Metal Tiger Plc
27 June 2017
Metal Tiger Plc
("Metal Tiger" or the "Company")
Spain – Spring Programme Update
Metal Tiger (LON: MTR), the natural resources investing company is pleased to provide an update on the spring quarter exploration programme at the Logrosan Minerals joint venture in Extremadura, Spain. The Logrosan Minerals JV is targeting Gold and Tungsten at the Logrosan Project and Gold and Antinomy at the Maria Project. A locality map showing the current Logrosan tungsten and gold exploration targets and anomalies mentioned in this release is available to view, Figure 3, on the Spain Projects page of the Metal Tiger website (see http://www.metaltigerplc.com).
- New regional scale gold anomaly identified at Logrosan East. Infill soil sampling and gold analysis has joined El Seranillo North and El Seranillo East into a single large-scale gold anomaly.
- No Rotary Air Blast (RAB) drilling has been undertaken during Q1 2017 with work instead concentrating on infill work delineating the full extent of surface anomalies as part of a diamond/RC drilling target generation.
- Total of 7,345 samples assayed for gold during Q1 2017. Comprising infill sampling and analysis of XRF sample pulps.
- Three broad gold targets at Logrosan:
- Logrosan East Au: 5km long, 50m – 80m wide gold anomaly (formerly El Seranillo North and El Seranillo East)
- Logrosan West: 2.5km long, 180m wide, gold anomaly within a 4km long arsenic anomaly.
- Logrosan South: 6km long, up to 950m wide gold zone.
- New Tungsten (W) anomaly delineated at Logrosan East W Target 3: 2.3km long, 0.9km wide up to 466ppm W in soil.
- 19km long arsenic (As) anomaly coincides with regional magnetic structure linking Logrosan South in the SW to the north of Logrosan East. Passing through W Target 2 and the new W Target 3.
- The JV is currently evaluating options for deep drilling at Logrosan and Maria with a view to testing the extent and tenor of gold mineralisation to shallow open-pitable depths. This would be in addition to deep-drill testing of the two tungsten deposits outlined during 2015 (see recap on tungsten section below).
Michael McNeilly, Chief Executive Officer of Metal Tiger commented:
“We are pleased to report the delineation of a new gold in soil anomaly in the Logrosan project. Extensive infill sampling and gold assay work has effectively served to merge the two El Seranillo gold targets into a single 5km long gold zone. The work undertaken during Q1 2017 has also delineated a new tungsten anomaly located 3km NE and along strike for the Tungsten Target 2 deposit RAB drilled during 2015.
The joint venture partners are now considering our options for the progression of the Project. Our JV partner is in the process of preparing a proposal and budget of possible future work for Metal Tiger to consider. It is our understanding that in order to determine the economic potential of the Project, the best targets would need to be tested by conventional drilling. As such a first-pass mixed RC and diamond drilling programme is currently being costed for the two tungsten deposits, the Maria gold & antimony deposit and the three Logrosan gold anomalies. The addition of deep-drill intersections could potentially add significant value to our Spanish holdings. Further details will be outlined in due course.”
Spring Work Programme Update
During the spring season, work has focussed on the lateral delineation of gold anomalies at the Logrosan licence group. The shallow RAB drilling is currently on hold as the field programme concentrated on soil sample gold analysis, with infill soil sampling and mapping to laterally delineate the existing gold anomalies as part of target generation for a potential deep drill programme planning and costing.
On 12 December 2016, it was reported that the ongoing soil sampling work had outlined a total of four distinct gold anomalies Logrosan South, El Seranillo North, El Seranillo East and Logrosan West. Further work during 2017 has effectively connected the El Seranillo North and El Seranillo East anomalies into one target now called Logrosan East.
The second gold target to be delineated in the Logrosan licence group was the Logrosan South gold target. This structurally controlled gold anomaly, consisting of two parallel structures, currently comprises a total area 6km long and up to 950m wide. Its discovery resulted from regional mapping and the subsequent application for the San Cristóbal Sur licence (reported 19th July 2016).
