Africa Down Under Julian Hanna

MOD Resources on target for new beginning of copper mining

August 29, 2018
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Australia’s MOD Resources is on target to complete a critical feasibility study for its first mine at the T3 Copper project in Botswana by the end of Q1, 2019.
Addressing Day One of the Paydirt Africa Down Under (ADU) Mining Conference in Perth MOD Resources' MD Julian Hanna, said that in what is set to be a busy news period for the Company, the real highlight will be the completion of the feasibility study for an approximately 12 year T3 pit project.
The study is expected to be completed by March 2019.
Hanna told the ADU audience that T3 is a substantial 590,000 tonnes copper resource located on top of a large conductive dome.
“The T3 Dome Complex covers approximately 700 km² and contains numerous electromagnetic (EM) targets, including at least seven large conductive domes.
"Those seven EM conductive ‘buried domes’ are now being targeted for testing with the drill bit," he added.
Hanna said T3 is expected to become MOD Resources' first mine. Aptly, the local Setswana name for T3 is Motheo, which means beginning.
Discovered in March 2016, T3 announced a recent resource upgrade to 60 Mt, which includes an Indicated resource of 36.6 Mt @ 1.14 Cu and 16 g/t Ag.
The looming completion of the feasibility study early in 2019 is expected to lead to a Decision to Mine in March 2019, with first production targeted for the end of 2020.
Hanna said the T3 Pit project PFS has identified a robust development with a nine year Base Case of 2.5Mtpa production with a A$370 million NPV (pre-tax).
A 12 year Expansion Case, is examining a production rate of 4.0Mtpa, with an NPV of A$529 million (pre-tax).
MOD Resources has announced key appointments to assist with the development and funding of the initial open pit development of the T3 copper project, including Sedgman for Process and Infrastructure engineering, and Azure Capital and Terrafranca Advisory as joint debt advisers.
Hanna told the ADU audience that MOD Resources and its JV partner, Metal Tiger, are the largest licence holders and copper explorers in Botswana and that the exploration breakthroughs it had made with the discovery of the substantial T3 deposit will open the door for an expansion of its exploration activities in the country.
He said MOD Resources' use of breakthrough state-of-the-art airborne EM technology for targeting copper is providing it with an exciting look at the significant copper potential across all of the company’s Botswana exploration holdings, including the A4 Dome and the T20 Dome complex.
“The EM has been very successful in defining large conductive domes below the surface calcrete layer,” Hanna said.
MOD Resources is also looking at the potential for the proposed T3 process plant to be utilised if further mineable resources are discovered within the large T3 Dome Complex area.
Hanna revealed the ASX-listed MOD is now looking to dual list on the London Main Market in the December Quarter of 2018.
He told the ADU audience that the company believes the London market understands African mining scenario better than the Australian market, which in some ways has missed the MOD story.