Exploration no problem for MOD BOTSWANA copper explorer MOD Resources is in a rather unusual and enviable situation for an exploration company; it’s finding it “reasonably easy” to make new discoveries!
From the very first drill hole MOD has been finding copper in the Kalahari region, and as such it’s capitalisation has gone from about $A4 million to about $80 million over the past 12 months or so.
An exploration methodology involving soils, magnetics and IP surveying has been working a treat generating drill targets – and the discovery of copper!
MOD MD Julian Hanna believes the company is onto something “quite special” in Botswana, and he indicated the sort of grades being seen to date place it in a niche space between the big tonnage, low grade porphyry deposits (typically seen in South America), and the much higher grading sedimentary deposits of the Central African Copperbelt.
Speaking at the Mining 2016 Resources Convention in Brisbane this week, Hanna said the other key positives emerging to date are the “kicker” that would be provided by the high silver content, and the very clean concentrates produced in early stage testwork.
He said “myths” about the Kalahari copper belt such as deep sand cover had meant the region was both “misunderstood” and just plain “missed” by the resources sector, with the false start of miner Discovery Metals a few years back not helping perceptions.
As exploration over MOD and 30% joint venture partner Metal Tiger’s extensive ground holding continues apace, MOD anticipates going into pre-feasibility in early 2017.
Scoping results are due later this year.
MOD Price at posting:
5.4¢ Sentiment: Buy Disclosure: Held