The Logrosan South gold in soil anomaly is derived from the MEN Finland laboratory (“MEFFA”) soil sample assay data. As MEFFA is not an accredited facility, 627 samples selected from 5 sample profile lines were also submitted to ALS Minerals laboratory in Seville for analysis. There is a good correlation between the sets of results, verifying the anomaly, with ALS showing gold in soil trends up to 0.18g/t Au, with one outlier at 0.9g/t Au. Whilst these values are strongly anomalous for soil samples, only deep drilling can properly test the strength of the underlying mineralisation.
A total of 20 inclined RAB drill holes, with an average depth of 23m, on 4 profiles (P1, P2 etc) were completed at Logrosan South in November 2016, with 8 holes on P1, 6 on P2, 4 on P3 and 4 on P4. The drill profiles were placed across the most southerly of the two parallel structures at a separation of P1 to P2 240m; P2 to P3 440m; and P3 to P4 900m. A total of 123 samples from 8 holes were submitted to ALS for gold analysis, representing the most mineralised intervals from all 4 profiles.
The drill hole assay results, which have become available since the last update, are inconclusive; whilst they confirm the presence of subsurface gold which is coincident with surface anomalies which can be traced between the profiles, they will require follow-up with deeper drilling methods before a judgement can be made regarding grade. The northern parallel structure has not been intersected by any drilling.
The most significant intersection was on P2 where hole LS009 intersected 12.6m @ 0.34g/t Au from surface, including 6m @ 0.41g/t from 5.62m depth.
Infill sampling and reanalysis of samples for gold totals, during the first half of 2017 has resulted in a total of 7,345 new assay results, which have effectively joined together the El Seranillo North gold target (announced 5th April 2016) with the El Seranillo East (announced 12 December 2017) to form a regional scale gold anomaly which is now being termed the Logrosan East anomaly. El Seranillo East was located to the east of the San Cristobal intrusion and approximately 2km southeast of the El Seranillo North gold target, with El Seranillo the locality of historical tin mining.
The combined Logrosan East target area is a linear elongated boot shaped gold anomaly, which is coincident with magnetic, copper and arsenic anomalies along the same trend. The combined target’s total length is circa 5km varying in width from 50m – 80m. The vast majority of samples were analysed by the MEN’s internal laboratory in Finland (“MEFFA”). 58 soil samples were also submitted to ALS for check analysis these ranged up to 0.04g/t Au, supporting the MEFFA findings.
The Antonio Cano licence is currently in the process of being renewed, together with an application to undertake subsurface investigations including deep drilling. Once permissions are granted it is planned that both targets will be tested by trenching and drilling.
In late April 2017, a 65m long channel sample located within a road cutting located on the northerly extension of the Logrosan East gold anomaly, to the north of the El Seranillo North target, returned ALS assay results of 12m @ 0.2g/t Au from 2m composites. Whilst within the El Seranillo North target, a total of 22 chip samples confirmed anomalous gold background over an area of 0.3km2, ranging to a maximum of 4.45g/t Au. The El Seranillo North target is currently 450m by 650m and open both to the north and south, it is interpreted to be a shared contact.
On a regional scale the Logrosan East structure marks the eastern most edge of a strontium (Sr) depletion front emanating from the San Cristobal intrusion.
The Logrosan West gold target is located to the west of the San Cristobal intrusion, it trends NE-SW, parallel to the Logrosan South gold trend, approximately 5km to the northwest. Results show that Logrosan West trend to be approaching 2.5km long, and associated with a 4km long, circa 180m wide, arsenic in soil anomaly.
