Kalahari Metals Limited: Kitlanya East Update

·9 min read

Metal Tiger plc

("Metal Tiger" or the "Company")

Kalahari Metals Limited: Kitlanya East Update

Metal Tiger plc (AIM: MTR), the London Stock Exchange AIM listed investor in natural resource opportunities, is pleased to provide an update in respect of the Kitlanya East Project that is operated by the Botswana copper focussed explorer, Kalahari Metals Limited ("KML"), in which Metal Tiger currently has a 62.17% equity interest.

Highlights:

  • Encouraging progress at the Kitlanya East Project, located approximately 25km southeast of the Sandfire Resources T3 and A4 deposits

  • Airborne geophysics and soil sampling results highlight the potential for the South Fold Target to host Cu-Ag mineralisation in a similar setting to the T3 and A4 deposits

  • Follow-up stratigraphic drill testing will now be undertaken in the central portion of the target area

  • KML anticipates that this will confirm the presence of prospective lower D’Kar Formation stratigraphy, alteration and mineralisation along structures, suitable trap-sites and associated Cu-Ag mineralisation

Following completion of the first phase of drilling at the North Fold target, KML has since focused on delineating the potential of the South Fold Target, considered to have significant potential for Cu-Ag mineralisation hosted in trap-sites above the reduction–oxidation ("redox") contact. Regional soil sampling undertaken in late 2019 identified a Cu-Zn anomaly in the centre of the target upgrading the target potential.

As such, KML commissioned airborne electromagnetic ("AEM") and magnetic surveys over the Kitlanya East Project, with a total of 946 line km of detailed AEM data collected over the Southern Fold Target on a 200m line spacing. This data was reprocessed and subsequently used to interpret stratigraphic marker conductors, local folding and discontinuities in conductive units, potentially related to alteration associated with mineralisation. Following an independent review of this data, KML is confident in the prospectivity of the South Fold Target and potential for parallels to the structural setting at Sandfire Resources’ A4 deposit.

In tandem with collection of AEM and magnetic survey data over Kitlanya East Project, drill chips from several historical reverse circulation drill holes have been relogged. The results of this relogging demonstrate correlation between the South Fold Target and parts of the upper portion of the D’Kar or Mamuno formations, providing further support that the target is an anticline with the most prospective (oldest) stratigraphy located in fold hinge, the shallowest portion.

With airborne geophysics and soil sampling results highlighting the potential for the South Fold Target to host Cu-Ag mineralisation in a similar setting to the neighbouring Sandfire Resources T3 and A4 deposits, follow-up stratigraphic drill testing will be undertaken in the central portion of the target area. KML anticipates that this will confirm the presence of prospective lower D’Kar Formation stratigraphy, alteration and mineralisation along structures, suitable trap-sites and associated Cu-Ag mineralisation.

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

"The processed results from the Q4 2020 airborne geophysics survey and soil sampling programme highlight the potential for the South Fold Target to host Cu-Ag mineralisation in a similar setting to the neighbouring Sandfire Resources T3 and A4 deposits as corroborated by a recently commissioned independent structural assessment.

"With these encouraging results, in the heart of the rapidly developing Kalahari Copper Belt, we look forward to providing details of KML’s follow-on drilling activities planned for the Kitlanya East Project."

As announced on 15 December 2020, KML has signed a Share Purchase Agreement with Cobre Limited ("Cobre"), which will, following completion of the transaction and subject to obtaining change in control approval from the Minister of Mineral, Energy and Water Resources of the Republic of Botswana, result in Metal Tiger owning a 59.57% economic interest in KML (comprising a 49% direct interest and a 20.72% interest in Cobre, which, in turn, will have a 51% interest in KML) (the "Cobre Transaction"). Cobre is listed on the Australian Securities Exchange.

Technical Summary

Illustrative figures for viewing in conjunction with this announcement showing the area concerned (Figure 1) and the below referenced figures (2-10), can be viewed on the Company’s website at: https://www.metaltigerplc.com/kml-update-march

Airborne Geophysics Survey Results

  • A total of 946 line km of detailed AEM data was collected over the Southern Fold Target on a 200m line spacing.

