MTR Metal Tiger Blog

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MTR Metal Tiger

Current SP 2.375p


Shares in Issue: 1,349,956,065

Market Cap: £31.7m 

No debt

September 2018 Cash Raise £6.2m & Liquid Investments (only including current 6% MOD Resources) est. at 17/09/218 of £5m

MOD Resources Investment increasing to 24.8% of enlarged MOD:ASX with a current value of £17m (17th September 2018) 

Sprott Global invested over £4m at 3p in April 2017 and again in August-September 2018 taking their holding to 15.40%


Near term share price catalysts

Share price catalyst complete New JV Deal buying 50% of Kalahari Metals (KML) announced June 2018
Share price catalyst complete AEM survey has identified 7 (Seven) Domes Structures within T3 Dome complex
Share price catalyst complete Huge MOD +44% contained Copper resource upgrade at T3 to 60mt @ 1% Copper on 2nd July 2018
Share price catalyst complete Chairman purchased another 3m shares for £90k at 3.0p, Terry Grammer also bought more shares - 20/07/2018
Share price catalyst complete Kemco IPO Masterplan approved by Thai govt - 31/07/2018
Share price catalyst complete MOD A4 Dome assays - 52m at 1.5% inc 15.5m at 2.9% with up to 15.4% in veins, NPF contact at depth - 06/08/2018
Share price catalyst complete MOD A4 Dome - Four rigs drilling 9x 200m spaced holes, more rigs being deployed, more assays to come - 06/08/2018
Share price catalyst complete MOD Initial A1 Dome drill shows visible Bornite - 06/08/2018
Share price catalyst complete MOD AEM tech proven to accurately target heavy Copper mineralisation across thousands of square miles of JV land - 06/08/2018
Share price catalyst complete MTR Directors buy more shares at 2.8p. Chairman has now bought c£150k of shares at 2.9p+ in the past few weeks - 07/08/2018
Share price catalyst complete MOD PFS Base Case throughput raised 20% from 2.5 Mtpa to 3.0 Mtpa - 09/08/2018
Share price catalyst complete Oversubscribed £6.2m 2.8p placing completed - Sprott invest another £2.6m - 31/08/2018
Share price catalyst complete A4 Dome NPF contact yields >2% Copper at 500-600m, hole #8 shows strong mineralisation - assays awaited - 04/09/2018
Share price catalyst complete T20 Dome Complex (2.5x the size of T3 Dome Complex) EMP approved – drilling in October) - 11/09/2018
Share price catalyst complete Sprott Global up their stake in MTR to 12.7% via on-market buying - 18/09/2018
Share price catalyst complete A4 Dome NPF contact yields further >2% Copper at 500-600m in hole #8 plus 43m at 1% - 04/10/2018
Share price catalyst complete Sprott Global up their stake in MTR to 13.92% via on-market buying - 09/10/2018
Share price catalyst complete T20 AEM complete - new drill campaign underway - 26/10/2018
Share price catalyst complete MOD licenses extended to 2020 allowing the MTR T3 JV<>MOD equity swap to complete - 26/10/2018
Share price catalyst complete KML JV AEM identifies multiple T3-style dome structures - 31/10/2018
Share price catalyst complete Official MTR/MOD JV restructure completed (25% of MOD to MTR)
Share price catalyst complete MOD Resources main LSE exchange listing
Share price catalyst complete Sprott Global increase their MTR holding to 15.4%
Share price catalyst complete First two holes in T23/T20 Dome intersect significant shallow Copper - assays awaited
MOD T3 pit DFS in Q1 2019 - on schedule
Drilling/assay results from A1 Dome
Further drilling/assay results from A4 Dome
THOR Mining investment/potential JV developments

In a nutshell, why is it a great time for me to consider investing in Metal Tiger?

Following the JV announcement on 18th July 2018, Metal Tiger own 30% of c. 7,978km2 of land in a JV with MOD resources in the Kalahari Copper Belt in Botswana. MOD also own a further 5,000km2 by themselves. Metal Tiger will also own a 24.8% shareholding in MOD resources on completion of the 18th July JV deal, giving them extra exposure to the project. The MTR/MOD 7,978km2 JV area is considered to be by far, the best acreage. 

In June 2018, MTR also announced the option to take a 50% JV with Kalahari Metals (KML) who operate 4,000km2 of licences ‘next door’ to Cupric Canyon's c4,500 sq km of land where they already hold c500mt of Copper resource at grades up to 2%. MTR have been quick to announce the deployment of the successful AEM tech in July 2018. This tech is proving successful on the MOD/MTR JV area in being able to pinpoint Copper deposits using highly accurate New Resolution Geophysics.

Back on the MTR/MOD JV area, in 2016, the MOD/MTR JV drilled their first attempt and made a significant discovery (named T3) in an area that is less than 0.1% of their total acreage! This has been developed up to PFS stage and the Expansion Case (confirmed by the recent large resource upgrade) has an NPV of $400m at $3 Copper, that NPV value doubles to c$800m at $4 Copper. 

The really interesting part is that it’s taken 18 months to get approvals to drill a further 700km2 of land around the discovery (called the T3 Dome Complex) and, during that time, both MOD and MTR have attracted major investors – World renowned resource fund Sprott Global hold 16.41% of MTR, having invested in 2017 at 3.0p per share and in 2018 at 2.8p per share in August 2018 then added yet further by buying on-market in September 2018 to take them to a big 16.41% holding in MTR. 

They’ve hired top drawer experienced New Resolution Geophysics people to interpret the wider 700km2 land using an airborne survey and have identified seven domes that look almost identical to the T3 Discovery around the wider T3 Dome Complex. The technology has produced detailed ‘facial recognition type’ pictures going to 500m in depth on each of the seven domes. 

Mid May 2018, they commenced drilling two of the best domes and a month later commenced on the third. Nine rigs are currently drilling away. Any success here not only blows the current valuation out of the water but also ‘proves up’ their new technology that was deployed to find these deposits which bodes well for the other 11,600km2 acreage, part of which, applications are in progress for further approvals/drilling in August and they also plan more airborne surveys using this technology.  

