Metal Tiger PLC (LON:MTR) has unveiled updates for two of its portfolio firms, Southern Gold Limited and Sandfire Resources (ASX:SFR), highlighting positive results and progress across both of the firm’s projects.
For Southern Gold, in which it owns a 17.1% stake, Metal Tiger said 720.46 metres (m) of diamond drilling has been completed at the investee’s Aphae project, while drilling of a fourth hole has now commenced at the Deokon project.
Meanwhile, 1,230m of drilling has been completed at Southern Gold’s Beopseongpo project, while regulatory approvals to drill at depth at the Weolyu project are “well advanced” with drill programme planning and logistics completed for the first quarter of 2021.
A new target area close to the Eunsan gold mine on the Jangwhal project has also now been secured with tenement applications.
“Initial results from Southern Gold’s drilling at the Aphae and Deokon projects demonstrate positive results. We look forward to completion of drilling and the results of the assays which will likely give further understanding to the value of the Deokon and Aphae Projects”, Metal Tiger chief executive Michael McNeilly said in a statement.
“Further to this, we are pleased to also see regulatory approvals at the Weolyu Project advancing, which, if accepted, will see Southern Gold’s planned drilling programme beginning in [the first quarter of 2021]”, he added.
Progress at Sandfire
In a separate announcement, Metal Tiger said Sandfire, in which it owns a 3.5% stake and a 2% net smelter royalty, has embarked on a substantial exploration programme with the initial focus on the T3 Expansion project, which includes the drilling of high-priority targets identified within a 25-kilometre radius of the site.
Drilling accelerated through February and March however all activities were suspended in late March due to the lockdown imposed by the Botswana Government in response to the coronavirus pandemic.
Metal Tiger said previous drilling from the A4 resource area has delivered “significant high-grade intersections of copper-silver mineralisation”, which it said “demonstrate the continuity of high-grade vein-hosted mineralisation along strike within the A4 resource area and have increased the known strike length of the mineralisation to 800m with the deposit remaining open both to the north-east and south-west”.
Drilling at A4 resumed in early June with the aim of defining a maiden mineral resource by the end of September, while Sandfire also reported that re-interpretation of AEM data over the A4 Dome suggests that the area of current drilling appears to have tested only part of the host structure which may continue north-east.
“We are very pleased to see Sandfire’s recent progress with respect to its aggressive exploration programme in the Kalahari Copper Belt where Metal Tiger has a direct royalty interest”, McNeilly said.
“We are delighted to see that we can expect the delivery of a maiden mineral resource at A4 by the end of September, a very important milestone that we believe will substantially increase the value of our Royalty. We are further encouraged that Sandfire is targeting the A1 area which is in an area also covered by our Royalty”, he added.
Metal Tiger shares were 5.2% higher at 22.6p in late-morning trading on Thursday.