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Metal Tiger plc (MTR)

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Tuesday 06 December, 2016

Metal Tiger plc

Botswana - T3, Robust Scoping Study Results

Botswana - T3, Robust Scoping Study Results

Metal Tiger plc

Metal Tiger Plc

("Metal Tiger" or the "Company")

Botswana – T3, Robust Scoping Study Results

Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed investor in strategic natural resource opportunities is pleased to provide an update with regard to the exploration programme at the Company’s Joint Venture (“JV”) project with partners MOD Resources (ASX:MOD) in the Kalahari Copper Belt in Botswana (70% MOD Resources / 30% Metal Tiger).

Summary results of the Scoping Study for the Target 3 (T3) Copper-Silver Deposit are provided below.

In addition, we would refer to the announcement released today by MOD Resources which contains images and diagrams that may assist readers in an understanding of the project. This announcement can be viewed through the following link:

Michael McNeilly, Chief Executive Officer of Metal Tiger commented: “We are delighted to report the robust outcome of this Scoping Study in respect of the T3 Copper-Silver deposit in Botswana in which Metal Tiger has a 30% direct project interest. The preliminary base case NPV amounts to approximately US$180m and the preliminary upside case model NPV amounts to US$297m at $2.53 lb/cu and $3.00 lb/cu. This data is exceptionally positive particularly given the short period since the original discovery in March 2016, and given the low cost of circa US$2.5m expended by the Joint Venture partners to get to this point. In just over 11 months from first drilling the team has delivered, at very low cost, a Maiden JORC Resource and Scoping Study for an open pit mine at T3. Also of significance, the T3 is only the first of a series of high profile targets within the highly prospective region covered by the Joint Venture Licences, with the T3 Deposit only 1 square kilometre of the approximately 1,000 square kilometres constituting the prospective T3 Dome Structure.

The release of this Scoping Study and the interest shown in the project recently at Mines and Money London marks a major step forward towards the project objective of becoming a low cost, and long life Botswanan copper producer and bodes well for Metal Tiger to consider corporate opportunities. The JV continues its work proactively to develop the T3 deposit and further investigate additional opportunities to add step changing value to the Botswanan Joint Venture through the discovery of further deposits within the licence areas. In this regard, further news is anticipated in the near term.

On a final note, it was great to spend time with Julian Hanna and Jacques Van-Rensburg from MOD Resources before and during Mines and Money London, they have truly delivered on our joint strategy and I would like to extend my thanks to them and the MOD team for their hard work in delivering this result so rapidly."


  • T3 Scoping Study is the first detailed study to be completed for the T3 Copper-Silver Deposit. Total cost from discovery to completion of the scoping study is only circa US$ 2.5M over 9 months.
  • The Scoping Study is equivalent to a Preliminary Economic Assessment (PEA), it is a being a low level technical and economic assessment that is not sufficient to support the estimation of ore reserves, further work is be required before Ore Reserves can be outlined or to provide any assurance of an economic development case.
  • Optimised design for a 220m deep open pit mining operation with on-site processing plant to treat 2Mtpa of ore with low cost expansion optionality if required. Pre-stripping of the first stage of the planned open pit is modelled to commence in 2019 with ore processing modelled to commence later in 2019.
  • Design and models will be taken forward as the base case into a Prefeasibility Study (PFS) starting early 2017.
  • Preliminary Base Case Model indicates robust financial metrics assuming consensus pricing (US$2.53/lb Cu) which is approximately 5% below current Cu spot price:
  • Estimated pre-tax NPV10% approximately US$180M and IRR of 31%
  • Average annual pre-tax cash flow approximately US$44M pa
  • Estimated LOM production average 21.8ktpa Cu and 665kozpa Ag
  • Mine life of 10 years with 9.25 years of production
  • Estimated total project cost (=/-35%) circa US$135M (MTR share US$40.5M) including US$18M pre-strip and US$18.3M contingency.
  • LOM C1 costs of US$1.29/lb Cu including silver credits
  • Expected payback of 2.6 years.
  • Preliminary Upside Case Model indicates stronger financial metrics assuming elevated Cu price (US$3.00/lb):
  • Estimated pre-tax NPV10% approximately US$297M and IRR of 42%.
  • Average pre-tax annual cash flow approximately US$65M pa.
  • C1 costs are estimated at US$1.31/lb Cu including silver credits.
  • Expected payback period approximately 2 years.
  • Each US 10 cent/lb rise in Cu price estimated to add approximately US$ 25M to NPV.
  • Mineralised sequence which hosts T3 resource largely untested along strike and down dip.
  • T3 is ideally located within 12km of the Ghanzi Highway in an area of freehold cattle farms. MOD have been advised by Botswana Power Corporation that grid power in planned to be extended along the Ghanzi Highway in mid 2019.

