MOD (ASX) Ann: Quarterly Activities Report

Originally posted by RhysT ↑

This was a question I posed a few weeks ago actually regarding the exploration. Given they have several high priority targets in the T3 complex still to be tested, and then T20 nearing environmental approval to begin drilling,,,, whether they would focus on a particular dome if they had good drill results (i.e the A4 core samples), or if they are sticking to a plan to continue just two or three drill tests of 'every' dome,,, then will decide on the highest priority domes to drill out once they have all been tested.
From what you pointed out on their timeline, I am leaning towards the latter, given they have their home base mine at T3, although it would be great to quickly add a resource at A4 as a feeder and beef up the plant plans,,, I do believe in the short term they are completing the T3 Feasibility Study with the resource/plan they have been running with since the beginning. I know they have an expandable plant plan which can fairly easy factor in ore from other sources and be up-sized, so they aren't ignoring what other discoveries will mean for T3.
But i'm not seeing anything that indicates they plan to focus on any particular dome while they still have targets untested.

It definitively won't be a bad decision if we get a few more A4 like announcements regarding other domes, but it definitely means more waiting on results before we get any definitive upscale confirmation for what their future production could be.

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"MOD Resources Limited (Company) requests a trading halt to be placed on the Company’s securities effective immediately pending an announcement regarding significant drill results within the A4 Dome which lies within the ~700km2 T3 Dome Complex.'

Guessing this will allow them to focus on A4 as early feed, the synergies are compelling if high grade and they can make a reserve out of it early as will mean
1.larger plant but at a lower sustainable capex per tonne due to more total resource .
2higher grade for the plant coming in for the first few years improves IRR so reduces sovereign risk plus being earlier high grade feed is not discounted to the same extent as LOM feed
3. Reduces risk so a grater % of the capital needed can be from finance rather than equity (placements )

Just like to thank me mate JID with his research and analysis and for keeping me up to date on MOD

"MOD Resources Limited (Company) requests a trading halt to be...