Let's talk NPF contact..., page-6

Morning Guys,

Another boring week so far for unloved MOD.

Over 2018, MOD has materially underperformed other Cu developers and even its JV partner, MTR:



However, I think that this is unjustified and is simply a result of:

(1) Cu out of favour at present due to ST trade fears
(2) MOD's T3 project is in the 'orphan phase' and holds no interest for speculators and too early for insto's
(3) MOD's exploration has been slow to deliver assays for a variety of reasons and those seeking 'shiny things' have lost interest
(4) The relative underperformance of MOD vs MTR in 2018 appears to be reversing the outperformance MOD experienced in prior years and could be due to the fact that MTR has/ is scaling back its other adventures globally and now solely focusing on the KCB, under the guidance (supervision?) of Sprott.

Thanks to BT for sharing the latest video from MOD. I think that this slide is really important:



... It is the first time I have seen this in a MOD presentation.

I have talked to a friend at Sprott who follows MOD and his comments were that MOD will be interested in finding zones where the NPF comes closer to the surface which will allow more economic access.

However, with economic deposits looking like they are present above the NPF in places, e.g. T3, this could provide the gateway to access deeper ore - for example, T3 will provide an open pit and potentially UG operation that will both make money and provide access much closer to any potential NPF ore at depth.

Ultimately, the value of the NPF will rely on the grade and size of the formation.

Given it's homogeneity and regional "sheet" like distribution, there could be a phenomenal amount of economic Cu available.

I think, Rhys, you raise a good question in that how will MOD economically explore this contact given the depth.

I think that their exploration programme is showing us how they will do this; i.e. drill the dome structures for the T3 like analogues and keep the drill holes going to test the second target, the NPF down deeper. Thus, MOD are getting two bites of the cherry for each hole.

If MOD can demonstrate homogeneity of grade and thickness of the NPF underneath the dome structures then that could provide the confidence to punch a few infill drill holes between dome structures to get a sense of the scale of this NPF structure.

I also wonder whether their EM tools can assist in showing areas where the NPF has been brought closer to the surface like it has been at Cupric's Zone 5.

Either way, I'd prefer MOD to look at the NPF now as they explore the domes vs. waiting til they are UG mining each dome, like T3, and then drilling from UG ... that could be years away.

Cheers
John