Next Steps:

  • Progress to a Prefeasibility Study (PFS) in early 2017. Build on the findings of the Scoping Study and initiate the following additional studies as part of the PFS;
  • Detailed Environmental Studies;
  • Hydrological testing and modelling of potential aquifer in area surrounding T3
  • Geotechnical testing in area of planned pit
  • Metallurgical testwork to firm up process plant design criteria.
  • Investigate availability of second hand plant and equipment to potentially reduce plant capital.
  • Drill for potential resource extensions at the western end of the current planned pit.
  • Prefeasibility Study work estimated to cost a total of US$ 1.43M, with an additional US$2.71M to take to a definitive or bankable Feasibility Study level.
  • In parallel with the PFS, in early 2017 exploration work will test a large area (~250km2) within the T3 Dome directly north of T3 for similar type sediment hosted deposits. The T3 Dome is interpreted to be extend over 50km in length and is covered by MOD and Metal Tiger joint venture prospecting licences.
  • Drilling has already commenced testing for shallow mineralisation along strike from T3 and a 3D IP survey will start in early 2017 to help define targets for deeper drilling.


The T3 Scoping Study is the first detailed study to be completed for the T3 Copper-Silver Deposit. It has been undertaken to determine the potential viability of an open pit mine and sulphide flotation processing plant constructed onsite at T3 and to reach a decision to proceed to prefeasibility studies commencing in early 2017. As the Scoping Study, equivalent to a Preliminary Economic Assessment (PEA), is the precursor to the more detailed Prefeasibility Study.

Scoping studies are based on low level technical and economic assessments that are not sufficient to support the estimation of ore reserves. Further evaluation work and appropriate studies are required to estimate any ore reserves and to provide any assurance of an economic development case.

Approximately 88% of the total Life of Mine (LOM) production target is in the Indicated Resource category with 12% in the Inferred Resource Category. There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further infill drilling of the T3 Resource will result in the determination of indicated mineral resources or that the production target itself will be realised.

Although the assumptions used in the Scoping Study are considered reasonable, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved.

Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the T3 Scoping Study.

The T3 Scoping Study consists of five key areas of independent study sections; Resource Estimate; Metallurgical Testwork; Mine Design and Scheduling; Mineral Process Engineering and Infrastructure; and Environmental and Social Permitting and Baseline studies. Summary findings of these constituent sections is outlined below.

The results and key assumptions from these constituent studies have been used to generate two preliminary production and financial models (‘Preliminary Models’). The Preliminary Models have resulted in potential outcomes which are summarised in the highlights above and in Table 3 Material Assumptions below.

The Preliminary Models include scoping level production and financial projections and cost estimates.

Further evaluation work and appropriate studies are required before any assurance of a possible economic development case at T3 can be given. The overall estimate of capital cost accuracy is currently determined to be ± 35%.

The progression of the project to mine stage is subject to positive outcomes of both a Prefeasibility Study and a Feasibility Study and is subject to obtaining suitable funding for, the currently estimated, total development capital cost of approximately US$ 135M.

Preliminary Base Case

Assumes consensus copper pricing (US$2.53/lb) which is marginally below the current spot price at the time of this announcement.

The model assumes a 2Mtpa open pit mining operation commencing mid 2019 with on-site processing resulting in a mine life of approximately 10 years (LOM) with 9.25 years of production. Estimated production for first 3 years is 22ktpa Cu and 660kozpa Ag, with LOM average 21.8ktpa Cu and 665kozpa Ag.

Total project capital is estimated at approximately US$135M. This includes US$18M for the open pit pre-strip and a US$18.3M contingency which represents 20% of project establishment capital.

