Metal Tiger plc (LON:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, has today provided an update regarding the Company’s Joint Venture project with partner MOD Resources Limited (ASX:MOD) in the Kalahari Copper Belt in Botswana (70% MOD Resources/30% Metal Tiger).
Highlights:
· T3 Mine Feasibility Study progressing well within budget, due for completion March 2019.
· Metallurgical test work results identify capital and operational cost savings versus Pre-Feasibility Study.
· Botswana Power Corporation has commenced regional electricity grid infrastructure building including a power line which is due to pass within 12km of planned T3 Mine site.
· First stage of T3 accommodation village complete with further expansion planned.
· Scope and Terms of Reference for T3 Environmental Social Impact Assessment approved by Botswana Department of Environment Affairs, report due Q4 2018.
· Completion of the Feasibility Study and approval of the Environmental Social Impact Assessment are required ahead of applying for the T3 mining license, which is anticipated in H1 2019.
Michael McNeilly Chief Executive Officer of Metal Tiger plc commented:
“We are delighted to report that the T3 Mine Feasibility Study remains on track to complete in March 2019, with the engineering and design works both on schedule and within budget.
T3 continues to surprise to the upside and, at each juncture, capitalises our belief that this is a highly economic and significant copper project. The findings of the Feasibility level metallurgical test work are particularly encouraging with the coarser grind metal recoveries supporting a reduction in anticipated capital, operational and power costs versus the Pre-Feasibility Study stage model.”
Feasibility Study (FS) Work Stream Detail
Metallurgical Test work
· FS level metallurgical test work has confirmed reduction in expected capital and operating costs through lower comminution power requirements and neutral pH floatation recoveries:
o Rougher floatation recoveries exceed 97% for Cu and 95% for Ag.
o Target grind size increased to P80 = 212µm (P80 = 106µm target used in Pre-Feasibility Study)
o Rougher floatation at neutral pH without lime addition allows for operating cost savings.
o Coarser grind beneficial for tailings dewatering.
· Cleaner optimisation test work to commence soon with plant concentrate grades expected to average 30-35% Cu over the life of mine.
Process Engineering
· Comminution study completed by Orway Mineral Consultants confirms that a standard crush/SAG/Ball circuit is appropriate for all lithological domains within the proposed T3 pit.
· Preliminary design work on the primary crushing station and grinding circuit has commenced. Process plant design throughput is 3Mtpa with expansion capacity to 3.5Mtpa for modest incremental capital. Plant layout will consider future expansion options beyond 3.5Mtpa. Work being undertaken by process engineering consultants Sedgman.
Mining Engineering
· T3 Mine pit design and pit optimisation study underway with mine scheduling study expected to follow. Work being undertaken by mining consultants SRK Consulting.
· Additional geotechnical drilling is underway to provide detailed information for the final pit design.
Mine Dewatering & Process Water
· Pit dewatering study drilling programme and pump testing have been completed in the area around the planned pit.
· Groundwater modelling will be used to estimate yields from pit dewatering with production water bores planned to be used for ore processing and related infrastructure requirements.
Mine Infrastructure
· Botswana Power Corporation has commenced installation of infrastructure that will be used as part of the grid power line adjacent to the A3 Highway between Maun and Ghanzi, 12km from the T3 Project.
· T3 Project area 25km2 land acquisition agreement with farm finalised during Q2 2018. Acquired land is sufficient for, and will allow expansion capacity for, the open pit, process plant and associated mine infrastructure.
· Long term lease agreement executed with a farmer for a 100m wide strip of farmland to be used as an access road between the A3 highway and the T3 Project. This will be used to service the mine with enough space to accommodate the planned grid power spur line.
T3 Accommodation Village
· The first stage of a 40-person accommodation village, located on the A3 Highway near Ghanzi, has been completed, subject to final signoff.
· Project Brief has been submitted to the Botswana Department of Environment Affairs (DEA) to increase the size of the accommodation village from the current size up to 400 personnel and allow for an additional 300 personnel during construction.
Environmental and Social Impact Assessment (ESIA)
· DEA approved the Environmental Scope and Terms of Reference for the ESIA in August 2018.
· Approval confirms the work programme being undertaking will satisfy the DEA expectations if it is carried out and reported to a satisfactory standard and meets regulatory requirements.
· Preliminary ESIA work programme commenced in December 2017 involving stakeholder meetings. ESIA includes a range of specialist work, an environmental and social management plan and regular stakeholder engagement, all of which is well advanced.
· ESIA Report on track for submission to the DEA during Q4 2018. This work compilation is being prepared by consultants Loci Environmental.
Current FS Resource
· Feasibility Study is based upon the revised Mineral Resource Estimate 60Mt @ 0.98% Cu and 14g/t Ag at a cut-off of 0.4% Cu, including approximately 36Mt @ 1.14% Cu and 16g/t Ag in the Indicated Resource category (announced 16 July 2018). Resource prepared by independent consultants CSA Global.
Funding for T3 Project
· MOD report that they are working with debt finance advisers having received significant interest from several global financial institutions in providing finance to develop the T3 Project.