New Tungsten Target: W Tungsten 3 at Logrosan East
The 2017 sampling work has also delineated a new tungsten anomaly, W Target 3, located 3km due NE of the existing W Target 2 which was RAB drilling during the 2015-2016 programme. This new W Target 3 anomaly is located at the southern end of the Logrosan East gold anomaly, it currently measures 2.3km NE-SW and 0.9km across, with soil assays up to 466ppm W. It is coincident with a regional scale, 19km long, magnetic structure which links together the Logrosan South gold anomaly, the W Target 2 with the Logrosan East gold and tungsten anomalies.
Maria Project progress:
The application for the first renewal of the Maria concession has been lodged and the renewal fees paid. Included with the renewal is an application for a drilling and trenching permit to enable RC and diamond drilling on the target. As the renewal and drilling permit are currently pending, no further work has been undertaken at Maria during 2017.
The JV is currently discussing options for a cost effective first-pass diamond and RC drilling programme at Logrosan and Maria with a view to testing the laterally extensive surface gold anomalies at depth and following up on the two tungsten deposits outlined by the 2015 RAB drilling programme.
With broad targets qualified to near surface depths by geochemistry, geophysics, trenching and RAB drilling, the priority is now to determine the extent and tenor of mineralisation to shallow open-pitable depths.
The addition of deep-drill intersections will add significantly to the potential value of the licence holdings. Additional exploration potential is provided by the existence of historical lead-zinc mines in the Maria licence area, and the historical phosphate mine and tin workings in the Logrosan licence group. Further details of any proposed drill programme will be outlined in due course.
Recap on Tungsten: Major 2015-2016 Q1 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).
During 2015 both targets were subject to first-pass RAB drilling to confirm the near surface tungsten mineralisation and grade. The results of this preliminary drilling were very encouraging, with significant strike length tungsten mineralisation and high-grade tungsten intersections outlined.
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).
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 enjoy the full support of the regional and local government and administration.
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 Energia’s Gambuta uranium deposit is 30km north.
Background to the Logrosán Joint Venture:
Logrosán Minerals Limited is the joint venture operating company for the Logrosán Exploration Project and Maria Gold & Antimony Project. It is held 50%/50% by Metal Tiger and JV partners Mineral Exploration Network (Finland) Ltd (“MEN”). Logrosán Minerals Ltd (a Special Purpose Vehicle "SPV" company) was incorporated in the UK on 13 March 2015.
During the 18 months prior to the joint venture commencing, Metal Tiger's joint venture partner MEN Finland, 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, to earn 50% of Logrosan Minerals Limited. The balancing holding in the SPV is held by MEN.
The Maria Project consists of the Mari Hernández Research Permit (Permiso de Investigación) (the “Maria Licence”) which was originally awarded to Metal Tiger’s JV partners, Mineral Exploration Network (Finland) Ltd (“MEN”). It is currently under application for its first 3-year renewal, to extend it to 30 October 2019. The permit allows exploration for all mineral deposits and resources except radioactive minerals, coal and hydrocarbons and is held through Logrosan Minerals Ltd (“LML”) which is owned 50% by Metal Tiger. The licence area commences approximately 15 kilometres to the north of the 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.
Under the terms of the Maria Project JV, Metal Tiger has the option to provide up to €500,000 during 2016 and 2017 in exploration expenditure. To date Metal Tiger has contributed €350,000 and is on track to contribute a further €150, 000 to fulfil the remaining part of the 2017 programme.
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 acts as the Competent 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:
|Michael McNeilly (Chief Executive Officer)||Tel: +44 (0)20 7099 0738|
|Keith Springall (Finance Director & Company Secretary)||Tel: +44 (0)20 7099 0738|
Spark Advisory Partners Limited
Tel: +44 (0) 2033 683 555
|Tel: +44 (0)1483 413 500|
VSA Capital Limited
|Tel: +44 (0)20 3005 5000|
|Tel: +44 (0)203 757 4980|
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 interests in two potentially near-production stage silver/lead/zinc mines as well as 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 AIM or NEX Exchange (formerly ISDX) partner with whom the Company is engaged.
Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.