QMEB » Major Increase in T3 Resource to 60Mt Containing ~590Kt Copper
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Major Increase in T3 Resource to 60Mt Containing ~590Kt Copper

MOD Resources Ltd has announced a substantial 44% increase in the total Mineral Resource at T3 (Motheo) compared with the previous resource estimated at the same 0.4% Cu cut-off grade. The revised resource estimate was prepared by leading independent resource consultants, CSA Global.

  • Total Mineral Resource at T3 (at 0.4% Cu cut-off) now comprises 60Mt @ 0.98% Cu and 14g/t Ag containing 590Kt copper and 27Moz silver 
  • Revised resource represents 44% increase in contained copper (at 0.4% cut-off) compared with re-evaluation of previous resource (announced 24 August 2017) at same cut-off grade
  • 46% of the revised total resource (at 0.4% Cu cut-off) is now classified in the high confidence Indicated Mineral Resource category
  • The resource upgrade appears to support and potentially exceeds the Expansion Case open pit model reported in the PFS (announced 31 January 2018)
  • Drilling is continuing to extend high grade underground potential outside the planned T3 Pit

 

The T3 Project forms part of a joint venture with AIM-listed Metal Tiger Plc (30%) and is located within an extensive holding of licences operated by in-country subsidiary, Tshukudu Metals Botswana (Pty) Ltd (Tshukudu) in the central Kalahari Copper Belt in Botswana.

The upgraded resource follows completion of a 90-hole program of infill and extensional diamond core drilling around the planned pit at T3. The drilling program also included holes to test for potential underground extensions outside the planned pit.

Assuming a 0.4% Cu cut-off grade, the total revised resource tonnage now exceeds 60Mt and contains ~590Kt copper, representing a major step up from previous resources. Assuming the 0.5% Cu cut-off grade used in the previous resource estimate (announced 24 August 2017), the revised resource estimate also represents a 31% increase in total resource tonnes to 47Mt and a 30% increase in contained copper to 531.5Kt Cu, compared with the previous resource estimate.

In addition, there has been a significant increase in copper grades at higher cut-off grades, compared with the previous resource estimate. For example, at a cut-off grade of 1.0% Cu, the grade of the revised resource has increased from 1.43% Cu to 1.97% Cu.

The new resource upgrade also provides further confidence in the project with ~46% of the total resource now classified in the Indicated Resource category.

MOD’s Managing Director, Mr Julian Hanna, said the revised resource has far exceeded expectations and as a result MOD’s project development team is reviewing how the expanded resource could impact the T3 Project. “As a minimum, this upgrade would appear to support the compelling Expansion Case pit model announced in the Pre-Feasibility Study, which was based on average annual production of 28Ktpa copper over a 12 year mine life. We are very encouraged by the new resource and believe there is potential that production and mine life could be extended beyond the Expansion Case,” Mr Hanna added.

“The new 60Mt resource also provides further confidence in the potential for significant discoveries that may exist in similar ‘buried domes’ within the T3 Dome Complex where a major drilling campaign is underway.”

The T3 Project Feasibility Study remains on-track for completion at the end of Q1 2019, following robust outcomes of the Pre-Feasibility Study (PFS) (announced 31 January 2018) where the Base Case suggested an EBITDA of ~US$730m (~A$960m) over 9 years and the Expansion Case indicated potential for generating ~$US1.1b (A$1.45b) EBITDA over approximately 12 years.

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