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
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