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Kalahari Metals Limited: Project Update

--(BUSINESS WIRE)--  LONDON

15 December 2020

Metal Tiger plc

("Metal Tiger" or the "Company")

Kalahari Metals Limited: Project 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 copper focussed explorer, Kalahari Metals Limited (“KML”), in which Metal Tiger currently has a 62.17% equity interest.Botswana

The first phase of diamond drilling focussed on the delineation of stratigraphic markers for copper mineralisation at KML’s Kitlanya East (“KIT-E”) Project has completed with five diamond drill holes (KITE01-05) totalling 1,709m completed (the “Stratigraphic Drilling”), along with additional phases of soil geochemical sampling.

This work has been designed to target prospective geological settings analogous to the neighbouring Sandfire Resources Limited’s (“Sandfire”) T3 and A4 deposits. T3 is approximately 5km from the northern licence of the KIT-E project (“North Target”).

The results of the stratigraphic drilling have been incorporated into an innovative Mineral Systems Analytical Model in conjunction with the reprocessing and re-inversion of the 2019 airborne electromagnetic (“AEM”) geophysical survey data; soil geochemistry and historical drill core logging; to result in the identification of compelling drilling targets. A follow-up drill programme of reverse-circulation (“RC”) and diamond drilling is being planned to test these targets.

As announced today 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 , result in Metal Tiger owning a 59.57% economic interest (comprising a 49% direct interest in KML and a 20.72% interest in Cobre) (the “Cobre Transaction”).Republic of Botswana

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

“We are excited to report that the work at the KML Kitlanya East Project, located in the highly prospective Kalahari Copper Belt, has with the integration of analysis of the stratigraphic drilling interpretation, reprocessed airborned geophysics and soil sampling data, identified multiple stratigraphic dome targets that we consider highly prospective for hosting copper–silver mineralisation. Given its proximity to the Sandfire T3 development project and A4 resource and prospect, this is of significant value to both KML and Metal Tiger and subject to completion of the transaction announced today, Cobre Limited.

“Our interests in the Kalahari Copper Belt continue to mature positively and we look forward to providing further updates on a planned drill programme to test these targets in due course.”

Technical Summary

Stratigraphic Drilling Programme

Soil Sampling

Reprocessing of AEM Data

Target Generation

for viewing in conjunction with this announcement showing the area concerned (Figure 1) and the below referenced figures (2-6), can be viewed on the company website at:Illustrative figureshttps://www.metaltigerplc.com/kml-update-december

Stratigraphic Drilling Programme

The Stratigraphic Drilling programme comprising four diamond holes for total of 1,709m of drilling was carried out in two phases, due to COVID-19 pandemic lockdown restrictions, by the drilling contractor OreZone Drilling. Five holes (see Table 1) were drilled along the northern margin of the KIT-E project using AEM conductors as a guide. Two of the five holes (KITE-01 and KITE-03) were abandoned due to poor intersection angles (being replaced by KITE-02 and KITE-04). Drill collar positions are illustrated in Figure 2 (see above link).

Table 1: Kitlanya Project Stratigraphic Drillhole Collar Table

Results from the stratigraphic drilling are summarised as follows:

In addition to the recently completed holes, drill cores from historical drilling undertaken by New Hana Copper Mining Ltd ("New Hana") were located and relogged. The geological logs from New Hana holes NH01 to NH07D, combined with logs from KITE-05, provide a NW-SE section across the main structure of interest. New Hana undertook a combination of percussion, RC and diamond drilling, magnetic geophysics and TerraLeach (TL1) soil sampling as a previous licence holder of the area (PL070/2017).

Historical drill hole results are summarised as follows:

These results describe a broad anticlinorium with superimposed doubly plunging anticlines and synclines. The presence of mid to lower D’Kar Formation stratigraphy, abundant pyrite, pyrrhotite and carbonaceous siltstones provides encouragement that the stratigraphic position in the D’Kar Formation, host rocks and trap-sites are analogous to neighbouring Sandfire T3 and A4 deposits. Intersection of thrusts with hydrothermal alteration, dilational quartz-carbonate veining and associated trace Cu-Pb-Zn mineralisation provide evidence for the development of appropriate fluid pathways.

See Figure 2 (linked above): Locality map illustrating the position of recently completed stratigraphic holes along with historical drilling. Underlay of the lithostructural interpretation with AEM conductors highlighted on derivative image magnetic data.

Soil Sampling

A total of 1,101 soil samples were collected over the North Target, providing infill to an earlier phase of regional soil sample traverses. Samples were screened to -90 µm fraction and analysed using a Niton pXRF along with appropriate blanks and standard reference samples. The pXRF results provide a useful first pass review prior to sending samples for laboratory assay.TM

Soil sampling results have identified distinct Cu and Zn anomalies which correlate with historical (New Hana) TerraLeach TL1 Cu sampling results on the western portion of the North Target. Of particular interest is the relationship between Cu anomalies and interpreted thrusts suggesting the metal source may be introduced along thrust faults.

See Figure 3: Soil sample results (Cu) on vertical derivative magnetic image.

Reprocessing of AEM Geophysics Data

AEM geophysics data collected over the north target area in 2019 using NRG’s XCite system has been reprocessed and inverted using GALEI software which has extracted additional structural information compared to previous results. Interpretation of results has aided identification of anticline hinge zones which present targets for Cu-Ag mineralisation.TM

See link to Figure 4: Conductivity sections and volume illustrating the significant structural detail apparent in the reprocessed AEM data; and Figure 5: Section based 3D interpretation of AEM data highlighting anticline fold axis. Inset of geological interpretation based on drilling and AEM.