On 10th July 2018, hole A4-003 at A4 Dome has hit ‘Significant Visible Copper Mineralisation’ over a 67m downhole interval. The assays were announced on 6th August and were described as ‘outstanding’ with 52m @ 1.5% Copper including 15.5m @ 2.9% and narrow veins of Copper throughout the 52m ranging from 7.8% Cu up to 15.4% Cu. This was fantastic news and the CEO advised the onsite geologists are particularly excited as the mineralisation was implied to be of a ‘Stockwork’ nature. In the same announcement, they disclosed that drill hole No.2 at the high priority A1 Dome has also hit mineralisation and is currently (as at 6th August) drilling through and still in mineralisation. This is excellent news because it proves the high tech AEM is working as a pathfinder for new discoveries, given they are working with no previous drilling or soil anomalies to guide them. Further significant intersections were announced on 4th September with Assays eagerly awaited.

Interesting to note that all seven domes can feed the already significant $400m NPV pit, so the financial metrics will ramp up dramatically on any further discoveries. Meanwhile, permits are progressing on the regional and huge T20 Dome Complex which contains further ‘significant’ copper deposits. Approvals are now complete with drilling expected in October

Although Metal Tiger is well capitalised (underpinned by an estimated £5m of cash/equities at September), the A4 Dome discovery changed everything and they now plan to ramp up exploration on the MOD & KML licences. MTR considered selling down some equities to fund this but felt the better option was to raise £6.2m via a fundraise at 2.8p. Once again. Sprott Global and Affiliates supported MTR in this fundraise. The current mcap is £31.7m, and with the massive exploration upside, it could be multiples of this. Majors are plugging in all the drill results into their databanks because normally, for this size acreage, you’d have multiple operators sharing this size of land. Drilling results will be regular and continue all year so investors are positioning themselves now. We should see rigs onsite increasing once approvals on T20 are received so newsflow will ramp up again to unprecedented levels

On 18th July 2018, MTR & MOD announced a restructure of the JV 70/30 deal which looks to completely transform Metal Tigers Investment (in a superb and very transparent way!) I will cover this right below here with the heading **Newsflash 18/07/18** as it requires a separate section in order to fully understand the huge benefits to MTR. 

Why Copper?
Spend some time reading this terrific Copper investment note from Arden Partners - it highlights MOD as one of their top Copper picks based on low costs, high grades, very high Copper concentrate purity and large exploration upside.

If you like the sound of this then read on ...



STOP PRESS: 31st August - New MOD presentation! 


**NEWSFLASH July 18th 2018 – Significant JV Restructure News** 

Long term MTR holders will be aware that the 70/30 structure for MOD/MTR was always going to present problems when it comes to financing the T3 project to production, and it would be necessary to somehow change that ownership to allow MOD a project ownership of over 90% in order to seek project finance. I have left the section “MOD Resources JV – Strategic Options” absolutely untouched (covered further down) as this helps explain the rationale of why something needed to happen. 

As you will see from my example of how it could be done, the actual deal is miles better for MTR and so on to the detail. I will try to simplify this as much as I can. 

As we know, the T3 project is situated within the larger T3 Dome Complex (containing those seven ‘Clone Dome Targets’ currently being drilled).

Firstly, this deal swaps just the T3 Pit and enough area around it to carve out for road access etc, it does not include any of the drilling targets outside of the T3 Pit. The remaining land outside of the T3 area is 7,978km2 and will remain under the same ownership split, MOD/MTR 70/30 as per the previous arrangement. 

Metal Tiger have swapped their 30% interest in T3 Pit for shares in MOD resources. MOD are rightly concerned about gifting MTR with a Major holding so have put clauses in place to ensure the shareholding is phased and managed. 

The effective monetary benefit to MTR is A$27.7m which is split as follows: 

MOD will issue (on completion of the deal) 17.2m new MOD shares. They will then issue a further 40.6m shares in the form of ‘zero price option shares’ which can be converted to normal MOD shares. 

The key to understand is that MOD want MTR to remain a 12.5% holder throughout the conversion process so MTR can only convert these option shares in keeping to a maximum 12.5% holding. MTR also have to hold any new shares for a period of 12 months before being allowed to sell them. 

MTR have 3 years to do this, so the value of the ‘option shares’ will increase in line with MOD share price whilst they gradually convert them. Effectively these option shares are exactly the same as normal share but can only be converted in phases, and sold 12 months after conversion. 

Here is a breakdown of what Metal Tigers MOD holding will look like post completion: 

Exisitng MOD 6% shareholding (MTR already owned pre-JV Deal: 13.9m Shares

New Shares Issued by MOD: 17.2m Shares

Option Shares (for conversion over a 3 year period): 40.6m Shares

Total Share holding (Actual & Options): 71.7m Shares  

This will be a 24.8% shareholding of the enlarged MOD shares in issue of 289m 

IMPORTANT: In the event of a takeover offer for MOD, all options are automatically convert into MOD shares. 

Metal Tiger has invested a total of c. £3.8m so far into this project, so this sale and swap is effectively generating a return of 4.5x! 

Other terms: 

·         As well as MTR keeping the JV split 70/30 on all JV land outside of the T3 pit, they are also entitled maintain its Net Smelter Royalty (NSR) of 2% post completion (capped at US$2m) 

·         MTR will also have the right to nominate a MOD board representative (so long as they continue to own over 10% of MOD share capital 

·         Metal Tiger will no longer be required to contribute financially to the T3 pit as it moves towards production 

·         Metal Tiger will contribute to exploration costs as normal for the JV area outside of the T3 pit 


So what else have MTR given up for this very generous package? 