The average annual cash flow is approximately US$44M pa with a payback of 2.6 years. The estimated LOM C1 cash cost is US$1.29/lb Cu including silver credits.

This results in an estimated NPV10% of approximately US$180M and an IRR of 31%.

Preliminary Upside Case

Assumes an elevated copper price (US$3.00/lb)

The model assumes the same production parameters and costs as the Base Case.

The average annual cash flow is approximately US$65M pa with a payback of 2 years. The estimated LOM C1 cash cost is US$1.31/lb Cu including silver credits.

This results in an estimated NPV10% of approximately US$297M and an IRR of 42%.

Sensitivity Analysis

The sensitivity of the NPV10% to copper price, silver price and operating costs is set out in Table 1.

Table 1: NPV Sensitivity Analysis

Sensitivity   NPV (US$M)
-10%   Current   +10%   +20%
Copper Price 116 180 244 308
Silver Price 174 180 186 192
Operating Cost   200   180   160   140


All consultants engaged by MOD in the T3 Scoping Study have provided their consent to the data and interpretations contained in this announcement.

Mr Royce McAuslane, an independent consultant from Independent Metallurgical Operations, compiled the preliminary assumptions, projections, and conceptual financial models for the T3 scoping study.

The scoping study uses information, assumptions and interpretations provided by the following independent consultants (Table 2) who have consented to the information being used within the context of this announcement.

Table 2: Scoping Study Independent Consultants


Independent Consultant


Component of Scoping Study

Mr A I Pretorius (South Africa) Resource Estimate

Independent Metallurgical Operations Pty Ltd (IMO)

Metallurgical Testwork
Sound Mining Solution (Pty) Ltd (South Africa) Mining Study (Mine Design and Scheduling)
Minnovo Pty Ltd (Australia) Process Engineering and Infrastructure

Karunya Efforts (Pty) Ltd trading as Karunya Consulting


Environmental and Social Permitting and


1. Resource Estimate

MTR announced results from the T3 Mineral Resource Estimate on 26 September 2016.

The maiden Mineral Resource Estimate comprises a total 28.36Mt containing approximately 350kt of copper (~772Mlbs copper) and 14.27Moz of silver (Table 3). This includes a high-grade resource using a 1.5% copper cut-off grade, which consists of 8.48Mt grading at 2.16% copper and 30.6g/t silver, containing approximately 183kt of copper and 8.34Moz of silver.

Approximately 64% of the Resource (0.5% Cu cut-off) is in the Indicated Resource category. Further drilling during the PFS will aim to convert more of the Inferred Resource into the Indicated Resource.

Table 3: T3 Phase One Mineral Resource















    Cu%       Cu%   Ag g/t   Cu (tonnes)   Ag (oz)
Indicated 0.5 18,071,000 1.35 16.7 244,320 9,724,550
1 10,103,000 1.84 24.2 186,198 7,848,794
    1.5   6,773,906   2.12   29.6   143,675   6,450,935
Inferred 0.5 10,287,000 1.03 13.7 105,853 4,546,534
1 3,162,296 1.82 26 57,396 2,640,127
    1.5   1,706,001   2.3   34.5   39,221   1,892,814
TOTAL 0.5 28,358,000 1.24 15.7 350,221 14,271,083
(Indicated 1 13,265,000 1.84 24.6 243,678 10,488,664
& Inferred)   1.5   8,479,907   2.16   30.6   182,912   8,343,592

2. Metallurgical Testwork

MTR announced results from testwork of T3 sulphide ores on 4 October 2016.

The preliminary metallurgical testwork conducted by IMO confirmed excellent copper recoveries up to 96.5% into high grade copper concentrates (up to 47.3% Cu), see Table 4.

The results demonstrated high concentrate grades, between 33% and 60.6% Cu, can be achieved at high recoveries, between 93.8% and 98.7% Cu, for all three copper sulphide domains (chalcopyrite, bornite and chalcocite) in disseminated and vein hosted mineralisation within the T3 Resource. Silver recoveries were also excellent (up to 97.5%) from samples of high-grade chalcocite ores.

The concentrates were low in deleterious elements (e.g. arsenic up to 279ppm As) and were generally well below penalty levels for smelters. Additional testwork is required to optimise recoveries and concentrate grades and provides an opportunity for further improvements at the feasibility stage.