Target Generation

Priority areas for drill testing have been identified using a Knowledge-driven Mineral Systems Analysis approach using the Sandfire A4 deposit as a guide. Essentially, key vectors to mineralisation relating to trapsite geology (stratigraphy, proximity to conductive carbonaceous siltstones, anticlines and local fold hinges), pathways for hydrothermal fluid movement (thrusts, shears, faults, fault jogs, WNW trending structures and dislocations) and evidence for alteration (breaks in AEM conductors) and Cu mineralisation (Cu and Zn soil anomalies), have been combined to create a prospectivity map highlighting priority areas.

See linked Figure 6: Examples of different evidence layers used for targeting. Layers are defined in terms of distance to- properties.

Project Background

Kalahari Metals Limited, which was incorporated in & on , holds interests in 12 highly prospective exploration licences covering a total area of 8,595km in the Kalahari Copper Belt of , 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.EnglandWalesBotswana3 May 20172

Metal Tiger holds a conditional 2% net smelter royalty over all KML’s wholly owned licences, being seven licences covering, in aggregate, 6,650km (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.2

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

This announcement contains inside information for the purposes of the market abuse regulation (EU No. 596/2014) (“MAR”).

Qualified Person's Statement

The technical information contained in this announcement has been read and approved by Mr (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. is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Metal Tiger PLC to provide technical support.Nick O'ReillyMr O'Reilly

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

Enquiries:

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.

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.Equity Investments

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

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.

Metal Tiger plc

Source: Metal Tiger plc

  • Stratigraphic drilling has confirmed the potential for shallow structurally controlled Cu-Ag mineralisation associated with anticlines and dome targets in the North Target.
  • D'Kar Formation stratigraphy intersected, including marker dark carbonaceous siltstones which correlate with conductors in the AEM data.
  • Trace Cu, Pb and Zn mineralisation identified on thrust/shear planes and in underlying extensional zones associated with dilational quartz-carbonate veins (holes KITE-02 and KITE-05).
  • Important alteration minerals (sericite, albite and haematite) often associated with the distal portions of mineral deposits in the Kalahari Copperbelt have been identified in proximity to several thrust zones (holes KITE-02 and KITE-05).
  • Total of 1,101 additional soil geochemistry samples collected over the North Target, providing infill to an earlier phase of regional soil sample traverses.
  • Significant Cu and Zn anomalies demonstrating a distinct correlation with thrusts interpreted from high-resolution magnetic data.
  • Results also correlate well with historical TerraLeach Cu sampling results on the western portion of the North Target.
  • Remodelling of the AEM geophysics data has provided significant additional information on fold geometry which has been correlated with the stratigraphic drill results to prioritise geological ‘dome’ targets for follow-up drilling.
  • Priority areas for drill testing have been identified using a Knowledge-driven Mineral Systems Analysis approach using the geological learning from the Sandfire A4 deposit as a guide.
  • Analytical approach generates key vectors to mineralisation relating to trap-site geology (stratigraphy, proximity to conductive carbonaceous siltstones, anticlines and local fold hinges), pathways for hydrothermal fluid movement (thrusts, shears, faults, fault jogs, WNW trending structures and dislocations) and evidence for alteration (breaks in AEM conductors) and Cu mineralisation (Cu and Zn soil anomalies).
  • The key vectors are combined to generate a prospectivity map highlighting the priority areas for follow-on drill testing.
  • Hole KITE-02
    • Intersects package of siltstones, sandstones and marls of the lower DKF.
    • Includes intersections of carbonaceous siltstone unit, corresponding with the position of AEM conductors.
    • Intersection of several zones of shearing and dilational veining (quartz-carbonate) often with trace Cu-Pb-Zn mineralisation.
    • Higher proportion of siltstone to sandstone, low magnetic susceptibility, carbonaceous siltstone units, and abundant pyrite and pyrrhotite suggests this is lower in the DKF stratigraphy than other holes.
  • Hole KITE-04
    • Intersects package of sandstones and siltstones in the middle D’Kar Formation.
    • Several shear zones and mylonitic thrusts were intersected with extensive associated hydrothermal alteration.
    • High magnetic susceptibility, sandstone composition and dominance are more indicative of transition zone to middle D’Kar Formation.
  • Hole KITE-05
    • Intersects a package of sandstones and siltstones probably in the lower portion of the middle D’Kar Formation.
    • Extensive pyrite and pyrrhotite with several intersections of trace Cu, Pb, Zn associated with quartz-carbonate veining.
    • Low magnetic susceptibility and higher proportion of siltstones vs KITE-04 and minor carbonaceous siltstone intersections suggest this hole is located lower in stratigraphy (although probably higher than KITE-02).
  • All holes are located in the D’Kar Formation
  • NH01D and NH02D are likely in the lower portion of the middle D’Kar Formation
  • NH03D – NH06D intersect units in the middle D’Kar Formation
  • NH07D is likely in the upper portion of the D’Kar Formation

Drill Hole No

UTM_E

UTM_N

RL (m)

EOH (m)

Azimuth

Dip

KITE-01

642368

7638590

1108

87.15

315

-70

KITE-02

642368

7638590

1108

356.90

135

-65

KITE-03

638083

7636653

1120

39.12

315

-65

KITE-04

638083

7636653

1120

567.38

135

-65

KITE-05

626982

7629850

1125

681.17

135

-75

Michael McNeilly

(Chief Executive Officer)

Tel: +44 (0)20 7099 0738

Mark Potter

(Chief Investment Officer)

 

Richard Tulloch

James Dance

Jack Botros

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

Quick facts: Metal Tiger PLC

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Market: AIM
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