  • An independent data review by structural consulting geologist Brett Davies confirms the prospectivity of the South Target and potential for parallels to the structural setting at Sandfire Resources’ A4 deposit (Figure 2).

  • AEM results delineate a broad 15km long late-time conductor in the central part of the South Fold structure, interpreted to be related to siltstone dominated prospective mid-lower D’Kar stratigraphy (Figure 3).

  • AEM survey data was processed using Geoscience Australia AEM inversion software to create depth sections and 3D volumes, with results used to interpret stratigraphic marker conductors, local folding and discontinuities in conductive units potentially related to alteration associated with mineralisation (Figure 4, Figure5).

  • Inferred gently-dipping, folded conductors in the southwestern part of the survey provide support for a southwest plunge to the target.

  • Conductivity depth sections suggest imbricate shear elements (Figure 6), revealing a complex of smaller folds which appear to increase in amplitude in the core of the target;

  • Local folds have good continuity, plunge locally, doubly plunge or are attenuated by shear providing trap-sites for potential mineralisation.

  • A total of 1,834km of detailed magnetic data was collected on 100m spaced traverse lines over the Southern Fold Target.

  • The detailed magnetic geophysics data has delineated magnetic marker units in the mid-D’Kar Formation (Figure 7), as well as structural discontinuities and local folding in the hinge zone of the South Fold Target (Figure 8). These structural features offer potential pathways and trap-sites for potential Cu-Ag bearing hydrothermal fluids.

  • Differences in the magnetic expression of the northern and southern limbs of the macro fold may be indicative of fold asymmetry with a south-easterly vergence.

Historical Drill Hole Relogging

  • Re-logging of drill chips from several historical reverse circulation ("RC") drill holes located on the northern margin of the South Fold Target suggest they correlate with the upper portion of the D’Kar or Mamuno formations, providing further support that the target is an anticline with the most prospective (oldest) stratigraphy located in fold hinge. A combined magnetic and AEM interpretation is illustrated in Figure 9.

Soil Sampling

  • A total of 1,603 geochemical soil samples were collected along 1km traverses at 50m spacing.

  • Sample results highlight a broad 9km long zone of elevated Cu, Pb, Zn zone which correlates with the central portion of the South Fold Target along with local anomalies often associated with interpreted structures (Figure 10). These support for the possibility of underlying Cu-Ag mineralisation.

  • All samples were sieved to retain the -90µm fraction and analysed using a NitonTM XL2 pXRF along with appropriate reference samples and blanks for quality control.

Next Steps

  • Follow-up stratigraphic drill testing will be undertaken in the central portion of the target area to confirm the presence of prospective lower D’Kar Formation stratigraphy, alteration and mineralisation along structures, suitable trap-sites and associated Cu-Ag mineralisation.

Project Background:

Kalahari Metals Limited, which was incorporated in England & Wales on 3 May 2017, holds interests in 12 highly prospective exploration licences covering a total area of 8,595km2 in the Kalahari Copper Belt of Botswana, comprising two 100% owned exploration licences, five exploration licences subject to a binding earn-in agreement with Triprop Holdings (Pty) Limited (includes the Ngami Copper Project), and five exploration licences held by 100% owned subsidiary, Kitlanya Limited.

Metal Tiger holds a conditional 2% net smelter royalty over all KML’s wholly owned licences, being seven licences covering, in aggregate, 6,650km2 (together, the "Royalties"). On completion of the Cobre Transaction, it has been agreed that the conditions attached to the Royalties will fall away. The five exploration licences owned by Triprop Holdings (Pty) Limited (in which KML has a 51% interest) do not form part of the Royalties.

Further details are available under the Project Investments section of the Company’s website at: https://www.metaltigerplc.com/portfolio/project-investments/kalahari-metals.

References

1: Source: Sandfire Resources Tshukudu Operations https://www.sandfire.com.au/site/Business/sandfire-emea/Tshukudu-Operations

Qualified Person's Statement

The technical information contained in this announcement has been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Qualified Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal 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

Enquiries:

Michael McNeilly

(Chief Executive Officer)

Tel: +44 (0)20 7099 0738

Mark Potter

(Chief Investment Officer)

James Dance

Jack Botros

Georgia Langoulant

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

Hugo Liddy

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") 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.

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Contacts

Metal Tiger plc