The main sweetener to MOD is that MOD have the option to buy any of the remaining JV assets, completed to a scoping study within 3 years of completion of this deal (subject to fair valuations of average broker valuations) 

They also have the option to acquire MTR’s remaining 30% interest in the JV area 3 years AFTER this transaction, again in accordance with fair valuations 

This is important because it’s designed to allow the MTR/MOD partnership to protect themselves against a low-ball hostile bid both my giving MTR extra voting rights on up to 12.5% of MOD at a time and also allowing MOD first rights on acquiring MTR’s 30% share of the remaining JV area 

In Summary 

This is an excellent deal for MTR as it will have an effective ownership of 24.8% of MOD resources AND keeping its 30% exposure to the exploration acreage of the JV land. The bottom line effect is an increased exposure to the Botswana project. 


MTR CEO Michael McNeilly gave a great interview explaining the huge upside from this JV deal which can be found here:


Here's a new broker note from Argonaut following the JV restructure: 

19/07/2018 Argonaut Morning Note

We see this transaction as a positive for MOD as it gains 100% of T3, increasing the Company’s control in the project and raising takeover appeal.



The Company

Metal Tiger invests in significantly undervalued and/or highly prospective opportunities in the mineral exploration and development sector timed to coincide with a cyclical recovery in the exploration and mining markets.

There are two main elements of the business: 

  • Asset Trading Division portfolio of Investments funds and equity stakes in natural resources companies (excluding the MOD Resources holding). The purpose of this division is to generate cash in order to mitigate the need for dilution through share placings for the funding of the main projects. The gains achieved from the Asset Trading division are re-invested in the Company, its operations and its Metal Projects Division. 2017 saw some significant gains with profits of over £4m banked

  • The Direct Metal Projects division is direct investment by the Company in low cost, high-value resource projects (see below)

The Core projects within the Metal Projects Division are:  

  • MOD JV Botswana Copper/Silver (MTR Interest – 30%). Through a joint venture with MOD Resources Ltd (ASX: MOD), Metal Tiger has a 30% stake in a highly prospective portfolio of 17 exploration licenses within the Kalahari Copper Belt of northern Botswana. MOD who own the other 70% of the project, have a current MCAP (17/09/18) of £55m on the ASX exchange

  • KML JV Botswana Copper/Silver (MTR Interest – 50%). Through a joint venture with Kalahari Metals Ltd, Metal Tiger has the option to buy up to 50% of 4,000km2 licenses adjacent to the very prospective Cupric Canyon license. MTR/KML have big exploration plans for late 2018/early 2019

  • Thailand Silver-Lead-Zinc (MTR Interest – 77.9%). The plan with project is to spin off and IPO it into a new company to be called KEMCO Mining PLC (“KEMCO”), which will be the listing vehicle for the Company’s Thai JV. This will trade on AIM and unlock the embedded value of the project on to the MTR balance sheet – worth around £8m to MTR. The IPO is currently postponed until further negotiations are completed with the Thai authorities later in 2018

  • Logrosan Minerals joint venture in Extremadura, Spain. The Logrosan Minerals JV is targeting Gold and Antinomy at the Maria Project and Tungsten and Gold at the Logrosan Project. Early stage project MTR paid £425K


Key people

Charles Hall (non-exec Chairman - holds 3.13% of MTR)

  • Charles is an experienced International Banker with over 30 years with HSBC in a variety of Finance and Insurance roles. His last position was as CEO & MD HSBC Private Bank (Luxembourg) S.A. He has had significant overseas senior management experience as well as that of running complex businesses. His prime focus has been on strategy and corporate restructuring with the emphasis on re focussing businesses on their core revenue streams. Charles holds a BA (Hons) from the University of Sussex, is an Associate of the Hong Kong Institute of Bankers and is a Fellow of the Royal Geographical Society.

Michael McNeilly (CEO)

  • Michael is an experienced corporate financier having advised several private, Main Market listed, AIM quoted and ISDX listed companies on a variety of corporate transactions during his tenure at Arden Partners (AIM:ARDN) and Allenby Capital respectively. Metal Tiger plc (Brady plc) was one of Michael's clients whilst at Allenby Capital. Michael was appointed as a Non-Executive Director of Connemara Mining Company plc in February 2018, and was also previously a director of GGP, as well as a Corporate Executive at Coinsilium (ISDX:COIN) where he worked with early stage blockchain focused start-ups providing corporate finance and strategy advice. Prior to his career in corporate finance, he worked Simmons & Simmons and PartnerRe and started two start-ups. Michael studied Biology at Imperial College London and has BA in Economics from the American University of Paris. Michael is fluent in French. Michael brokered both the £4.5m placing with Rick Rule of Sprott at 3.0p in 2017 and the recent JV restructure deal with MOD Resources.

Terry Grammer (NED - holds 6.32% of MTR)

  • Terry is an award-winning geologist with over 40 years’ experience in mining and mineral exploration with extensive experience in Australia, Africa, Southeast Asia and New Zealand and has been involved in numerous ASX-listed companies that have achieved dramatic growth. As geologist, Terry discovered the Cosmos Nickel deposit for ASX-listed Jubilee Mines NL which went on to be an ASX Top 200 company and for which Terry was awarded the AMEC (Association of Mining & Exploration Companies) joint Prospector of the Year in 2000. As co-founder/director, Terry listed Western Areas NL (ASX:WSA) in 2000 (and served as Exploration Manager from 2000 to 2004) which became an ASX Top 200 company. Terry was Chairman of South Boulder Mines (ASX:STB) from 2008-2013 which grew to be an ASX Top 300 company. From 2010 to 2015, Terry was a director of Sirius Resources NL (ASX:SIR) and helped to guide the Company through the discovery, feasibility and development funding of the Nova nickel and copper deposits in Western Australia, that saw the company's share price dramatically rise from AUD$0.05 in July 2012 to a peak above AUD$5 per share in early 2013 and become an ASX Top 200 company.


