Name of the Project
T3 copper project.

Location
Botswana.

Project Owner/s
MOD Resources.

Project Description
The T3 copper project feasibility study has presented compelling results.

The project is based on the T3 resource and the T3 openpit is modelled on the T3 ore reserve. The project’s ore reserve contains 342 700 t copper and 14.6-million ounces of silver. The feasibility study envisages a 11.5-year openpit mine, three-million-tonne-a-year conventional processing plant and all associated infrastructure.

The proposed six-stage openpit will use conventional equipment to support an average mining rate of three-million tonnes a year of ore, with a life-of-mine (LoM) strip ratio of 5.7:1.

Ore will be processed through a conventional process plant with a yearly throughput of up to 3.2-million tonnes at a head grade of 1% copper and 13.2 g/t silver. The flowsheet includes a primary crusher/semiautogenous grinding/ball mill comminution circuit to achieve a grind size of P80180 m, a natural pH flotation circuit, rougher flotation with a regrind circuit to achieve a grind size of P80 90μm and a cleaner flotation circuit.

Average yearly production over the LoM is expected to be about 28 000 t of copper and 1.1-million ounces of silver; however, for the first seven full years of production (between 2021 and 2028), plant throughput, feed grades and recoveries are expected to be higher than the LoM average and support copper production averaging more than 30 000 t.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $368-million and an internal rate of return of 33%, with a payback of 3.7 years from the start of production.

Capital Expenditure
Capital expenditure is estimated at $182-million and includes mine development, the process plant and mine infrastructure.

Planned Start/End Date
Prestrip activities are expected to start during the first half of 2020 and ore from the first stage of the openpit is targeted to be processed during the first quarter of 2021.

Latest Developments
MOD Resources is progressing with its growth strategy as the T3 openpit copper project continues towards a decision to mine.

The company and its advisers are advancing a range of funding options with interested parties following the successful completion of the T3 copper project feasibility study.

The objectives of the growth strategy are to continue to build mineral resources, confirm the potential for increased production through the planned T3 process plant and demonstrate the unique copperbelt-scale opportunity of MOD’s joint venture and 100% licence holdings, through new discoveries.

Planned targets include the T23 drilling, which will test the potential for near-surface mineralisation over a wide area. Success at T23 will provide further encouragement of the copperbelt-scale opportunity.

The T3 underground project represents a medium-term production growth potential for T3. Meanwhile, the A4 Dome represents a significant opportunity for expanded production and mine life at T3, according to the company.

While the feasibility study has confirmed the outstanding economics of the T3 openpit, MOD is looking to define additional high-grade resources in the surrounding T3 expansion project area that could leverage off the proposed T3 infrastructure and potentially result in increased production through the process plant.

In addition, exploration drilling will focus on several targets in the T20 exploration project, including the T23 Dome and T4 West prospect. The objective is to scope out the potential for new resources in this highly prospective area and confirm the wider potential of MOD’s dominant licence holdings in the copperbelt.

The exploration drilling, which forms a key part of the growth strategy, will initially focus on near surface targets in the T20 exploration project area and targets where there have already been numerous ore grade intersections reported, in close proximity to the planned T3 openpit mine.

Starting this month, the company plans to follow up on encouraging shallow disseminated copper and silver mineralisation reported in the first three holes at the T23 Dome, in December 2018.

The T23 Dome appears to be part of a structural zone, interpreted to link T4, T4 West and T23 prospects extending over more than 15 km. A preliminary interpretation of electromagnetic (EM) data along this structural zone indicates a number of potential domes and anticlinal folds occurring at a shallow depth.

While the EM data suggests the same structures may continue between T23 Dome and T4, drilling is required to test this potential, given that there has been no previous drilling within this area.

The first stage of nine widely spaced reverse circulation and four diamond drill holes is planned to follow up the initial shallow intersections at T23 and test a 4 km strike length of this structure.

If the T23 drilling programme is successful, drilling is planned to extend to the T4 West target, about 7 km east of T23. T4 West also shows similar structural features to the T4 prospect, where MOD has previously announced significant copper intersections.

Following completion of the T3 resource infill drilling programme, MOD expects to start resource infill drilling of high-grade, vein-hosted mineralisation, which is known to extend below and down dip of the planned T3 openpit.

Drilling of T3’s 100%-owned resource is expected to occur in two stages, with the first stage comprising a planned 16-hole diamond drill programme, designed to delineate further high-grade copper and silver mineralisation within the T3 underground target area. The second stage of drilling will include infill holes to assist with defining a resource, expected during the second half of this year.

The proposed A4 Dome drilling programme will be staged to follow up on three different targets.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
MOD Resources, tel +61 8 9322 8233 or email administrator@modresources.com.au