Metal Tiger Receive Important KEMCO Report Amid Good T3 Study Report

LONDON (Alliance News) - Metal Tiger said Thursday it had received the final report for its ...

Alliance News 7 December, 2017 | 12:05PM
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LONDON (Alliance News) - Metal Tiger said Thursday it had received the final report for its hydrogeology at its Thailand lead, zinc and silver mines in an "important" step in developing its environmentally-responsible joint venture ready for listing.

The natural resources investment firm commissioned the Groundwater Research Institute based at the Khon Kaen University in Thailand to undertake the study related to its Song Toh and Boh Yai mines.

These mines are part of Metal Tiger's KEMCO Mining PLC joint venture which plans to bring the Song Toh and Boh Yai mines into commercial production in an "environmentally responsible manner."

The study, Metal Tiger said, forms an "important" part of its development plan for the Song Toh and Boh Yai mines in preparation for the planned initial public offering of KEMCO.

In September, Metal Tiger decided to delay the KEMCO IPO until early 2018. This was pending clarification on some aspects of the new Thai minerals act and its National Minerals Management Policy.

The study will result in detailed 3D models of the surface and subsurface waterflow at the sites allowing for more in-depth interpretations of aquifer location, storage capacity and more.

"These interpretations will allow the company and other interested parties to understand how and where water movement controls the distribution of metals currently existing in the natural environment throughout the year as well as anticipate how the company's water management plans will be able to control the distribution after the resumption of mining in an environmentally responsible manner", Metal Tiger said in a statement.

Metal Tiger added KEMCO is "committed to bringing the Song Toh and Boh Yai mines back into production with full attention to environmental impact awareness, control, and compliance. This study and the monitoring program that has accrued from it are critical elements in the process of ensuring that this commitment is met."

In an earlier statement, Metal Tiger said it had received "encouraging" early results from a scoping study at its T3 Underground Project in the Kalahari Copper Belt in Botswana. Metal Tiger owns a 30% interest in the project.

Metal Tiger said the report supported the initiation of a 30-hole resource drilling programme to target high-grade veins with underground mining potential. Metal Tiger singled out assay results from three down holes, in particular.

Hole MO-G-82D produced 7.2 metres at 1.9% copper and 39 grams per tonnes silver from 219 metres. Hole MO-G-84D produced 5.9 metres at 1.7% copper and 8 grams per tonnes silver from 213 metres. Hole MO-G-88D produced 9.7 metres at 1.5% copper and 31 grams per tonnes silver from 168 metres.

"We are very encouraged by the initial findings of the T3 Underground Project investigations and the prospect that room-and-pillar underground mining of the high-grade copper and silver veins, developed simultaneously to the planned T3 Open-Pit mine could make a substantial contribution to the T3 profitability", Metal Tiger Chief Executive Officer Michael McNeilly said.

"Sharing a planned central scalable processing plant at T3 between both the T3 surface and underground mining operations and possible neighbouring deposits is an attractive proposition in the precursory modelling", McNeilly added.

Metal Tiger expect the scoping study to complete in the third quarter of 2018.

Shares in Metal Tiger were flat at 2.03 pence on Thursday.

By Ahren Lester;

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Security Name Price Change (%) Morningstar
Metal Tiger PLC 1.46 GBX -13.95 -
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