Rick Rule (Sprott Global - MTR's biggest shareholder with 15.40% via 2.8/3.0p placings and recent on-market buying)

  • Rick Rule, CEO of Sprott US Holdings Inc., began his career in the securities business in 1974. He is a leading American retail broker specializing in mining, energy, water utilities, forest products and agriculture. His company has built a national reputation on taking advantage of global opportunities in the oil and gas, mining, alternative energy, agriculture, forestry and water industries. Sprott are considered by many to be the World's most successful resource fund and manage $8.8b.


Julian Hanna (MOD Resources MD)

  • Mr Hanna is a geologist with over 35 years' experience in a wide range of activities including project acquisitions, exploration, development, mining and corporate growth. This includes 15 years in senior management roles with a number of gold mining companies in Western Australia. Mr Hanna was the Managing Director of Western Areas NL for 12 years before stepping down from that position in January 2012. He was a co-founder of Western Areas and led the company during its transformation from a $6 million junior explorer to become Australia’s third largest nickel mining company capitalised at more than $800 million. Mr Hanna is a Non-Executive Director of Western Areas NL and Mustang Minerals Corp. Mr Hanna was appointed Non-Executive Director on 22 January 2013 and then appointed Managing Director on 19 March 2013.

Jacques Janse Van Rensburg (MOD Resources Business Development Manager)

  • Mr Janse van Rensburg has extensive experience in planning and coordinating large scale resources projects in Africa in a career spanning more than 25 years. He was the Project Manager for the Ghanzi Project for three years until December 2010, during which time Canadian based Hana Mining Ltd (now Cupric Canyon) built its significant Ghanzi copper-silver resource. Mr Janse van Rensburg has also worked as Exploration Manager for both Pangea Exploration in the Democratic Republic of Congo and Anooraq Resources (Hunter Dickinson) in South Africa. Having been involved in drilling out Cupric Canyon's c500mt Copper resource to the north east of the MOD/MTR JV land, Jacques is now leading the current major exploration campaign around the T3 Dome Complex and, later in 2018, to the south at the T20 Dome Complex.


LIM Advisors (MOD Resources capital raise sub-underwriter and substantial shareholder)

  • Based in Hong Kong with offices in Sydney and London. LIM Advisors bought c6% of MOD during/after the capital raise to fund the large exploration campaign around both the T3 Dome Complex and the T20 Dome Complex. LIM manage over $1b across their funds and are committed to providing further capital as and when required.




Focus on Botswana Project:

This is clearly where the opportunity lies for the MTR valuation so let's explore what’s happening, starting with an introduction to the project:


Joint Venture & Project History

On 10th November 2015, Metal Tiger and MOD resources agreed a new joint venture (JV) and acquired seventeen prospective licences covering some 12,599 sq km (this includes some MOD 100% owned licences) in the central and western Kalahari Copper Belt. The JV licences have since been re-registered in the name of Tshukudo Metals Botswana Ltd of which Metal Tiger owns 30% and MOD owns 70%. Metal tiger also owns 6% of MOD resources stock providing further overall exposure (this structure is due to change following the announcement of 18th July 2018 - see **Newsflash** section). 

Here is a picture of the location of the Kalahari Copper Belt and JV Licences: 


Since November 2015, MTR/MOD have been busy exploring the JV area with soil sampling, and a high-resolution Airborne Electromagnetic (AEM) geophysics survey and also some exceptionally successful drilling (T3 Copper Discovery) The picture (below) is another of the JV licence which also shows all the anomalies from soil sampling and AEM (see key):

This picture will be worth referring back to, when I discuss the current and future plans because it labels the zones (T3, T20 etc).

It’s worth noting the ‘stars’ on the North Eastern section of this slide, each of which represent good discoveries by our neighbour ‘Cupric Canyon Capital’. These are well spread and you can clearly see these are adjacent to our JV licence area and lining up perfectly to the ‘Copper belt’ of AEM and soil sample high priority targets by MTR/MOD. It's also worth noting that the MTR/MOD exploration area is some three times larger than Cupric Canyon's and whilst grades are always important, size also counts in any mining venture.

For a bit of history on Cupric Canyon, please see this article that walks you through some of the development of their resource.


In Q1 2016, the MOD/MTR JV made a discovery of ‘T3’ - T3 is the name of the copper/silver deposit where a discovery RC drill hole intersected 52m @ 2.0% Cu and 32g/t Ag from shallow depth in March 2016. Since then a full PFS has been issued (covered further below) with both a ‘base case’ and ‘expansion case’. To achieve this within two years is testament to the JV teams extensive experience and capability. The expansion case is now pretty much confirmed (exceeded?) with the July 2018 resource upgrade and the T3 project has an NPV of $400m.


Again, look at the picture above of the JV licence area and you will see that T3 is such a tiny part and it was their first drilling attempt on the whole licence.  Given its high NPV value, think about the potential of the whole JV area.

This is in a predominantly farmland area and so obtaining permission to drill these exciting prospects is time consuming and pretty much the rest of 2017 was spent in-fill drilling T3 and obtaining Environmental Approvals (EA) for exploring the regional targets such as T3 Dome and T20 Dome etc.

In May 2018, MOD/MTR have launched a massive exploration programme to drill the anomalies identified by the AEM and Soil sampling on the much awaited T3 Dome with approvals received to commence drilling the T20 Dome Complex in October 2018. As you read further through the blog you’ll realise the sheer massive upside exploration value here which many analysts believe will prove up a World Class Tier 1 Copper Asset.

Here is a cross section of the western end of T3 pit showing stacked veins (V1 to V4) and clearly shows how its developing and the resource growing with infill drilling:


Both MOD and MTR realised the scale of the opportunity, given the T3 deposit is a tiny fraction of the overall acreage they hold so they both raised significant sums of money in 2017 & 2018 and attracted big institutional money.