Preliminary results of Bond Work Index tests indicate that power requirements for grinding the ore are expected to be relatively low.

Table 4: T3 Flotation Testwork Results




  Calc Head   Copper   Silver  

Bond WI


Cu %   Ag ppm % Rec  

Grade %

% Rec  


Chalcopyrite 4.1 1.40 7 96.5 33.0 65.9 111 14.5
Bornite 3.1 1.54 38 94.7 47.3 90.2 1101 12.3
Chalcocite 3.3 1.26 17 93.8 36.0 88.8 453 14.1
HG* Chalcopyrite 11.3 4.09 40 98.0 35.5 96.3 340 -
HG* Bornite 8.6 4.25 93 96.3 47.6 92.3 996 -
HG* Chalcocite 11.2 6.86 149 98.7 60.6 97.5 1304 -

Note*: HG = high grade Cu composite samples (>4.0% Cu and >40pp Ag)

3. Mining Study

The unusual geometry of the T3 deposit with wide and continuous zones of shallow dipping mineralisation provided the ideal opportunity to explore the potential for low cost, open pit mining.

Sulphide mineralisation is continuous from shallow depth to the current limit of drilling at around 270m depth and appears be suited to open pit mining.

Pit optimisations have been carried out by South African mining consultants Sound Mining utilising Mine Design Criteria (MDC) compiled in agreement with MOD Resources, using NPV Scheduler© software and based on Life of Mine (LOM) copper price of US$2.53/lb.

The pit design has resulted in a staged mine development at an annualised ore mining rate of 2Mtpa with the first stage targeting shallow high grade ore with the objective to pay back capital within 2-3 years. Total mine life is approximately 10 years with 9.25 years of ore production. Approximately 88% of the total production target is in the Indicated Resource category. Importantly, over 95% of the production target is in the Indicated Resource category for the first three years of production.

Block Models are generated based on a Small Mining Unit (SMU) block size of 7.5mx 7.5m x 2.5m, which takes account of ore grade dilution. In addition, a 95% ore recovery and dilution of 10% are included in the model giving total estimated ore dilution of 17% and yielding fully diluted LOM ore grade of 1.16% Cu and LOM strip ratio of 6.13. Considering the widths and consistency of ore zones within the deposit, a review of mining methods and cut-off grades will be undertaken during the PFS with the objective to minimise dilution.

Approximately 9.5Mt of near surface waste rock is planned be removed as a pre-strip before commencement of production.

Based on a review of available geotechnical information, Sound Mining has estimated the preliminary overall slope angles for pit optimisation. For mine optimisation and design purposes, dewatering is assumed to be in the order of 5 to 25l/s over an average mining depth of 80m.

Open pit ore and waste mining is planned to be conducted by contractors. Ore and waste mining costs used in preliminary financial models were derived from comparison with similar operations and estimates provided by South African mining contractors.

4. Process Engineering

Perth-based engineering consultants Minnovo Pty Ltd have conducted a scoping level study including a review of processing options which has resulted in a conceptual plant design for a 2Mtpa flotation plant and associated infrastructure constructed on site at T3. The proposed plant design is relatively simple and conventional, reflecting the favourable metallurgical characteristics of T3 ores.

The process plant and associated service facilities will process run-of-mine (ROM) ore at a rate of 2Mtpa, to produce a copper concentrate and tailings. The process consists of crushing and grinding of the ore followed by sequential rougher and cleaner flotation. Concentrate will be thickened, filtered and stockpiled prior to being loaded into containers for storage and subsequent transport to third-party smelters. The flotation tailings will be dewatered by thickening and disposed to the Tailings Storage Facility. The plant has potential to be up-scaled to around 3Mtpa in the event production is increased at T3 or additional ore is sourced from satellite deposits in the region.

Copper mineral proportions across the deposit are assumed to be 3:1:1 for Chalcopyrite:Bornite:Chalcocite respectively. On this basis and using metallurgical testwork data, recoveries are assumed to be 95.6% Cu and 75.3% Ag; yielding concentrates grading approximately 36.5% Cu and 370ppmAg.

Estimated metal in concentrate production for the first three years of the project is 22ktpa Cu and 660kozpa Ag, with LOM average 21.8ktpa Cu and 665kozpa Ag.

Preliminary testwork indicates potential to produce high grade copper/silver concentrates which are proposed to be stored on site and transported in half height containers. Containerisation of concentrates provides several potential logistical, commercial and environmental benefits which will be further evaluated during the PFS.

Utilities allow for onsite diesel power generation with a total installed capacity of 12.5MW. MOD has been advised by the Botswana Power Corporation (BPC), the government owner entity responsible for grid power generation and transmission in Botswana, that grid power will be available at the A3 highway, 12km from site, by mid-2019. Allowance has been made to connect the site to grid power in 2020 with the commensurate reduction in unit power costs.

Rather than accommodate mine personnel on-site, the study assumes personnel will be based in the substantial town of Ghanzi located circa 85km west of T3 along the Ghanzi highway.

5. Environmental and Social Permitting and Baseline Requirements

Scoping level studies were carried out to evaluate the permitting requirements to bring the T3 Project into production in Botswana. These studies also included identifying any additional activities required to comply with the Equator Principles and the International Finance Corporation (IFC) Performance Standards.

As the T3 Copper Project is a greenfields project and the first large scale mining project in the Ghanzi district in Botswana, the Environmental and Social Impact Assessment (ESIA) and permitting requirements have been developed during the Scoping Study as a priority.

A study was carried out by Karunya Consulting, an independent environmental and social consultant based in Botswana, to establish the Botswana (and international) environmental and social permitting and baseline requirements and the high level environmental and social risks for the T3 Project.

Preliminary water studies have identified multiple areas as potential supply options for process water. Key risks relating to water supply are associated with the nature of the aquifers and the sustainable drawdown capacity. Current work has highlighted a water resource (Ghanzi aquifer) in the area surrounding the T3 project as a potential supply that requires early fieldwork to establish sustainable supply capacity. Hydrological tests in the T3 area are planned starting early 2017.

6. Competent Persons

The Mineral Resource estimation and classification of the T3 Copper/Silver Project was conducted and approved by Mr A.I. Pretorius, MSc. Pri.Sci.Nat. Mr Pretorius is an independent consultant to MOD Resources Ltd and a member of the South African Council for Scientific Professionals (SACNASP Membership Number 400060/91).

The T3 Prospect geological data and exploration results have been reviewed and approved by Jacques Janse van Rensburg, BSc (Hons), Technical Adviser and Competent Person for MOD Resources Ltd.

The Competent Person responsible for the interpretation of the metallurgical test work results from the T3 Copper/Silver Project is Mr Daryl Evans, who is a full-time employee of Independent Metallurgical Operations and a fellow of AusIMM.

The competent persons have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code).

7. Project Location

The T3 Copper-Silver Deposit is located on the Kalahari Copper Belt in northern Botswana and is part of the MOD/MTR joint venture Botswana Copper/Silver Project. T3 is located approximately 70km NE of the project’s Tshimologo (T4) Prospect and is located parallel to the same structural trend known as the Mahumo Structural Corridor, that hosts MOD’s Mahumo Project (circa 20km NE of T3) and Cupric Capitals’ Banana Zone Deposit (60km NE) and Zone 5 Project (120km NE).


Material assumptions used in the estimation of the production target and associated financial information are set out in Table 3 below.

Table 3: Material Assumptions

Criteria   Commentary

Mineral Resource Estimate
underpinning the
production target

The Mineral Resource estimate declared on 26 September 2016 underpins the production target. This estimate was prepared by a Competent Person in accordance with the JORC Code 2012.


Approximately 88% of the total production target is in the Indicated Resource category. Importantly, over 95% of the production target is in the Indicated Resource category for the first three years of production. The remainder of the production target is in the Inferred Resource category.


The production target is 18.13Mt of ore @ 1.16% Cu and 13.9g/t Ag for a total of 201Kt Cu and 6.1Moz Ag.

Site Visits Mr Janse van Rensburg, the Competent Person for Geological Data and Exploration Results as part of this study was on site full time.


No site visit was undertaken by either Mr A. I. Pretorius (Resource Estimate) or Mr Evans (Metallurgical Testwork).

Study status The production target and financial information in this release are based on a scoping study. The scoping study referred to in this announcement is based on low-level technical and economic assessments, and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the scoping study will be realised.
Capital costs

The pre-production capital cost estimated as part of the scoping study is shown below:











Tailings storage




Owner’s costs


Mining pre-strip





The accuracy of the capital cost estimates is based on a number of studies to support the range of scenarios considered. Significant bodies of work were completed to underpin the cost estimate, by either confirmed costs obtained through specific quotations or historical data for recent comparable projects. The overall estimate accuracy is determined to be ± 35%.


The final scope of the project requires further definition and additional study to ensure the value of the project is optimised and that a prefeasibility study estimate can be stated.


Tailings capex assumed at US$0.5m establishment and US$0.50/t storage capacity.


Water supply capex assumes site water will be available close to T3.

Cut-off parameters A cut-off of 0.5% Cu was applied to the JORC resource.
Mining factors or assumptions

The production target has been developed assuming conventional open pit mining methods using 8.5-18.3m3 excavators, 80-100t rigid haul trucks and 12m3 Front End Loaders.


10m benches have been allowed for in the Waste zone and 5m benches in the mineralised zone in order to minimise ore loss and dilution.


A minimum mining width of 70m has been allowed for in the study.


A Small Mining Unit block size of 7.5m x 7.5m x 2m has been used which takes account of ore grade dilution. Ore recovery of 95% and dilution of 10% yield fully diluted LOM ore grade of 1.16% Cu at a total grade dilution of 17%.


Based on a review of the limited available geotechnical information, preliminary overall slope angles ranging from 33-36o (Weathered) to 37-560 (Fresh).


Allowance has been made for in-pit production grade control when operating in mineralised areas of the pit.


Allowance has been made for appropriate workshops, laydown areas, washdown bays and fuel supply to support mining operations.


The percentage of Indicated and Inferred Resource that relate the production schedule is given in the table below;

Cumulative Years


Indicated %

Inferred %

Yr 1



Yr 1-2



Yr 1-3



Yr 1-5








Metallurgical factors or assumptions

A conventional crush, grind and selective flotation process has been proposed to produce a saleable copper concentrate with silver grades. Metallurgical testwork supports this process which is well proven and in operation across the mining industry.


The metallurgical recoveries assumed are shown below and were based on a theoretical blend of the major copper minerals present which in turn were tested as separate composites.


Recovery %







Metallurgical characterisation testwork results established by IMO supplied as raw data to Minnovo. The testwork composites were based on the known dominant mineralisation zones of deposit at the time of the testwork. No deleterious elements were present in sufficient quantities to require allowances in downstream smelting and refining.

Environmental Preliminary studies carried out as part of the Scoping study established the Botswana (and international) environmental and social permitting and baseline requirements as well as the high level environmental and social risks for the T3 Project. The studies included a focus on early long term water supply options for the project.
Infrastructure There is little existing infrastructure at T3. The infrastructure required to support the 2Mtpa processing plant includes; on-site power generation with installed capacity of 12.5MW with conversion to grid power in 2020 consistent with Botswana Power Corporation advice; raw water supply from a bore field close to T3; initial tailings storage facility with a capacity of 6MT; buildings including offices, work-shops, warehouse, laboratory, crib room and ablutions; communications and; mobile equipment excluding mining fleet.
Costs All costs in the estimation of the production target and the associated financial information were estimated to a scoping study level of accuracy.


Mining schedule and costs sourced from Sound Mining based on optimised pit shell using a US$2.50/lb copper price, 19.87/oz silver price and other MDC inputs. These mine operating costs were developed from other similar projects and adjusted for location. In addition, the mining study team has verified the Scoping Study mining contractor cost assumptions with an independent mining contractor operating throughout Southern Africa.


Process Plant capital and operating costs supplied by Minnovo and were based on a combination of first principle build up and current pricing and labour costs developed for T3 specifically or from recent similar projects in the region.

Water supply opex assumed at US$0.25/m3 all in cost.


Fuel price used for diesel-fired gensets based on wholesale prices received from regional suppliers. Average price quote of US$0.64/L.


Additional infrastructure and operating costs (G&A etc.) supplied by IMO.


Treatment and Refining charges are based on available information for treatment and refining copper concentrates at a regional smelter.


Government royalties of 3% and 5% for Copper and Silver respectively have been applied. It has been assumed a 2-year copper royalty holiday will be granted by Botswanan government. No private royalties have been allowed for.

Revenue factors




US $2.53 / lb


US $19.72 / oz

TC/RC charges

US $0.4 / lb Cu

Ag credit

US $0.25 / lb Cu

Exchange rates

AU$1 / US$0.75
US$1 / BWP10.2
US$1 / ZAR13.4


Ramp up production schedule supplied by Minnovo allows for degraded availability, throughput and recovery over the first 3 quarters of processing.


Concentrate transport charges of US$0.1/tkm have been applied to concentrate haulage. All other transport charges were grossed up as part of the supply unit costs.


Mid-2019 start date is targeted by MOD in comparison with current conservative permitting and construction timelines indicating a Q1 2020 start date. This is subject to revision and optimisation during PFS in 2017.


Consensus commodity prices as per "PCF Resources Thermometer October 2016".


Spot Commodity Prices as per LME spot price 23 November 2016.


Cashflow model is a project level cashflow model and excludes the following;


- Pre-cursor and project sunk costs prior to project sanction

- Corporate and joint venture overheads

- Finance and Taxation costs associated with the project

- Co-payment arrangement for power infrastructure other than allowance for 12km HV power line from Ghanzi highway

- Escalation of costs across time

- Escalation of commodity prices across time

- Board reserve allowance

- Equity raising and subsequent costs

Market Assessment The copper market is a mature market with the key drivers for copper concentrate demand including national inventory restocking policies, industrial growth, availability of scrap and general consumer demand, particularly in developing countries. Based on the industry research outlined in “Revenue Factors” MOD has formed the opinion that future copper demand will outweigh supply supporting prices during the proposed production period for the T3 project.
Economic A preliminary project level cashflow model has been developed for the Scoping Study. The Preliminary Base Case assumes consensus copper pricing (US$2.53/lb) and the Preliminary Upside Case assumes an elevated copper price (US$3.00/lb).


The model assumes a 2Mtpa open pit mining operation commencing mid 2019 with on-site processing resulting in a mine life of approximately 10 years (LOM) with 9.25 years of production. Estimated production for first three years is 22ktpa Cu and 660kozpa Ag, with LOM average 21.8ktpa Cu and 665kozpa Ag.


Total project capital is estimated at approximately US$135M.

A discount rate of 10% has been used in the model.

Social An exploration access agreement is in place relating to the freehold farm surrounding.
Other There are no known naturally occurring material risks to the T3 project.

There are no material legal or marketing agreements in place.

The tenements are in good stead and no expectation that this will change.

Preliminary discussions with the Botswana government indicate necessary approvals can be obtained once due process is followed.


Resources were classified in accordance with the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition).

The classification of Mineral Resources was completed based on the geological complexity, estimation performance, number of drill samples, drill hole spacing and sample distribution. The Competent Person is satisfied that the result appropriately reflects his view of the deposit.

Continuous zones meeting the following criteria were used to define the resource class:


Indicated Resource

Drill spacing up to approximately 100m by 100m

Estimation performance: Weighted average between 1.0 and 1.4


Inferred Resource

Drill spacing wider than 100 m by 100 m

Estimation performance: Weighted average above 1.4

blocks estimated in the third pass

Limited number of drill holes.

Audits or reviews The mining and processing and infrastructure components of the scoping study were independently reviewed by MOD specialist consultants. No material issues were identified by the reviewers.

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 meets the criteria of a qualified person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly has visited the T3 site and reviewed MOD’s drilling and sampling protocols and procedures. 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:

Michael McNeilly
(Chief Executive

    Tel: +44 (0)20 7099 0738

Keith Springall
(Finance Director &
Company Secretary)

Tel: +44 (0)20 7099 0738

Sean Wyndham-Quin
Neil Baldwin
Nick Emerson
Andy Thacker


Spark Advisory Partners Limited
(Nominated Adviser)
SI Capital
(Sole Broker)


Tel: +44 (0) 2033 683 555
Tel: +44 (0) 1483 413 500


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 expanding interests over 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 ISDX or AIM partner with whom the Company is engaged.

Metal Tiger also has an Asset Trading Division that holds various financial instruments for trading purposes including equities, warrants and royalty income. The aim of the division is to generate profits to reinvest into the Company’s project based activities.

Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.

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