource Exploration and Development. This saw it acquire an interest in five recently granted exploration licences with a total area of 4,661km2. It now holds interests in 12 exploration licences covering 8,724km2 in the structure.

Speaking to Mining Maven in December, McNeilly said the acquisition makes Metal Tiger the company with the biggest landholdings in the KCB globally. Alongside its indirect stake in KML, it is part of an exploration joint venture with MOD Resources that owns permits covering 8,000km2 in the area. It is also MOD’s largest shareholder, giving it significant exposure to the upside on offer at T3 without the burden of cash calls as the project develops.

‘We are a very highly leveraged play for a district that at some point is likely to be acquired by a mid-tier or subject to finding enough copper, a large-cap mining company,’ McNeilly told us.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

The Author has not been paid to produce this piece by the company or companies mentioned above.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

Metal Tiger investment sets its sights on Kalahari Copper Belt drill targets (MTR)

Thursday saw Metal Tiger (LSE:MTR) reveal that one of its investment companies has identified a series of drill-ready targets in Botswana’s prospective Kalahari Copper Belt (KCB). Kalahari Metals (KML) carried out the second phase of its airborne geophysics survey over two areas called the Ngami copper project (NCP) and the Okavango copper project (OCP).

The work at NCP targeted numerous fold structures identified in the first phase of surveying that presented ideal trap-sites for high-grade copper-silver mineralisation. It created a higher resolution picture of these areas that ultimately allowed KML to identify three anticline dome targets.

The targets are analogous to MOD Resources’ T3 deposit, which contains a 60Mt resources at 0.98pc copper and 14g/t gold.  KML has now proposed a combination of diamond drill holes to confirm conductors in each target. This will allow it to corroborate model results and zone in on potential mineralisation.

Meanwhile, work at OCP identified a fold-closure target that KML has set out as a high priority for proposed diamond drill testing. It believes the site, identified through the mapping of marker conductors from assets held by Cupric Canyon, could host copper/silver mineralisation.

Metal Tiger, which has the right to acquire up to 50pc of KML under an investment agreement established last June, dipped 1.5pc to 1.3p on the news. However, Michael McNeilly, Metal Tiger’s chief executive, said:

‘The increased resolution provided by the Phase-2 Airborne Electromagnetic and Magnetic survey data combined with Layered Earth inversion modelling has provided compelling structural and lithological targets for drill-testing. We are actively reviewing KML’s proposed diamond and reverse circulation drilling targets against the strong likelihood of adding significant value to the project through drilling. KML is awaiting sign off of feedback on the environmental management plan shortly for the Ngami licence and further updates will be provided to shareholders in due course.’

KML doubled its exploration landholding in the KCB last November through an earn-in agreement with Resource Exploration and Development. This saw it acquire an interest in five recently granted exploration licences with a total area of 4,661km2. It now holds interests in 12 exploration licences covering 8,724km2 in the structure.

Speaking to Mining Maven in December, McNeilly said the acquisition makes Metal Tiger the company with the biggest landholdings in the KCB globally. Alongside its indirect stake in KML, it is part of an exploration joint venture with MOD Resources that owns permits covering 8,000km2 in the area. It is also MOD’s largest shareholder, giving it significant exposure to the upside on offer at T3 without the burden of cash calls as the project develops.

‘We are a very highly leveraged play for a district that at some point is likely to be acquired by a mid-tier or subject to finding enough copper, a large-cap mining company,’ McNeilly told us.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

The Author has not been paid to produce this piece by the company or companies mentioned above.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Metal Tiger rounds up Kalahari Copper Belt progress and lays down 2019 plans (MTR)

Metal Tiger (LSE:MTR) advanced 3.5pc to 1.5p on Tuesday morning after summarising its progress in Botswana towards the end of 2018 and laying down its exploration plans for the next 12 months.

Over the whole of 2018, Metal Tiger’s 30pm-owned joint ventures with MOD Resources (LSE:MOD) drilled a total of 148 holes in the country’s prospective Kalahari Copper Belt. Of these, the firms drilled 41 in the final quarter of the year.

In Tuesday’s update, Metal Tiger said nine holes drilled at its A4 done over the period intersected copper-containing Ngwako Pan Formation contacts and/or vein hosted copper. The A4 Dome is located 8km away from the MOD’s T3 project and is the first of several buried domes to be drilled as part of the T3 expansion project.

The expansion project forms part of a strategy to explore for additional resources within the transport distance of the planned T3 copper project process plant. The plan is for this to add significant value to the project for MOD and, in turn, Metal Tiger as MOD’s largest shareholder.

The second buried dome is called A1 and is located around 22km northeast of T3. In today’s update, Metal Tiger said one hole at the site has intersected a wide zone of disseminated copper.

Meanwhile, the firm said three holes drilled at its T23 dome intersected visible copper. A further hole is yet to complete. The T23 dome is part of the T20 exploration project, which lies 120km west of the T3 expansion project. It also contains the extensive T20 soil anomaly and T4 prospect and is interpreted to occur within the same structural corridor that hosts T3.

Finally, Metal Tiger laid out 2019 plans for its JV with MOD resources, which is called Tshukudu Exploration. The JV was established last year after Metal Tiger sold its 30pc share in T3 to MOD for MOD shares and options. As a result, Metal Tiger now holds around a 12.5pc position in MOD, giving it continuing exposure to T3, where a feasibility study is ongoing is due to complete by the end of the current quarter.

Through their new exploration JV, Metal Tiger and MOD plan to conduct follow-up drilling of ‘very encouraging’ shallow mineralisation along the T4-T23 dome area in Q1 2019. They also plan to undertake initial testing of extensive copper and zinc soil anomalies within the adjacent T20 exploration project over the period. In the second half of the year, the JV plans to conduct follow-up drilling on the A4 dome.

Michael McNeilly, chief executive officer of Metal Tiger, said: ‘The period saw significant advancements the exploration work, undertaken by both MOD and the JV, continuing to deliver encouraging drilling results that demonstrate the potential of area. At the corporate level, Metal Tiger completed an important and value adding transaction resulting in Metal Tiger becoming MOD’s largest shareholder whilst positioning the Company to continue to benefit from, not only T3’s development, but the underexplored, district scale potential of the Kalahari Copper Belt through the JV.

‘The tireless work by our JV partners and our on the ground team has continued to add value to the JV. 2019 will no doubt prove to be an exciting year with T3 moving towards a decision to mine and the extensive JV land holdings continuing to indicate new copper discoveries. We look forward to providing further updates to shareholders in due course.’

Metal Tiger received a 27pc boost earlier this month following the news that MOD had received an unsolicited takeover bid from ASX-listed Sandfire Resources. Sandfire offered to acquire 100pc of MOD’s shares at $0.38 each, valuing the firm at $113m. However, MOD said it believed the indicative proposal undervalued its assets. Despite this, it said it would be ‘willing to engage’ with Sandfire if it presents a more compelling price.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The Author has not been paid to produce this piece by the company or companies mentioned above.
Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.
MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance