What's happening is that MTB has announced base metal results (zinc and lead) that on average were 33% richer than the already "significant" results announced recently at the neighbouring Botswana prospect some 15km distant.
The Tsumkwe results included values up to 1266ppm zinc and were taken in a north/south line with holes drilled 100m apart. Further infill drilling will now take place to test the extent of the mineralization.
In his recent email to me regarding the significance of the earlier Botswana results, CEO Nigel Forrester generously explained a few points about cut-off grades as follows:
'Whilst these results are seen as encouraging, further drilling will be required before the Company can determine any sort of resource. Only once the resource stage has been reached, can the Company determine what various cut off grades should be applied. Cut off grades will vary according the length of the ore body, the width of the ore body, the depth of the ore body the dip & plunge of the ore body, the metallurgical characteristics of the ore body, etc, etc.'
It's obviously difficult for the company to assess just what it has in both Namibia and Botswana as an awful lot of infill drilling will be needed to map out the extent of both resources but he also remarked that it was encouraging to find mineralization over such a long strike line - and the latest line is much longer still. Will it prove patchy in between or constant? Only patience will tell.
In today's announcement to the market, Mr. Forrester also scotched rumours that MTB was considering spinning off its base metal assets. And why would they consider it just as things get exciting?
This stock is one to hold and watch as further drill results come to hand in my view. The stock has moved very swiftly in the past on small volume (Cath Davey, TA expert from Investorweb, gave it "big mover" status some time ago) so it pays to get set early IMO.
Good luck to all holders.
Gupper
MTB Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
