A4 Ore Reserve and Motheo Expansion PFS - Replacement


The issuer advises that the following replaces the Metal Tiger plc Sandfire A4 Step-Out Drilling Update announcement released at 08:38 AM British Summer Time on 22 September 2021.

The headline of the announcement has been changed from 'Sandfire A4 Step-Out Drilling Update' to 'A4 Ore Reserve and Motheo Expansion PFS'.

The full corrected version is shown below.

22 September 2021

Metal Tiger plc

("Metal Tiger" or the "Company")

A4 Ore Reserve and Motheo Expansion PFS

Metal Tiger plc (AIM: MTR, ASX: MTR), the AIM and ASX listed investor in natural resource opportunities, is pleased to provide an update in relation to its investment in Sandfire Resources Limited (“Sandfire”) which contains information relevant to Metal Tiger's 2% uncapped net smelter royalty over circa 8,000km2 of Sandfire's licence holdings in the Kalahari Copper Belt including PL190/2008 (excluding the T3 Motheo Project area), which hosts the A4 deposit. Metal Tiger also has a capped US$2m 2% net smelter royalty over production from the T3 Motheo mine. Sandfire today announced a Maiden Ore Reserve for the A4 Deposit and a PFS confirming 5.2Mtpa for the Motheo Copper Project.

Metal Tiger is currently interested in 6,143,357 Sandfire shares representing approximately 3.4% of Sandfire’s issued share capital. As announced on 08 December 2020, 2,842,667 of the Sandfire shares held by the Company are subject to an equity derivative financing arrangement with a global investment bank.


  • Maiden Probable Ore Reserve completed for the A4 Deposit, located 8km west of the Motheo Copper Mine in Botswana:
  • 9.7Mt at 1.2% Cu and 18g/t Ag for 114kt of contained copper metal and 5.7Moz of contained silver.
  • 85% of the contained copper in the updated A4 Mineral Resource announced on 21 July 2021 now classified as Ore Reserves.
  • Ore Reserve confirms A4 as a high-grade source of additional ore feed for the Motheo Copper Mine, underpinning an expanded long-life 5.2Mtpa Production Hub.
  • Sandfire will now move directly to a Definitive Feasibility Study (DFS) for the 5.2Mtpa Motheo Expansion, with the DFS expected to be completed in Q3 of FY2022.
  • Pre-Feasibility Study (PFS) completed to inform the A4 Ore Reserve has indicated outstanding project economics from an expanded 5.2Mtpa mining operation compared to the initial 3.2Mtpa base case development scenario (see ASX Announcement 1 December 2020):
  • 116% increase in pre-tax NPV7% to US$672 million ($937 million) and IRR of 36%,
  • Mine life of 10.5 years, peak production of 60ktpa copper in concentrate, strip ratio of 6.5 waste to ore,
  • 15% decrease in LOM all-in sustaining costs to US$1.56/lb.
  • Opportunities identified to further enhance the economic and technical outcomes of the A4 PFS through integrated mine scheduling and pit optimisation, with these enhancements to be incorporated into the DFS for the 5.2Mtpa Expansion Case.
  • Total pre-production development capital increased to US$366 million ($504 million), incorporating development costs for the A4 Open Pit plus an updated cost forecast for the Motheo plant to account for increased steel costs, foreign exchange movements and COVID-related disruptions.
  • Outstanding potential for further Resource and Reserve growth, with recent step-out drilling confirming high-grade mineralisation ~1.2km south-west of the A4 Mineral Resource envelope and drilling continuing across an exceptional target pipeline within Sandfire’s extensive land-holding in the Kalahari Copper Belt.

A link to the Sandfire announcement released today can be found below:

A4 Ore Reserve and Motheo Expansion PFS:


Michael McNeilly, Chief Executive Officer of Metal Tiger, commented:

"It is in the words of Mr. Simich a pivotal moment in Sandfire’s plans to establish a major new long-term mining hub at Motheo. In my opinion these sorts of robust numbers help provide a steady base from which to grow, both underpinning the investment case in Sandfire as well as underpinning a base case value of the 2% uncapped royalty where I believe A4 has significant room to expand but also that there will be additional discoveries to feed the hub that will be captured by MTR’s royalty. Exploration, especially resource drill outs in the KCB are not budget light affairs so the fact that Sandfire are committed to continuing significant drilling both in the near-mine area but also over the wider Kalahari Copperbelt is why I believe the Kalahari Copperbelt will emerge as a significant production hub in the medium term.

It is also worth noting that significant work has already progressed on areas such as environmental studies and approvals, met testwork, geotechnical drilling and analysis and mine scheduling and open pit optimisation. Subject to currently fast-tracked Environmental & Social Impact Assessment Studies and Mining Licence approvals it is clear that should further optimisation, which includes combined T3 and A4 Open Pit scheduling prove optimal then we could potentially see A4 ore production brought forward. We look forward to the news of debt funding as well as the 5.2Mtpa Expansion Case DFS scheduled to be completed in Q3 FY2022 (Q1 CY2022). Given the speed from discovery of A4 in early Q12020 to today we remain confident that Sandfire will continue to deliver key milestones at a quick pace.”

For further information on the Company, visit: www.metaltigerplc.com


Michael McNeilly

(Chief Executive Officer)

Tel: +44 (0)20 3287 5349

Mark Potter



(Chief Investment Officer)


James Dance

James Harris

Robert Collins


Strand Hanson Limited (Nominated Adviser)

Tel +44 (0)20 7409 3494

Paul Shackleton

Steve Douglas



Arden Partners plc (Broker)

Tel: +44 (0)20 7614 5900

Gordon Poole

James Crothers

Rebecca Waterworth



Camarco (Financial PR)

Tel: +44 (0)20 3757 4980

Notes to Editors:

Metal Tiger PLC is admitted to the AIM market of the London Stock Exchange AIM Market ("AIM") and the ASX Market of the Australian Securities Exchange Market ("ASX") with the trading code MTR and invests in high potential mineral projects with a base, precious and strategic metals focus.

The Company's target is to deliver a high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector. Metal Tiger has two investment divisions: Equity Investments and Project Investments.

Equity Investments invests in undervalued natural resource companies. The majority of its investments are listed on AIM, the TSX and the ASX, which includes its interest in Sandfire Resources Limited (ASX: SFR). The Company also considers selective opportunities to invest in private natural resource companies, typically where there is an identifiable path to IPO. Through the trading of equities and warrants, Metal Tiger seeks to generate cash for investment for the Project Investments division.

Project Investments is focused on the development of its key project interests in Botswana, where Metal Tiger has a growing interest in the large and highly prospective Kalahari copper/silver belt through its interest in Kalahari Metals Limited.

The Company actively assesses new investment opportunities on an on-going basis and has access to a diverse pipeline of new opportunities in the natural resources and mining sectors. For pipeline opportunities deemed sufficiently attractive, Metal Tiger may invest in the project or entity by buying publicly listed shares, by financing privately and/or by entering into a joint venture.

Category Code: MSCU
Sequence Number: 746463
Time of Receipt (offset from UTC): 20210922T093349+0100


Metal Tiger plc


Metal Tiger plc