Brief summary of Newsflow Timeline from April 2017 to date:

In April 2017, Exploration Capital Partners, a fund operated by Sprott Global Resource Investments, a leading global natural resources investor; took part in a placing in Metal Tiger plc at 3p raising gross proceeds of £4.85m. This marked a defining moment on Metal Tiger’s development attracting this world class fund’s support as its first institutional investor at a 9% premium to the closing price on the previous trading day before issue. Sprott conducted a huge amount of due diligence (nearly 4 weeks) on MTR and its assets before closing the deal which is a huge validation of MTR and its potential. Rick Rule (President & CEO of Sprott US Holdings) makes no secret of his appetite for the project, recently saying during a Q&A in February 2018 “both Botswana and Nambia are much less thoroughly explored than Australia and Canada. So the probabilities of getting a very large tier one deposit in unexplored terrain where the genesis of the material has already been established like the Kalahari Copper Belt is an extremely attractive proposition to Sprott” Link to the Q&A is here. Details of the Sprott 2017 placing are here. 

Drilling was paused in late spring for Environmental Approval (EA) applications to grant permission for a wider exploration campaign to commence using the huge war chest of funds held my both MOD and MTR.  

Meanwhile, in late July 2017, MOD/MTR announced the results of the high resolution airborne EM (AEM) survey – 50km along the wider T3 Dome. The AEM survey detected numerous anomalies and has enabled fast track exploration for potential ‘T3 type’ vein hosted and ‘structural contact type’ copper/silver deposits below surface. 19 potential targets have been identified as a result of this data. The full announcement including pictures can be found here.


On 7th August 2017, MOD/MTR announced they had secured the Environmental approvals to resume drilling 70 diamond drill holes with 4 rigs (announcement here) and subsequently increased this campaign on 1st September 2017 to now having 8 drill rigs operating. This is mainly T3 ‘Infill’ drilling providing more resource which will feed into the resource upgrade, announced July 2018.

On 11th January, MTR was notified by the Chairman, Charles Hall that he purchased 1,000,000 shares in the open market at 2.44p, the announcement can be found here. Subsequently, he also converted his 2m warrants (here). This is a very big statement of confidence by the chairman. He later announced an additional 1,000,000 purchase of shares ‘on market’ on the 5th February, taking his 2018 purchases to 4,000,000 shares. This announcement can be found here. 

23rd January - Thor Mining Update: Newsflow continued with an increased strategic investment into Thor Mining on 23rd January see here and then on 29th January, MTR made an additional ‘on market’ investment into Thor taking them above 10% to 67.1m or 10.78% of the company. Metal Tiger are excited with Thor’s assets potential and in particular like the Tungsten as a play - the announcement can be found here. Since this date, MTR have also reported increased ‘on market purchases of Thor Mining and these announcements can be found here and here . MTR now own 12% of Thor Mining and have been open in stating they like the Tungsten play within the portfolio of THOR assets. This is covered in more detail below.

Regional Exploration - T20 Dome - Planned for October 2018

On 3rd April 2018 an application was lodged with Botswana Department of Environmental Affairs (DEA) for an Environmental Management Plan (EMP) for drilling within the circa 697km2 of the very exciting T20 Dome complex.

Within the announcement, they have identified ‘T23’, a new target located 15km west of T4. A compelling target derived from the interpretation of airborne EM data and detailed magnetic data. It consists an interpreted rotated structural anomaly within the core of a larger dome structure. T23 is likely to be the first target to be drilled when the T20 Dome EMP is approved.

A long-term holder of MTR – ChrisJParrish has compiled an excellent research note on the T20 license area which is highly recommended reading, especially when you consider this drilling programme to be the most exciting in the entire programme to date and its estimated start date is late Summer (around August 2018). His research can be found here.


Regional Exploration – T3 Dome – Commenced Mid-May 2018

On 15th May 2018, MOD/MTR commenced the Major Drilling Campaign to test a wide range of new targets at the T3 Dome Complex. Drill rigs have been mobilised at the A4 Dome, 8km west of T3 and at the A1 Dome, 20km northeast of T3. This is what all shareholders (incl Sprott) have been waiting for.

MOD’s Managing Director, Mr Julian Hanna said that state-of-the-art processing and interpretation of airborne EM data by Tshukudu’s very experienced consultants has uncovered compelling new drilling targets spread over a wide area of the T3 Dome Complex.

What is extraordinary is that the EM interpretation appears to have defined seven large ‘buried’ conductive domes, several with very similar geometries and internal structures to the T-Rex Dome which underlies T3”, Mr Hanna explained.

Drilling is initially testing domes with similarities to the T-Rex Dome. Depending on results, approximately 60 diamond core drill holes have been budgeted during the first phase of drilling along the T3 Dome Complex.

Here is an Airborne EM image across T3 Dome Complex showing interpreted buried domes to ~500m depth (yellow), and locations of five EM sections (T-Rex, A1, A4, A21 and A27 Domes):



Here is an interpreted EM section of the existing T-Rex Dome and planned T3 Pit:


And here are the EM sections of the A4, A1, A21 & A27 Dome structures:





As you can see, these are compelling targets and any success here will open up the expectation of many more discoveries across the entire 12,600km2 acreage. The full announcement can be found here.

Drilling update 12th June T3 Dome Complex

On 12th June 2018, MOD/MTR released an announcement confirming that the first hole at T3 Dome (targeting ‘A4’) hit Copper mineralisation. This is excellent news because the A4 Dome has intersected copper mineralisation, similar to T3, as predicted by the electromagnetic geophysics data modelling and interpretation. This is an excellent start to the regional drilling programme and clearly begins to prove up what look like 7 x ‘T3 Clone Domes’.

These new dome targets are within distance to feed into the T3 pit, so any new discoveries would have an exponential impact on the pit DFS economics and NPV valuation (currently c. $400m NPV on the Expansion Case) 

News flow has now stepped up and will continue throughout 2018. MTR/MOD have now ramped up drilling to 9 rigs in operation at T3 Dome targets A1 & A4 & A9.

The full announcement can be found here.

Drilling update 9th July T3 Dome Complex


MOD/MTR issued a very exciting update on 9th July 2018, confirming that the second drill hole at the A4 Dome has hit ‘Significant Visible Copper Mineralisation’ in veins currently over a 67m downhole interval. This is excellent news and the CEO of Metal Tiger commented: 

“We are delighted to report that the latest drill hole testing the core of the A4 Dome has intersected what looks to be significant copper sulphide mineralisation. The onsite geologists are particularly excited by the stockwork morphology of the mineralisation which is a style previously unseen by the JV drilling. This has further implications in that the A4 Dome appears to be an intact dome, so any vein hosted mineralisation deposited within the dome should still be there. Everyone is looking forward to receiving the assay results.” 

Clearly, good Assays here will set the temperatures soaring due to the positive implications of the AEM tech successfully being able to locate Copper deposits in this vast 12,600km2 Acreage. 

The full announcement can be found here.

Drilling/Assays update 6th August – A4 & A1 Dome, T3 Dome Complex

Following a MOD trading halt, MOD/MTR issued a very exciting update on 6th August 2018. An ‘Outstanding’ copper intersection was confirmed at the A4 Dome MO-A4-003D intersected 52m @ 1.5% Cu and 14g/t Ag from 232.2m downhole depth, with many high-grade copper assays up to 15.4% Copper. Vein mineralisation in MO-A4-003D remains completely open at depth and along strike at the 5km long A4 Dome.

 MO-A4-003D includes a high grade intersection of 15.5m @ 2.9% Cu and 42 g/t Ag from 268.6m downhole depth. MOD also described ‘Bonanza’ grade assays for narrow individual veins (≤1m) throughout the 52m intersection include 7.8%, 8.4%, 11%, 11.5%, 12.2% and 15.4% Copper. The highest silver assay is 476g/t Ag which is associated with 15.4% Copper at the base of the 52m intersection (Figures 1 and 2). This compares with MOD’s prior success when T3 was discovered in March 2016 (52m @ 2% Cu and 32g/t Ag).

MO-A4-003D also intersected an interval of vein and disseminated chalcocite and bornite mineralisation from 586.6m downhole depth, on the NPF contact. Assay results are awaited to confirm the significance of the NPF contact mineralisation intersected in MO-A4-003D.

MOD’s Managing Director, Mr Julian Hanna said, “MO-A4-003D has turned out to be an extraordinary drill hole. It has intersected two zones of mineralisation in the early stages of drilling at the A4 Dome which shows strong similarities to the dome which underlies the T3 deposit.”.

 Mr Hanna added, “When put into context with T3 and the ~7Mt of contained copper in other resources to the east of MOD’s extensive licence holdings, this one hole into the A4 Dome has again demonstrated the huge potential of this rapidly unfolding Kalahari Copper Belt.”

“What is equally as exciting is the second hole at the large A1 Dome (MO-A1-002D), 26km east of the A4 Dome, has intersected vein hosted bornite at ~192m and is currently drilling through visible mineralisation.”

“These latest results have confirmed Airborne EM as the breakthrough technology which our exploration team is using to great effect to find significant new copper in conductive domes with no previous drilling or soil anomalies to guide them.”



A1 Dome drilling

In the same announcement, MOD issued a drilling update at the A1 Dome.

The district scale potential of the T3 Dome Complex is further confirmed by MO-A1-002D, the second hole to test the large A1 Dome located 26km east of A4 Dome, has intersected approximately 4m of visible, vein hosted bornite up to the current depth of this hole at 193.9m.

Mr Hanna added, “Drilling at the A1 Dome is off to a great start with MO-A1-002D already intersecting what appears to be strong bornite veining and is still in mineralisation. We look forward to reporting further news of progress at the A1 Dome, where two drill rigs are now operating.”

This is now becoming very exciting because MOD/MTR have had two direct hits using the high tech AEM survey data and without any previous drilling or soil anomalies to guide them

The full announcement can be found here.

MTR CEO gave two interviews which can be found here and here. 

MOD also released an updated presentation on the day of the A4 assays which can be found here.

6th August Fundraise Announcement

Due to the outstanding results coming out of the T3 Complex, Metal Tiger BOD made a decision to raise funds to increase the MOD exploration budget & fund the newly acquired KML project. They considered the options of selling down some of the equities trading division holdings but preferred to keep current exposures and instead raise new cash via an equity placement.

The total funds raised amounted to £6.2m with Sprott and its affiliates taking £2.6m, of which Sprott Exploration Capital Partners took 37m new shares taking its holding to 137m shares or 10.18% of the company. 

It was great to hear Sprott continued support for Metal Tiger and with these additional funds, MTR is in an excellent financial position to develop both the MOD & KML projects at pace.

The full announcement can be found here and here.

Drilling update 4th September – A4 Dome

On 4th September 2018, MOD/MTR announced further exciting drilling results from A4 Dome within the T3 Complex.

Highlights were:

Hole MO-A4-003D, down hole intersections: 

31.2m @ 1.1% Cu & 11g/t Ag from 560m, including 5.0m @ 2.2% Cu & 22g/t Ag, from 586m (NPF contact) 

Hole MO-A4-004D, down hole intersections: 

19.3m @ 1.0% Cu & 10g/t Ag from 485m, including 4.3m @ 2.3% Cu & 21g/t Ag, from 500m (NPF contact) 


Assays results awaited for two further holes with potentially significant visible chalcocite and bornite vein hosted mineralisation logged: 

MO-A4-005D (230m south of MO-A4-003D) visible mineralisation from 443m downhole. 

MO-A4-008D (400m west of MO-A4-003D) wide zone of visible and locally strong mineralisation from 230m downhole. 

Hole 008D sounds very interesting with Michael McNeilly Chief Executive Officer of Metal Tiger commenting: 

“We are very pleased to announce further wide copper intersections on the A4 Dome, where drilling is building out copper mineralisation in a way reminiscent of the T3 Deposit. We are looking forward to determining whether the visibly strong vein hosted mineralisation seen in one of the latest holes, MO-A4-008D, correlates with the high-grade assay intersections in hole MO-A4-003D, which are separated by a strike distance of 400m”.

Here are two pictures of the A4 Dome with Drilling to date and some very interesting intersections including the Hole 008D awaiting assays: 



The full announcement can be found here. 


Environmental Approval – T20 Dome Complex 11th September 2018 

MOD/MTR announce that Botswana Department of Environmental Affairs has approved Environmental Management Plan (EMP) for drilling part of T20 Dome Complex. EMP covers drilling within a circa 700km2 area in the northern part of the T20 Dome Complex, approximately 80km west of the T3 Dome Complex. Diamond core drilling planned to commence in Q4 2018 subject to a four-week public review period starting 21 September 2018.

First planned drill targets are:

T4 Dome, T4 Prospect
where previous reverse circulation drilling intersected 2m @ 6% Cu & 111g/t Ag from 101m depth (announced 1 April 2016) and soil sampling and airborne electromagnetic (EM) geophysics data has defined a conductive structure coincident with a 5-6km long copper anomaly (announced 16 April 2018); and

T23 Dome, 15km west of T4 Prospect, the interpreted continuation of the EM conductive structure extending from T4 through the interpreted T23 Dome. This is excellent news because success at the T20 Dome will begin to prove that MOD/MTR have district scale assets containing a huge amount of Copper. Majors are already plugging in the data into their databases so everyone will have a very keen interest at the T20 Complex The full announcement can be found here.


Further T3 Dome Reading:

MOD issued this very interesting short video, explaining the potential at T3 Dome. It can be accessed here.

MOD also presented at the 121 Mining Investment Conference in London 17/18th May and have an updated presentation here.

Blue Ocean Equities have issues an updated broker note, which is well worth a read and can be found here.

Recently, MTR CEO Michael Mcneilly presented at the UK Investor Show and discussed the regional potential in the Q&A session after the presentation, including how majors are ‘plugging in’ the drill results and assays into their database. Another recommended watch here.


Sprott Global increase MTR stake to 16.41% via on-market buying

Sprott increase their MTR holding to a whopping 16.41% via on-market buying - see here.



Further, Material Events & Announcements


MOD MD Presentation 121 Mining Events published 23rd February 2018

Here is a presentation from MOD’s Managing Director, Mr Julian Hanna at the recent 121 Mining event in February 2018. It is a ‘must watch’ presentation as it lays down his thoughts, not only on what they have discovered but his confidence on what they are likely to discover within the huge licence area (12,000 sq km - bigger than Qatar!). He outlines the reason for the flat-lining share price of the last 10 months (of MOD & MTR) is due to the (mainly) feasibility work they have focused on which doesn’t excite the market, however, he goes on to say the market does react to exploration which he confirms the JV has enormous upside and is now entering that major exploration phase.

The finishing comments on the last slide relating to the T20 dome (which will be drilled later in Q3 2018) were of particular interest. He comments that they use Zinc anomalies as a way to find the copper deposits (due to the copper deposits having a 3/5m layer of calcrete over them) The T20 dome has a zinc deposit of which no prior drilling has taken place apart from one exploration hole which showed 6% Copper! He then goes on to say the actual zinc anomaly is 60km (37 miles) in size!! T20 drilling will be a very exciting time for investors.


Here are the slides that Julian Hanna used in the above presentation. Slide number 23 is the one he leaves on the screen at the end with that huge 37 mile Zinc/6% Copper anomaly at T20:

MOD Resources Botswana Copper 2018 Presentation


MOD Resources' Managing Director, Julian Hanna comments on the outlook for copper and provides an update on development and exploration activities at their Botswana Copper Project.



Here is a recording of a recent presentation to investors in Walsall:

MOD Resources video of the 20/05/2018 investor presentation  


T3 pre-feasibility study results:

On 31st January, MOD/MTR announced the T3 pre-feasibility study results. They released a ‘Base Case’ study (based on a processing rate of 2.5 Mtpa) and an ‘Expanded Case’ study which allows for a possible future expansion in year 4 to an increased processing rate of 4 Mtpa. 

It’s important to remember that the PFS covers just the T3 deposit and what we have proved up so far. It therefore provides a blueprint for the kind of economics of a ‘T3 style’ deposit and allows us to consider the kind of potential if (or more likely ‘when’) we find more T3 style deposits. This is a fraction of the potential of the overall acreage and clearly 2018 is now all about proving up more deposits via the huge exploration programme as detailed above (25th January). 

Here is a Life of Mine Financial Economics (and comparison) for both Base and Expansion cases:


These are very commercial numbers which are based on a US$3.00/lb copper price and current resource. We have the updated resource statement due in Q2 2018 and of course any further results from the high priority targets all through 2018’s drilling programme. Then we have the implications of a forecasted higher copper price many analysts are pencilling in. The sensitivity analysis (below) only goes up to a +25% increase on the $3/lb figure (to $3.75/lb). 

The two questions to ask then are, firstly what would happen if we find multiple T3 style deposits in the high priority targets this spring/summer and secondly, what would happen if Copper prices are in a bull market and climb into the $4+ range in late 2018 or 2019? The answer of course is something special and that is the reason MOD/MTR are absolutely ramping up exploration.


Sensitivity analysis on the Expansion Case:

* Please note that the PFS Base Case throughput has since been increased by 20% from 2.5 Mtpa to 3.0 Mtpa in August 2018 which will have a significant beneficial effect on the above Base Case figures


As you can see, just a Cu price increase alone takes the NPV to US$691m – that’s without any further upgrade to resources and expansion … very nice! 

The CEO gave an interview on the PFS on 31st January 2018, which can be found here. 


T3 Resource Upgrade – July 2018

On 2nd July 2018, MOD/MTR announced a Major Increase in the T3 resource, with total Mineral Resource Estimate for T3 now upgraded to 60Mt @ 0.98% Cu & 14g/t (0.4% Cu cut-off) for a contained 590Kt copper and 27Moz Silver metal. This was a 44% increase in the contained Copper versus the previous resource (24th August 2017) at a 0.4% cut off. 

The Metal Tiger CEO was delighted with these results and commented: 

“We are delighted to report a substantial Resource upgrade for the T3 Open Pit deposit. The revised Resource prepared by CSA Global, the well-respected independent resource consultants, has exceeded the JV expectations. The T3 Project Team is now assessing how the Resource increase will impact on the T3 Open Pit mine economics, with potential that mine life and production could be extended beyond the, 28ktpa Cu over 12 years, US$1.1B EBITDA, Expansion Case Open Pit model from the Prefeasibility Study.

With drilling continuing within the wider T3 Dome Complex we are hopeful that further significant copper deposits might be discovered within similar buried domes, and we look forward to reporting further exciting results.”

These results all but confirm the NPV $400m expansion case within the PFS and underpin the project value. Interestingly, the MOD/MTR JV often refer to this as a great ‘starter project’ … something which clearly defines their expectations of the wider licence area they are now exploring (rather successfully!)

The announcement can be found here.

THOR Mining

MTR have been building a significant stake in Thor Mining (THR), and as I covered earlier, MTR now own 12% of the company. The MTR CEO talked about how they particularly like the Tungsten play so it’s well worth keeping an eye on developments here. I suspect we will likely see a JV transaction in the near future which would sit within the direct projects division similar to Botswana. The recent strategic investment into Thor Mining on 23rd January contained some exclusivity clauses for potential JV opportunities into Thor Mining projects, the two paragraphs are below and the full statement can be found here.

·         Metal Tiger, reflective of the premium price paid for Thor stock, will receive a 90 day right of first refusal to participate in any new joint venture, acquisition or similar transaction undertaken by Thor during this period;

·         The right of first refusal shall not automatically include any current discussions or negotiations with third parties in relation to existing Thor Mining projects held or projects already under review, however Thor may extend an invitation to Metal Tiger to participate should this be considered appropriate to all parties.

Further reading of the Tungsten projects within Thor Mining can be found here.

Kalahari Metals Investment

On 6th June 2018, MTR announced that it has signed a binding Investment Agreement (the “Agreement”) to acquire up to 50% of Botswanan focused explorer Kalahari Metals Limited (“KML”).

KML is a privately owned company and holds interests in seven highly prospective exploration licences covering 4,063km2 in the Kalahari Copper Belt, consisting of two 100% owned exploration licences and five exploration licences subject to a binding earn-in agreement with Triprop Holdings (Pty) Limited (“Triprop”). 

Metal Tiger will have the right to acquire up to 50% of KML for a total consideration of US$1.6 million.

This licence area is ‘next door’ to the very prospective Cupid Canyon licence where there have been multiple large, high grade discoveries. The deal was skillfully brokered by the MTR CEO Michael McNeilly following 3 months of due diligence.

There are exploration plans in place for late 2018 and into 2019, using all of the tech and learning from the MOD/MTR JV.

This deal almost doubles MTR direct exposure into the Kalahari Copper Belt which will be of interest to a much larger player in the future.

The full announcement can be found here.

CEO Michael McNeilly had two interviews explaining the KML deal and can be found here.

Sprott Global have also produced a very useful note here.

Kalahari Metals Exploration Update July 2018

MTR announced they will deploy their successful AEM technology into the KML JV licence area, and this will commence in July 2018 with processed results expected September 2018. This is lightening quick action and clearly demonstrates their experience in the MOD/MTR JV area can be applied to the KML Licence area.

The full announcement can be found here.

Kalahari Metals Exploration Update 20th August  2018

Kalahari Metals Limited (“KML”) has entered into an exclusivity period with Resource Exploration and Development Limited (“RED”) to undertake due diligence with a view to acquiring an additional 5 licenses in Botswana. The licenses include 4,661 km2 of recently granted permits strategically located in the Kalahari Copper Belt. The prospective land package provides an excellent opportunity for KML to expand its current land position in the emerging Kalahari Copperbelt. This will strengthen KML’s position on the Copperbelt adding to its existing interests in seven highly prospective exploration licences covering a total of 4,063km2. Under the investment agreement announced on 6 June 2018, Metal Tiger has the right to acquire up to 50% of KML giving Metal Tiger further exposure to a significant area of largely unexplored ground, adjacent to significant recent discoveries in the highly prospective Kalahari Copper Belt.

Metal Tiger also confirmed that Airborne high resolution magnetic and electromagnetic (“AEM”) surveys (announced 10 July 2018), have now been completed over the prospective Okavango Project (Eastern Block) and Ngami Copper Project (Western Block) concessions.

 A Total of 16,700 km2 of high-resolution magnetic data were collected over priority areas identified at Okavango. KML anticipates final processed survey results by the end of August 2018.

The full update can be found here.

That brings us right up to date (17th September 2018) and clearly, we are now entering probably the most exciting chapter of MTR’s history. So, what’s coming next?

Significant newsflow to drive sentiment:

  • T3 Dome targeting those 7 dome structures (underway with regular results news now landing)
  • Further assays from large Copper intersections at A4 Dome
  • Drilling results from A1 Dome
  • T20 Dome (drilling October)
  • THOR mining investment/potential JV developments




So clearly, there is loads going on and huge excitement building. MOD is considered to be trading at a significant discount of 0.3 x NAV. With Metal Tiger now effectively having a 24.8% interest in the fully diluted MOD resources (following the JV deal of 18th July 2018), there is significant upside to be realised in the Metal Tiger share price as MOD re-rates towards fair value.

The crucial thing here of course is that that Metal Tiger now have an increased exposure to the exploration upside by retaining the 30% stake in all JV Licences (excluding T3) in addition to a fully diluted equity stake of 24.8% in MOD (up from 6%)


The big question is – Just how big and how valuable are these discoveries?

That’s all to come in the coming weeks & months, hence the market excitement.

This also lines up perfectly with current TA forecasts.


Metal Tiger Technical Analysis (TA) chart by bonker99

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Copper Technical Analysis (TA) chart by bonker99

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MOD Resources Technical Analysis (TA) chart by bonker99

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Tungsten Technical Analysis (TA) chart by bonker99

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