The pic a a little tought to see. Maybe if it was rotated 90 degrees, it would make more sense that it's a floor.
If you can drop the subfloor and make it so a properly supported layer of cement board could be installed right next to the mud bed, nice and flush with it....you could tile on that and leave a soft joint of caulk in the grout space where it met the other tiles.
But bonding to that mudbed isn't gonna happen without putting in a mud bed with your new metal lath overlapping onto the old metal lath. And that would require the removal of a row of tiles and at least the first couple inches of the old mud bed to expose the old lath.