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 an 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 P80 180 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 (from 2021 to 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 has made progress with the permitting process for its T3 project.

The Department of Environmental Affairs (DEA) has finalised its assessment of the environmental- and social-impact assessment (ESIA) for the proposed T3 openpit mine, concluding that “it has adequately identified and assessed anticipated impacts associated with the proposed activity” and will formally release the ESIA for public review.

The public review comprises a four-week period when comments from parties who may be affected by the proposed T3 mine can be made to the DEA. Following the review period, the ESIA is expected to be approved and Tshukudu Metals Botswana, a subsidiary of MOD Resources, should be in a position to apply for a mining licence.

Additionally, the DEA has provided comments on the environmental management plan (EMP) for the expansion of the Ghanzi accommodation camp to accommodate T3 construction and operational personnel. These comments will be addressed by MOD and its environmental consultant Loci Environmental and a revised draft of the EMP will submitted to the DEA in the coming weeks. If the EMP is approved, the accommodation camp is expected to be expanded to accommodate up to 400 personnel.

Key Contracts and Suppliers
Loci Environmental (environmental consultant).

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